Call Me Global Al

Everyone’s pitching “Global Allocation” funds these days, the ten-year numbers on the few that have them look much better than your typical all-stock fund.  These funds can “go anywhere” both geographically and by asset class (bonds, stocks, gold, cash).  Even when they hold cash that cash doesn’t have to be in US currency per se.

There are only a handful of global allocation (or global al as we say on the factory floor) funds with long-term track records and the same manager throughout.  BlackRock’s Global Allocation fund is one of them.  Investment News caught up with long-time manager Dennis Stattman to talk about the new-found trendiness in his neck of the woods…

With $53.4 billion in assets, one would think that Mr. Stattman would be thrilled by the fund’s success and popularity. The fund has beat its peers over the past three-, five- and 10-year periods, according to Morningstar Inc.

Nevertheless, Mr. Stattman is worried. For one thing, he’s concerned that all the fund firms getting into the go-anywhere space may not understand how difficult it can be. And ultimately, he fears that clients may get hurt.

Recently, Mr. Stattman sat down with InvestmentNews’ Jessica Toonkel to talk about the fund, his process and what advisers need to ask managers when selecting a global-allocation fund.

With so many firms launching global-allocation funds, are you worried that these may becoming gimmicks?

I think it’s ironic that so many firms are now coming out with these products, because I believe that global flexible investing is what most investors ought to have at the foundation of their portfolios. It’s almost nonsensical to me to think, for most investors, that it would be any other way. Why would an investor not elect to choose from the broadest universe of investment possibilities that she or he could?

The industry is just very lately coming around to this, not because it thought it was a good idea but because of poor results that so many traditional mutual funds have delivered in terms of basic risk and return over extended periods of time — and also because the global flexible category has tended to be an exception to that trend.

Someone asked a colleague of mine, “Gee, what you are doing sounds really sensible. Why don’t all investors do that?” Because it’s really hard.

I’m a fan of the style for a lot of reasons, but with so many new ones popping up, now is a time to be selective, not generous with capital.  They won’t all get the “al” part right.

Source:

Five questions: Dennis Stattman (Investment News)

Tags:

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. bitcoin revolution app commented on Sep 30

    … [Trackback]

    […] Here you can find 71451 additional Information to that Topic: thereformedbroker.com/2011/07/07/call-me-global-al/ […]

  2. bitcoin era commented on Sep 30

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2011/07/07/call-me-global-al/ […]

  3. td banking login commented on Nov 10

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2011/07/07/call-me-global-al/ […]

  4. เซ็กซี่ commented on Jan 09

    … [Trackback]

    […] Read More here to that Topic: thereformedbroker.com/2011/07/07/call-me-global-al/ […]

  5. DevSecOps Services commented on Jan 18

    … [Trackback]

    […] There you can find 83548 additional Info on that Topic: thereformedbroker.com/2011/07/07/call-me-global-al/ […]