WRKO>Audio & Video on Demand>>Jonathan Wallace (Morningstar, FPURX)

Jonathan Wallace (Morningstar, FPURX)

Jun 13, 2018|

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Join our brand new tax club by texting the word. Barry is 63566. So your first and last name and get involved today you're listening to the financial exchange radio network. This segment of the financial exchanges brought to you by a leader bank it's not too late to get a great read on a home mortgage and you're back at some of the most competitive reach around call 8776917900. We're busily bank dot com for more information lead a bank is equal housing lender member FDI CNN analyst for 49. 250. Joyce on the line that was Jonathan Wallace from Morningstar Jonathan thanks for joining us. And it paid for out of me greatly appreciate it absolutely Johnston what fund re talking about today. Are fidelity puritan. And what exactly stands out about this one to you. Respond. Well it it it had an excellent track record but it also has excellent management as a very nice investment process but it. So a lot of I'm all in our state is 70% equity group the neutral position is that 60% equity and 40% XP com. But he experienced management of sovereignty Roddy is the lead manager on despite. His ability to just be equity allocation and be -- opportunity. So would be PH from net sixty to 6040 allocation. So they give you an example but I'm currently has about two thirds of equity as they see that there's a little bit more opportunity in equity right now on the bottom. But he fixed income leave. Which consists mostly of investment grade but about. 5% of the fund that invested in on high yield debt it also managed by experienced editors Michael Clayton Hartley right. And so the fund has a nice process. As experienced management and the under has actually landed in its on its upbeat style of its peer group. Says he'd cut the benchmark and it's typical here quite quite handily over the. Here's Jonathan is this fund purely investing inside the United States does have international components is well. And that's a great question on it typically has averaged about 5% of the portfolio. Has been overseas so that's typically where they eat that they think that the neutral position being at 5% international. But they will adjust that upward downward if they see opportunities overseas. What kind of expenses are associated with owning this fund anything upfront or on the back into what kind of ongoing expenses. That's also excellent question on your listeners on despite his very reasonably priced at eight bitter at the prop positive price or for Morningstar. Other prices are very reasonable it's 55 basis points per investor shares but the no load by. No load on the front and Nolan on the back and and it's as if he by basis we expense. Where the average investor shares there's an institutional share class out there a price a little bit lower 46. But most most investors are gonna going investors shared a if he I think this. Where do you see this fitting into someone's portfolio. This is a really good bye and force somebody who wants to be. What I would eat moderately aggressive it's. I find that an individual wanted out of that allocation ego somewhere between you know. State sixty cute baby. 70% in equity and yeah it'll adjusted so well that benefit that at this as well you know what there's single holdings are one of the apple in the portfolio. It is certainly appropriate and what investors should also be aware of is that the equity oh lead towards growth. So as a result on the funded. You know benefited you know in recent years because that's growth by bill it would trail in a market like let's say 2016. Where. Where value has battled that that are sort of good core holding a portfolio either as you know majority holding more you know you could build and things around if you wanted to do well. Very good Jonathan thank you for the time today. Gravity that's Jonathan Wallace from morning start talking about the fidelity puritan fund the ticker on that by the way is FPU. Or acts I've always liked balanced. Bonds and you know a lot to it when my kids were younger their friends. Knew that I was an investment advisor says they'd say to me where you know I see 5000 dollars a suburb which should I do it. The most said you know big egg and never gave them a specific about it well. Come back to me knowing your research three different balanced mutual funds these are kids that didn't these are high school kids that didn't know would have balanced mutual fund idea. They looked it up they invested in it and I've had a number of them come back to mean currently twenties and thanking me because they've grown so nicely yes and you know what I like about it is they're gonna lose money in a down market but not as much money. Gave it to business group them in the case we you know in their first investigated your race first investing experience any of a balanced mutual funds to some people should take a look at.