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Explorer ○○

Thoughts on PRWAX (New America Growth Fund)

Since PRWCX is still closed, what do you think about PRWAX? (I know cgibbs and chang  have been looking at it).

Based on what I see in Portfolio Visualizer, I am thinking about replacing VIGAX (Vanguard Growth Index) with PRWAX in my "explore" category.

PRWAX seems to have roughly the same volativity, much better income, and good total returns. The much higher cost is a bit of a turn off but now that I am fully retireed I like the distributions compared VIGAX.

Appreciate any insights.

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Participant ○○

Re: Thoughts on PRWAX (New America Growth Fund)

 

Doesn't it still run about 8 percent foreign?

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Frequent Contributor

Re: Thoughts on PRWAX (New America Growth Fund)

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Contributor ○

Re: Thoughts on PRWAX (New America Growth Fund)

PRWAX seems to have . . . much better income?

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Re: Thoughts on PRWAX (New America Growth Fund)


@yogibearbull wrote:

IBD has a feature on it,   https://www.investors.com/etfs-and-funds/mutual-funds/best-mutual-funds-top-manager-explains-big-ama...


Interesting reading ..... but I note that TRBCX has an even higher allocation to #1 holding AMZN, as well as to BABA.

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Explorer ○○

Re: Thoughts on PRWAX (New America Growth Fund)

Sorry Anitya, I should have been clearer. It appears PRWAX has a much better annual revenue distribution than VIGAX, without having to sell any of the fund to obtain that.

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Explorer ○○

Re: Thoughts on PRWAX (New America Growth Fund)

A good article Yogi . Do you all see a problem with a larger concentration in Amazon within tech for an "expore" holding? I personally think that it is more likely to hold up better than Apple if things start souring, as the article suggests.

I note that M* rates the two funds essentially the same, 4 Star Silver. Marketwatch, however, rates PRWAX a bit better than VIGAX.

Further thoughts?

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Frequent Contributor

Re: Thoughts on PRWAX (New America Growth Fund)

Being index funds, VIGAX/VUG, have income distributions, but no CG distributions. PRWAX has uneven income and uneven CGs [may not be desirable by some]. Charts for VUG and PRWAX are quite similar. QQQ has narrow design [top 100 nonfinancials on Nasdaq Exchange] but does well. M* Charts    Stockcharts

YBB
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Contributor ○

Re: Thoughts on PRWAX (New America Growth Fund)


@Newer_Retiree wrote:

Sorry Anitya, I should have been clearer. It appears PRWAX has a much better annual revenue distribution than VIGAX, without having to sell any of the fund to obtain that.


Are you intending to hold it in an IRA or taxable account?

I do like TRP as a fund family for active equity funds.

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Explorer ○○

Re: Thoughts on PRWAX (New America Growth Fund)

I have those funds in an IRA. Any “earnings” would go to a money market settlement fund within the IRA where I withdraw what I need for living expenses beyond Social Security. I also have Wellesley, Wellington, and VDIGX within the same IRA.

As to the other question, might it have something to do with the relatively young fund manager?

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Frequent Contributor

Re: Thoughts on PRWAX (New America Growth Fund)

TRP seems to have a lot of LCG funds that look very similar to one another. They probably share a number of common analysts, and the managers doubtless talk to one another frequently. I see at least five not-dissimilar funds on the TRP page:

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Explorer ○○

Re: Thoughts on PRWAX (New America Growth Fund)

Chang,

You point to something that has perplexed me.

Maybe @yogibearbull or others can explain it in plain language that a novice like me can understand.

I.do see that some funds have a M* rating of 5, while others are at 3.

Still leaning toward PRWAX as being the best choice among that bunch.

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Contributor ○

Re: Thoughts on PRWAX (New America Growth Fund)

OP,

Agree with Chang - I do think TRP managers share a macro view, just like at PIMCO.  I can see this from how their funds behave.   

TRGOX seems more interesting than PRWAX.  The TRP page (see link in Chang's post) indicates the fund's inception is May 2020 while the fund has M* 5 stars.  I would check what that is about (may be a prior fund under the same strategy) and whether TRGOX is available to retail investors at brokerages?  

https://citywire.co.uk/funds-insider/manager/taymour-r-tamaddon/d23238?periodMonths=

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Frequent Contributor

Re: Thoughts on PRWAX (New America Growth Fund)

In another thread (forgot where) someone asked about TRBCX's size ($79b, so considering other funds managed by Puglia, probably >$100-150b run the same way). TRP does close funds, so I assume they don't see a need to.

Still, the article linked by Yogi makes some interesting comments about PRWAX's flexibility with a much smaller asset base. 

TRBCX owns 124 stocks; not really a huge number compared to similar funds (many Fidelity funds own 200-500 stocks). PRWAX is a little more focused with 81 stocks.

What strikes me, though, is the tiny size (strategically useless) and kind of some of TRBCX's smallest holdings. The full list is here. See below the stocks less than 0.1% of the fund. Some of these cannot possibly be passed off as growth stocks. One in particular is the ugliest value trap known to man. Why would TRBCX own these stocks? I suppose it doesn't matter, on the one hand, because their amounts are (relatively) so small. On the other hand, would you own 0.1% of your portfolio in a useless piece of dreck (say HSGFX, to pick an example)?

Amgen0.09%$54,128,910.00Health Care
Maxim Integrated Products0.09%$53,964,148.45Information Technology
Regeneron Pharmaceuticals0.09%$53,577,131.96Health Care
Seattle Genetics0.09%$51,189,375.42Health Care
Cintas0.08%$46,509,570.00Industrials & Business Services
Abbott Laboratories0.08%$46,037,514.38Health Care
Dollar Tree0.08%$45,859,239.30Consumer Discretionary
Yum! Brands0.07%$43,653,541.47Consumer Discretionary
AbbVie0.07%$42,894,970.00Health Care
GE0.07%$42,711,975.48Industrials & Business Services
Constellation Brands0.07%$39,198,924.80Consumer Staples
Citrix Systems0.05%$30,291,700.00Information Technology
Automatic Data Processing0.05%$29,548,302.48Information Technology
Trip.Com0.05%$28,620,185.65Consumer Discretionary
KLA0.04%$25,488,695.50Information Technology
American International Group0.04%$22,240,426.75Financials
Coupa Software0.04%$21,612,458.29Information Technology
American Tower0.04%$21,126,105.00Real Estate
Wynn Resorts0.04%$21,118,082.83Consumer Discretionary
Teleflex0.03%$18,986,113.80Health Care
Fortive0.03%$17,781,610.91Industrials & Business Services
IHS Markit0.02%$14,765,820.00Industrials & Business Services
Pioneer Natural Resources0.02%$13,149,056.30Energy
Citigroup0.02%$10,968,511.32Financials
JPMorgan Chase0.02%$9,123,280.08Financials
Aptiv0.01%$8,322,938.72Consumer Discretionary
United Airlines Holdings0.01%$7,859,830.65Industrials & Business Services
Air Products & Chemicals0.01%$6,740,031.26Materials
NextEra Energy0.01%$6,670,708.26Utilities
Restaurant Brands International0.01%$5,512,691.42Consumer Discretionary
Motorola Solutions0.01%$4,767,840.40Information Technology
Match0.01%$4,715,916.40Communication Services
Agilent Technologies0.01%$4,597,287.80Health Care
Ferrari0.01%$4,269,366.31Consumer Discretionary
Concho Resources0.00%$2,366,819.75Energy
Philip Morris International0.00%$1,818,892.80Consumer Staples

 

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Contributor ○

Re: Thoughts on PRWAX (New America Growth Fund)

I added a sentence that I had accidentally edited out in my last post.

Chang,

Thanks for the TRBCX post.  Pretty interesting observation.  Makes me wonder if the fund is thinly staffed and can not even get to housekeeping.  It turned out that growth and technology performed well in the latest crisis and the fund lucked out but it seems one can not rely on these guys to react to fast moving markets if they were to occur again. 

A

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Contributor ○

Re: Thoughts on PRWAX (New America Growth Fund)

TRGOX - TRP Large Cap Growth Fund.  The fund strategy statement at TRP site does not provide anymore insight than what the fund name suggests. 

M* and TRP say the fund inception date is May 4, 2020, but M* gives it five stars.  I can pull up M* chart from 2001 and the fund AUM is $18B.   Feel free to explore the inception date mystery - does not bother me.

No meaningful fund flows into the fund since 2009, including 2020, except a $3.5B withdrawal in one of two months in 2019. 

Tech, HC, and Communication sectors make up 63.5% of the portfolio.  58 holdings; top 4 make up 31% and top 10 make up 50%.  25-30 make up 80%.   We probably can say it is a sector concentrated and focused fund - may be a consequence of needing to be a Large, Growth fund?

The fund is available for purchase at Schwab and Vanguard but not at TD and Fidelity.   Manager bio at

https://citywire.co.uk/funds-insider/manager/taymour-r-tamaddon/d23238?periodMonths=

I am probably biased in favor of fund managers that have basic (or applied) science as part of their background.

Any additional thoughts?

 

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Frequent Contributor

Re: Thoughts on PRWAX (New America Growth Fund)

Hollow 5-Stars for Investor TRGOX are based on past performance of older Institutional class TRLGX.

YBB
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Re: Thoughts on PRWAX (New America Growth Fund)


@yogibearbull wrote:

Hollow 5-Stars for Investor TRGOX are based on past performance of older Institutional class TRLGX.


I was expecting the chart to put a vertical line at Inception but may be that means something else.  

The institutional class explains the 2019 negative fund flow.

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Frequent Contributor

Re: Thoughts on PRWAX (New America Growth Fund)

As a follow-up to the below, here's a chart (old M* style) of the funds below, which can be manipulated for rolling returns vs TR and various time frames. (TRLGX used as a proxy for TRGOX which M* doesn't support): link

Over 5 years, the top 3 funds are virtually identical. Over <3 years, PRWAX seems to have a slight advantage.

The rolling return picture over the last 3 years -- usually more informative -- for the top 3 funds (link) shows that since 2018 PRWAX outperformed the others during bullish periods, but suffered no worse during bearish periods. Prior to 2018, though, it was the opposite. (I chose a 6-month return period ... you should vary it to see what happens!)

Go back over 5 years (link), PRWAX definitely struggled relative to TRBCX from 2014-2017, during bearish and bullish periods.

The current manager started his tenure in early 2016, though, so it may not be fair to go back more than 4 years. Maybe we can conclude that he had a wobbly start for about two years, and then found his feet?

TRGOX seems to fit somewhere between the other two.

Not easy to make any definitive conclusions.


@chang wrote:

TRP seems to have a lot of LCG funds that look very similar to one another. They probably share a number of common analysts, and the managers doubtless talk to one another frequently. I see at least five not-dissimilar funds on the TRP page:

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Participant ○

Re: Thoughts on PRWAX (New America Growth Fund)

Thank you all in the forum for discussing and recommending PRWAX. I bought these fund 2 days ago and I eliminated small portions in individual stocks in my IRA account.

SRT

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