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Taking my own advice

March 28th, 2007 at 12:10 pm

We are opening a Roth IRA for my wife in may, and we (I) had to go through selecting a mutual fund for her to start with.

I look at our Roth's as "One Entity". My Roth has 30k+ in it, invested in:

PRFDX (~6k) T Rowe Equity Income
PRWCX (~5k) T Rowe Capital Appreciation
RPMGX (~5k) T Rowe Mid Cap Growth
PRNHX (~5k) T Rowe New Horizons
PRIDX (~2k) T Rowe International Discovery
PREMX (~3k) T Rowe Emerging Markets Bond

This is about 45% large cap, 20% mid cap, 10% small cap, 8% International small cap and 17% international bond.

It was obvious to me the hole was "international large cap".

I then looked around for foreign large caps. T Rowe International Growth and Income made the short list. Glanced at two other T Rowe funds (Overseas and Global Stock), along with a few other good International funds (Dodge and Cox).

Dodge and Cox required a $1000 initial deposit with restricted automatic investing, so that "lost" the race with T Rowe. We are sending $300 to open the account and contributing $300/mo to open with Int'l GrIn.

TRIGX was chosen because it follows a good investment philosophy:

"Investment Objective
The fund's objective is long-term growth of capital and reasonable income through investments primarily in common stocks of mature, dividend-paying, non-U.S. companies.

Strategy
Invests in large-capitalization, dividend-paying companies outside the U.S. The stock selection reflects a value orientation. "

Has solid returns over mid term (month end/ quarter end):
1 Year 24.12% 29.92%
3 Years 21.55% 22.79%
5 Years 18.78% 17.93%
10 Years N/A N/A
Since Inception* 10.17% 10.24%
Inception Date December 21, 1998

And reasonable expenses
Expense Ratio As of 10-31-2006 0.91%


1 Responses to “Taking my own advice”

  1. kv968 Says:

    Not that it means anything, but that was my pick for you. I know you like your dividend-paying companies and out of the choices you were looking at that, to me, TRGIX was the best one out there. Dodge & Cox is always a good choice, but I think T Rowe may be even better. I fortunately have a good int'l fund in my 401k so I don't need one, but if I did I'd take that one myself.

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