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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: rgammon who wrote (17071)	10/13/2001 12:11:24 PM
From: Bernie Goldberg	Read Replies (1) \| Respond to of 18931

Robert, You wrote:The list of ingredients tells me alot more than the nutrition label does. That only works if you read it. You also wrote about ACG:Much of its holdings seem to be long term bonds that it has held for many years (what happens to the dividend when many of those 10+% bonds mature and have to be reinvested??). On October 11, two days ago, I posted a portfolio report from ACG in Post #17049. It had a full list of ingredients. For your benefit I will repeat it here. Top 10 Fixed-Income Holdings Portfolio% 1) US Treasury Bonds 5.38% (02/15/31) 14.54% 2) US Treasury Bonds 13.25% (05/15/14) 11.27% 3) US Treasury Bonds 6.25% (05/15/30) 8.34% 4) US Treasury Bonds 0.00% (05/15/17) 8.34% 5) US Treas Sec Stripped Int 0.00% (05/15/12) 6.93% 6) US Treasury Stripped Prin 0.00% (11/15/21) 5.29% 7) US Treasury Bonds 12.50% (08/15/14) 5.15% 8) US Treasury Bonds 12.00% (08/15/13) 5.08% 9) Russian Federation - 144a 5.00% (03/31/30) 3.76% 10) US Treasury Notes 5.00% (02/15/11) 3.70% Security Type Portfolio% Treasury 74.03% Sovereign 12.13% Cmo/abs 1.64% Preferred Stock 1.14% Brady Bonds 0.28% Yankee Bonds 0.04% Corporate: Banking 4.07% Communications 2.52% Communications-mobile 2.04% Cable 1.75% Energy 0.03% Industrial 0.01% Short-term: Time Deposit 0.32% Total 100.00% One can see from this list of the top ten holdings, which by the way represent over 70% of the total holdings of the fund, that duration is not a problem. It is also easily calculated that over 30% of the fund has maturities beyond 2030. We both seem to agree that this is a good long term holding. What more information do you need? By the way, you should also notice that very few of the holdings (21.76% to be exact)are yielding 10+%. That's probably the main reason that purchasing Bonds is left to the Pros. Bond and Bond Fund price movements are really kind of simple. When the Fed is lowering rates the prices go up and when the Fed is raising rates the prices go down. I know you like to work with arcane mathematical formulae. This is probably why you do not understand how the principal of buying at a discount and selling at a premium fits in with the AIM methodology.