Permanent Portfolio Family of Funds Comprehensive Review

The Permanent Portfolio Family of Funds is a unique investment option that offers a range of benefits to investors. The funds are designed to provide a stable and consistent return over the long-term, regardless of market conditions.

The Permanent Portfolio Family of Funds has been around since 1982, with a proven track record of stability and growth. This fund family has been managed by its founder, Harry Browne, and later by his protégé, John Browne.

The funds are known for their conservative approach, with a mix of stocks, bonds, gold, and cash. This allocation is designed to provide a balance of growth and stability.

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The Permanent Portfolio Family of Funds has a complex fee structure, which can impact your investment returns. The expense ratio for Permanent Portfolio Permanent C is high at 1.82%, making it 78% higher than its category average.

High expense ratios can reduce your rate of return, and excessive fees can be difficult to overcome. I've seen this firsthand with other investments where high fees have eaten away at returns.

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The Permanent Portfolio Permanent C has a portfolio turnover rate of 15%, which is relatively low compared to the average of 49% for the Moderate Allocation category.

Here's a breakdown of the fees associated with Permanent Portfolio PRPDX:

The expense ratio is a crucial factor to consider when evaluating a fund's performance. It measures how much of a fund's assets are used for administrative expenses and operating expenses, including adviser fees and fees for transfer agent and custodial services.

Permanent Portfolio Permanent C has an expense ratio of 1.82%, which is 78% higher than its category average, earning it an F grade.

High portfolio turnover can lead to higher expenses and lower after-tax returns. Permanent Portfolio Permanent C has a portfolio turnover rate of 15%, indicating it holds its assets for around 0.1 years.

The average portfolio turnover for the Moderate Allocation category is 49%. This suggests that Permanent Portfolio Permanent C has a relatively low turnover rate compared to its peers.

In January 2025, Permanent Portfolio Permanent C returned 3.5%, earning it an A grade, as the Moderate Allocation category had an average return of 2.4%.

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When analyzing the capital gain distribution of an investment, it's essential to understand the frequency of these distributions. Annually is the most common frequency, where the capital gains are distributed once a year.

The frequency of capital gain distributions can vary significantly, as seen in the table below:

In some cases, the capital gain distribution frequency may not be as frequent as annually, but it's still essential to understand the distribution schedule to make informed investment decisions.

The Permanent Portfolio Family of Funds offers a range of investment options to suit different risk tolerance levels.

Each fund in the portfolio has a unique investment strategy, with the Permanent Portfolio Fund investing in stocks, bonds, gold, and foreign currencies.

The fund's investment mix is designed to be balanced and stable, with a target allocation of 25% to 75% of assets in stocks, 25% to 75% in bonds, 5% to 15% in gold, and 5% to 15% in foreign currencies.

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When looking at the distribution details of an investment, it's essential to understand the different types of returns and distributions it offers.

The YTD total return is 6.3%, which indicates the investment's performance over the past year.

Annualized total returns over 3 and 5 years are 11.4% and 11.2%, respectively, showing consistent growth over the long term.

The capital gain distribution frequency is annually, meaning investors can expect a distribution of capital gains once a year.

The net income ratio is -0.02%, indicating that the investment generates a small amount of net income, but it's not a significant portion of the overall return.

Here's a summary of the distribution details:

Dividend investors can expect a 1.5% dividend yield, and the dividend distribution frequency is also annual.

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Asset allocation is a crucial aspect of investing, and it's fascinating to see how different assets can impact your portfolio's performance. Stocks make up the largest portion of the allocation, weighing in at 51.55%.

Let's take a closer look at the asset breakdown. The table below provides a clear overview of the different asset classes and their respective weightings:

Cash, on the other hand, has a relatively low weighting of 12.82%, but it's essential to note that it can provide a safe haven during market downturns. In fact, a 7.92% loss is the lowest return recorded for cash, but it still managed to return 100% in the best-case scenario.

As we dive into the bond geographic breakdown, it's clear that the US market holds a significant weight of 27.92% in the overall portfolio.

The US portion of the bond portfolio has a return range of 0.00% to 77.71%.

Breaking down the geographic allocation, we can see that the US market is the largest contributor, while non-US markets make up a smaller portion of 7.63%.

Here's a summary of the geographic breakdown:

The non-US market, on the other hand, has a much lower return range of 0.00% to 15.37%.

The Permanent Portfolio Family of Funds has some impressive ratings and rankings. The YTD return is a strong 6.3%, ranking 1.47% in its category.

In the 1-year period, the fund's return of 25.6% is notable, but it ranks relatively low at 0.74% in its category. This suggests that while the fund has done well recently, it may not be the top performer in its category over the long term.

Here's a summary of the fund's rankings over different time periods:

C Grades are assigned to funds that don't quite meet expectations. The Permanent Portfolio fund received a C grade for its 10-year annual return of 6.7%, which is lower than its category average.

A C grade doesn't necessarily mean a fund is bad, but rather that it's not performing as well as others in its category. The Permanent Portfolio fund's C grade for its 10-year annual return is a notable example.

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The fund's 10-year annual return of 6.7% is actually lower than its category average, which is a significant factor in its C grade. This means that over the long term, the fund hasn't kept pace with its peers.

Here's a breakdown of the Permanent Portfolio fund's grades for different time periods:

As you can see, the fund's grades vary significantly depending on the time period. While it's performed well in the short term, its long-term returns are more lackluster. This is a common pattern in the investment world.

The Total Return Ranking - Trailing is a way to measure how a fund or investment has performed over time compared to its peers. It's a great way to see how a particular investment has stacked up against others in the same category.

One of the key things to look at is the rank in category percentage. This shows how a particular investment ranks compared to others in its category. For example, in the 1-year time frame, PRPDX ranked 0.74% in its category.

A low rank in category percentage doesn't necessarily mean an investment is bad, it just means it hasn't performed as well as others in its category. Conversely, a high rank in category percentage means an investment has performed well compared to its peers.

Here's a breakdown of the rank in category percentage for PRPDX over different time frames:

As you can see, PRPDX's rank in category percentage varies over different time frames. In the 10-year time frame, PRPDX ranked extremely high, at 96.38%, indicating that it has performed exceptionally well compared to its peers over the long term.

The Permanent Portfolio fund was established in 1982 by Terry Coxan and John Chandler, who drew inspiration from Harry Browne's concept of a permanent portfolio.

The fund's flagship fund was designed to neutralize high inflation by investing in precious metals, Swiss bonds, U.S. Treasury bills, and natural resource stocks.

Terry Coxan and John Chandler's Permanent Portfolio fund was more complex than Browne's original concept, with six asset categories instead of four.

The fund's asset categories included 35% in government bonds, 25% in gold and silver bullion, 15% in growth stocks, 10% in cash and Swiss francs, and 15% in energy, mining, and real estate stocks.

From 1982 through 2008, the fund's assets under management were less than $50 million, but they grew significantly in the following years, reaching $1 billion in 2007, $3.4 billion in 2008, and $5 billion in 2009.

As of 2012, the fund had $17 billion in assets under management with 20% invested in gold bullion and a relatively high 0.71% annual management fee.

The fund's poor shareholder retention in the 1990s was likely due to its performance during a prolonged bull market, as it "badly trailed" most stock funds.

However, during a volatile period for the overall stock market, the Permanent Portfolio fund averaged an 11 percent annualized return between 2001 and 2011, compared to a 1.6 percent annualized return for the S&P 500 index.

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The Permanent Portfolio Family of Funds has a notable expense ratio, which measures the amount of assets used for administrative expenses and operating expenses. The Permanent Portfolio Permanent C expense ratio is high, coming in at 1.82%.

High expense ratios can significantly reduce your rate of return, making it difficult to overcome excessive fees. This is especially true for active management, which normally comes with higher expense ratios than passive index management.

Permanent Portfolio Permanent C has a portfolio turnover rate of 15%, which is lower than the average portfolio turnover of 49% for the Moderate Allocation category. This lower turnover rate can help reduce expenses and potentially lead to higher aftertax returns.

The fund's low turnover rate is a positive aspect, but it's essential to consider the expense ratio, which is 78% higher than its category average. This makes the fund's expense ratio grade a F, indicating that it's one of the more expensive options in its category.