Archive | March 9, 2013

My On-and-Off, Uncontrollable Infatuation With Artio Global High Income Fund (BJBHX) Is On Again.

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by
Anura Guruge


Related post:
>> Artio Global High Income Mutual Fund (BJBHX):
>>
I Bailed With Regret — Jan. 3, 2013.


Artio Global High Income (BJBHX) vs. TCW Emerging Markets Income (TGINX).

Artio Global High Income (BJBHX) vs. TCW Emerging Markets Income (TGINX).


Yes, people come here looking for information of BJBHX since my earlier post.
Hence this post in the interest of full disclosure.


This, I am sorry to say, is like one of those bad fatal-attraction stories.

I keep on going back to BJBHX. But, to be fair, it has been good to me, very good to me, at times. It kept us afloat, albeit just, during the latter part of the ‘financial crisis’.

I bailed out in January, with regret (as I clearly said in the title of my post), because I was ‘mad’ — and I know that I am by now old and experienced enough to finally realize that you don’t make investment decisions based on emotion. But, I did. I felt that they let me down. After I had placed the sell order, a representative from BJBHX did call me to explain why they missed their December dividend — that I was banking on (to subsidize Christmas).

To be fair their dividend rate has gone down. It is now a full ‘0.1’ lower than it was in 2012, and while ‘0.1’ seems trivial on paper, it is huge in the word of income investing.

Now this was not the first time BJBHX and I have parted company. I have kissed it goodbye a couple of times over the years. Invariably I take succor in TGINX when I part company with BJBHX, because it too is a good income generator. However, I guess the emerging market bond bubble mus have popped or the fund manager at TGINX is still on vacation after Christmas. It did very poorly in the last 2 months. I have no patience with funds that don’t live up to my expectations of them. Sod, Fidelity’s 6-month hold period. I gladly pay the $75 penalty and get the hell out. TGINX is more temperamental than BJBHX. It is history and I don’t have any real attraction to it. Doubt whether I will ever go back to it.

BJBHX has a ‘high-frequency trading’ restriction. If you bail out you have to wait 30 or 45 days before you can get back in. I actually applaud that rule. I did get an early morning call from Fidelity once, while I was still in bed. Artio had called them up and complained that I was trying to get back in within 12 days. Though they called up and complained and told Fidelity to tell me not to do it again, they accepted my order! That was funny.

This time, I was good. I waited a full 60 days. But, I only invested half as much as I had with them before. So lets see. I found another fund. The dividend income is a tad lower, but it performs quite well. And then I have a Janus account that is the ‘slow-and-steady’ tortoise that ‘doesn’t fluctuate much’. So that absorbs some of the market volatility.

Yes, people come here looking for information of BJBHX.

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