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  1. #1

    Dick or anybody else-need help with IOFIX

    You can read what I found here (post). I called them directly and talked with one of their sales/analyst and this is what he told me.
    They don't use swap/deriv. They buy mostly mortgages none agency floating rate with low duration odds/lots and tranches at 63 cents on the Dollar from various places including hedge funds. The big shop also like it but it's too small of a market so they don't do it much and it takes too much time to get it. Most of these mortgages are from 2003-2005. Their AUM is only about 730 million
    This is how the performance is very smooth, you get about 0.4% monthy steady div (4.8% annually).
    He also emphasizes that as long as the economy is steady and improving the fund will do well. If rates rise they will also do well because it's floating. If people refinance it's good too. If the economy will get bad then it's not going to do well.
    Every quarter ICD (never heard of them) rate their mortgages and this is why the price jumps 1-1.5% in one day.
    Chart of PIMIX+IOFIX.
    Can you please explain the above in simple term and does it sound right?

  2. #2
    Hard to know what to say....it just sounds like a little busted MBS and ABS fund. I've never hears of ICD as an organization (?) --- just interest (rate) change date? Personally, i'd never be attracted to some tiny OEF when industry majors all provide similar products backed by very expensive research and market power.....and unless you plan to put a lot of dough into the little thing, the past performance record suggests you might pick up enough extra return to pay for a nice dinner every year.....
    Sorry nothing smarter......Dick

  3. #3
    Not answering FD's question, but rather a "where fit?" question. It would compete with my MBS and credit oriented funds. For me, the problem is 80% ABS as I hate even 40% sector allocations. And higher ER is another problem. All the other funds we talk about that would compete for portfolio play that I am not a fan of (PTIAX, GIBLX, PMZIX and SEMPX), I would actually prefer over IOFIX.

  4. #4
    Paul:"Not answering FD's question, but rather a "where fit?" question. It would compete with my MBS and credit oriented funds. For me, the problem is 80% ABS as I hate even 40% sector allocations. And higher ER is another problem. All the other funds we talk about that would compete for portfolio play that I am not a fan of (PTIAX, GIBLX, PMZIX and SEMPX), I would actually prefer over IOFIX"
    Typical Paul post, touting his style of investing, rather than addressing FD's questions about how IOFIX performs, creating a pretty impressive initial period of performance. Paul's investing style is not the focus of this thread. The 4 funds that Paul is not a "fan" of, are some of the best bond funds available, but of course they don't fit "his" investing style. So his valuable contribution to this thread, is to automatically dismiss IOFIX, because it does not fit into his investing style.
    I do not know if IOFIX will ever make into my portfolio, but as FD notes, it is well worth exploring additional research on it, to determine if its initial outstanding performance, has the potential of continuation. I will not dismiss it, and I will be interested in learning more about it, before I make an investing decision.

  5. #5
    It appears to me to be more inline with other All Mortgage Funds, like VFIIX, TGLMX, DLTNX/DBLTX
    While PIMIX used to be, its a More of a Multiy Sector Fund now
    IOFIX Income Opportunities Fund? Nice Plain Vanilla Name, can be anything..Glad its not a Loosing Income Opportunities Fund..to be owned by those needing a Tax Shelter, while its assetts build value and they will sell them in the yrs ahead ..( I had 3 properties like those in my Business that help me avoid paying taxes..
    and why has this New ( since 15') Fund done so well?
    Alpha Centric .Is it a Hedge Firm?
    Principal Mgr: Brian Loo
    Mr. Loo began his career as Senior Vice President in the mortgage backed securities department of TCW in 1994 and left TCW in 1996 to become a founding member Principal of Metropolitan West Asset Management, a fixed income money manager, which was acquired by TCW in 1996. Mr. Loo holds a BS from UCLA, an MSIA from Carnegie Mellon Tepper
    Seems he and #3 man - Garrette Smith-a navy Veteran, connected to Garrison Point. Mr. Smith was *Vice President of Barclays Capital, Inc and, from 2006 to 2008, he was a Securitized Product Trader for Lehman Brothers, Inc. where he traded agency and non-agency mortgage backed securities. From 1996 to 2005, Mr. Smith was an officer in the U.S. Navy.
    and then he becomes a *VP with Barclays? Wonder what he did in the Navy to qualify him to start off in such a High Postion on the Corp Ladder at Barclays? Married the President or CEO's Daughter?
    It appears too godd to be true and me thinks your wise to Do alot more Investigating and Maybe put on your watch list or Just Put a Few bucks of Extra $ into it for awhile..
    I'd have to put at least 20% into it to have a decent impact on my Bond Port..
    and I've got enough Spec/extra $ out there in Pimco's CEF's ( PDI and PCI) for now.. and so far, only got about 60% of my Cost basis 4 out of them so far.. waiting till I can take it all out ( after it doubles) and just let the profits ride in them.


 

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