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Leaving The Benchmark Behind Gavekal KL Allocation Fund
The recent mini-blip down in the fund must have something? a lot? to do with the yen - it's been sliding, and Gavekal has 39% in apparently* unhedged Japanese stocks.
* Apparently, because the Principal Investment Strategies section of the prospectus doesn't mention currency hedging, the Principal Risks section includes currency risk, and there aren't any currency or currency swap investments in the holdings report. (JMHO, there should be a prospectus rule that includes clear disclosure of a fund's approach to currency management in the PIS section. Practice seems to be to say nothing if it's unhedged, and state the strategy only if there's any hedging involved.)
I am looking to sell GAVAX and re-buy @ Scottrade and Vanguard respectively. Was not available at Vanguard when I bought it. I've been trying to consolidate all my one-fund company funds at Vanguard.
Comments
* Apparently, because the Principal Investment Strategies section of the prospectus doesn't mention currency hedging, the Principal Risks section includes currency risk, and there aren't any currency or currency swap investments in the holdings report. (JMHO, there should be a prospectus rule that includes clear disclosure of a fund's approach to currency management in the PIS section. Practice seems to be to say nothing if it's unhedged, and state the strategy only if there's any hedging involved.)
I hope this fund continues to do well.