question on wells Fargo Target 2020 CIT Class E3

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dallasguru
Posts: 4
Joined: Sun Dec 24, 2017 12:57 pm

question on wells Fargo Target 2020 CIT Class E3

Post by dallasguru » Mon Apr 16, 2018 1:37 pm

all my funds are my Company 401k account with - Wells Fargo Target 2020 CIT Class E3. I suddenly saw that, cash is 70% and Bond is almost zero ...is this a tactical fund? is this a safe for a person who has already retired?

Cash
69.07%
Convertibles
0.00%
Domestic Bond
0.00%
Preferred Stock
0.03%
Foreign Bond
0.00%
Foreign Stock
9.95%
Others
0.15%
Domestic Stock
20.80%

alex_686
Posts: 3605
Joined: Mon Feb 09, 2015 2:39 pm

Re: question on wells Fargo Target 2020 CIT Class E3

Post by alex_686 » Mon Apr 16, 2018 1:43 pm

I would dig deeper. They may be getting exposure via derivatives like futures and forwards. These synthetic positions return the same as actually holding the underlying position but is often cheaper to implement for small funds.

dallasguru
Posts: 4
Joined: Sun Dec 24, 2017 12:57 pm

Re: question on wells Fargo Target 2020 CIT Class E3

Post by dallasguru » Mon Apr 16, 2018 2:03 pm

thank you alex_686.

My problem is in my vanguard outside investments, since above fund not available, I am using the equivalent Target 2020 Fund (WFOBX) which 45% equities and the rest in Bonds.

This is showing completely wrong asset allocation

alex_686
Posts: 3605
Joined: Mon Feb 09, 2015 2:39 pm

Re: question on wells Fargo Target 2020 CIT Class E3

Post by alex_686 » Mon Apr 16, 2018 4:16 pm

dallasguru wrote:
Mon Apr 16, 2018 2:03 pm
thank you alex_686.

My problem is in my vanguard outside investments, since above fund not available, I am using the equivalent Target 2020 Fund (WFOBX) which 45% equities and the rest in Bonds.

This is showing completely wrong asset allocation
Pull up the fund's Statement of Investment in the latest quarterly report. It is common for derivatives like futures and forwards to fall off of the summary report. A equity exposure would look like -35% S&P 500 futures, 35% cash. I have seen systems get confused, drop the futures part, and just display the cash part.

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