Tag Archives: TGINX

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

Dec2013x125

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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.

Artio Global High Income Mutual Fund (BJBHX): I Bailed With Regret.

Anura Guruge, laughing, picture November 16, 2011.

….

..by Anura Guruge


Last investment related post:
>> The 2012 Special Dividends: Selling Short … — Dec. 3, 2012.


I got back in in March 2013 and have stuck with
it through thick and thin.

See posts one & two.


Artio


Artio Global High Income Fund (BJBHX) is what has kept me afloat, with my head just above water, for the last 3.5 years. I adored it, sang its praises and recommended it, all the time. It WAS a great fund. Of non-institutional mutual funds (not counting the semi-cannibalistic closed end funds (CEFs) that distribute some of their capital as distributions) it had the highest monthly dividend I could find (relative to NAV), with a 0.02 variation between months. There were also period of genuine growth.

60% of my meager, severely depleted savings were in BJBHX and until last Friday (December 28, 2012), I never gave it much though. BJBHX had been ‘a keeper’. Come December I start scouring the Artio Website for their year end distributions. Yes, I found this year’s, and as ever it was a range. The minimum was 0.03 per share. Last week I called them twice trying to see if they can get me a better idea. They wouldn’t.

They paid the December 2012 dividend on the night of December 27. It was 0.03! For 12 hours I consoled myself thinking that this was just a special year end distribution and that they would do their normal monthly distribution on December 28, the 28th their usual target date for distributions. I was wrong. 0.03 was it for December.

The November distribution had been 0.07. ‘Marketwatch‘ had 0.07 as their ‘Income Dividend’. They had never been below 0.05 in all of 2012. They had never done just a 0.03 in years.

I felt raped. If they had given us a head’s up, I would not have felt so bad. I called them twice last Friday. Their telephone support isn’t in the same class as Fidelity.

I called them again yesterday and asked whether I could speak directly to a Fund representative. To their credit they said they would try and that they will try and get somebody to call me.

But, prior to the 4pm market close, I placed an order to sell all my shares in BJBHX.

The phone rang at 4:20. It was somebody from BJBHX. He was very nice. He understood my issue. It appears that due to foreign currency fluctuations BJBHX had a trading loss for the year. So rather than distributing capital gains, they had loses. The 0.03 was a reflection of that. He claimed that dividend would go back to ‘normal’ in 2013. To late. I had already sold and BJBHX has a very strict re-investment policy to protect holders against churn. So if you sell, you typically can’t get back for 30 days. It is in the prospectus. But, emotionally I am done with BJBHX, though I know that you can’t let emotions influence your investing.

I could be wrong, but as far as I can see, I cannot find another non-instutional, non 5% up-front load, ‘open’ (as opposed to ‘closed’) mutual offering monthly distributions of 0.07 per share on a $10 NAV — and I check each month on Yahoo finance, because the ‘summary’ rate quoted on sites like ‘Marketwatch‘ can be way out-of-date.

The nearest I can find is Janus High Yield, JAHYX. JAHYX is my backup. They maintain a fairly steady NAV. FHYTX and TGINX are close.

I don’t trust CEFs. Too many games for non-insiders, so to speak. So I stay away. Yes, I get tempted, but I refrain. I have good will power. Looking at some MoPay stocks. Interesting. But, bottom line, BJBHX and I have parted company.