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Thanks for the shout Scott. Been watching for it. No plans to purchase now - but most eager to look over prospectus & accompanying lit as time allows (kinda busy at present:-) Thanks again.
The fund-of funds item makes me skeptical. Don't like that stuff. And a stake in a hedge fund? Hmmmmmm. I'd love to know more about it, so I'll click the link above. And I hope this conversation continues.
IMO, they should have made PRWCX, a global fund. A value oriented fund, proven manger though not for a very long term, with global mandate is a very good combo.
Mgr of this fund is on the panel for their multi-asset fund panel and I think he is going to succeed the current manager of those funds (Spectrum serios and personal strategy series). No very interesting fund.
Reply to @MaxBialystock: Effectively, this is a T Rowe Price global balanced fund that can devote 10% to alternatives, which include hedge funds. "Under normal conditions, the fund’s portfolio will consist of approximately 60% stocks; 30% bonds, money market securities, and other debt instruments; and 10% alternative investments."
From MFO: "T. Rowe Price Global Allocation Fund will seek long-term capital appreciation and income through a broadly diversified global portfolio of stocks, bonds, cash and alternative investments. The baseline asset allocation will be 60% stocks, 30% bonds and cash and 10% alternative investments. They’ll actively adjust those allocations based on its assessment of U.S. and global economic and market conditions, interest rate movements, industry and issuer conditions and business cycles, and so on. They may invest in publicly-traded assets, but also derivatives, Price funds, unregistered hedge funds or other private or registered investment companies. Normally half of its stocks and one third of its bonds will be non-US, though the managers will hedge their currency exposure. The fund will be managed by Charles Shriver. He joined Price in 1991 and is the lead manager for their Balanced, Personal Strategy and Spectrum funds. He has between $500,000 and $1 million invested in those funds. The minimum initial purchase is $2500, reduced to $1000 for IRAs. Expense ratio will be 1.05%."
Lastly, from the prospectus regarding alternatives: "The fund invests in hedge funds to provide exposure to alternative investments which, in the opinion of T. Rowe Price, have the potential to produce attractive long-term risk-adjusted returns and exhibit a relatively low correlation of returns to more traditional asset classes. The fund’s alternative investments are expected to move in directions unrelated to movements in the major equity and bond markets, thereby enhancing the fund’s overall diversification and offering potentially greater downside protection than typical equity investments."
I think the fund is going to have to highlight the details of the alternative investments in reports, as with a fund like this, one has to really dig to find what it is (I only found that it was a fund-of-funds by looking under some college endowment program that has an investment in it.)
Reply to @mrc70: Good idea; that'd be an excellent fund. To pull it off, though, Price would have to hire some new foreign stock managers. Their existing ones are mainly growth-oriented, and mediocre at best.
I've been half-arsedly looking for a global allocation fund, and GAL has the most interest of the ones I've looked at to this point. Unfortunately it's fairly new and very thinly traded so far. Uses SPDR ETFs tactically, and seems pretty sophisticated.
I looked at TRP Glob. Allocation portfolio. Not to my liking, like the taste of kale or swiss chard. I decided to get into TRAMX at the RIGHT time last summer, and it's made me happy. My other TRP fund is PREMX. The monthly divs. just get plowed back, still. This bond-hell we are in shall run its course and we shall eventually rise out of it. I suppose it really is a matter of fund-portfolio turnover, to grab better rates as they rise, coming up, as the days go by. In the meantime, "bond-hell" is more bearable with those pay-outs coming 12 times a year, plus there is normally a year-end bonus.
Comments
Holdings are now available on Morningstar and the T Rowe Website.
In terms of the alternative aspect of it, 7% of the fund is in Blackstone Partners Offshore,a hedge fund fund-o-funds.
Mgr of this fund is on the panel for their multi-asset fund panel and I think he is going to succeed the current manager of those funds (Spectrum serios and personal strategy series). No very interesting fund.
From MFO: "T. Rowe Price Global Allocation Fund will seek long-term capital appreciation and income through a broadly diversified global portfolio of stocks, bonds, cash and alternative investments. The baseline asset allocation will be 60% stocks, 30% bonds and cash and 10% alternative investments. They’ll actively adjust those allocations based on its assessment of U.S. and global economic and market conditions, interest rate movements, industry and issuer conditions and business cycles, and so on. They may invest in publicly-traded assets, but also derivatives, Price funds, unregistered hedge funds or other private or registered investment companies. Normally half of its stocks and one third of its bonds will be non-US, though the managers will hedge their currency exposure. The fund will be managed by Charles Shriver. He joined Price in 1991 and is the lead manager for their Balanced, Personal Strategy and Spectrum funds. He has between $500,000 and $1 million invested in those funds. The minimum initial purchase is $2500, reduced to $1000 for IRAs. Expense ratio will be 1.05%."
http://www.mutualfundobserver.com/2013/04/april-2013-funds-in-registration/
Lastly, from the prospectus regarding alternatives: "The fund invests in hedge funds to provide exposure to alternative investments which, in the opinion of T. Rowe Price, have the potential to produce attractive long-term risk-adjusted returns and exhibit a relatively low correlation of returns to more traditional asset classes. The fund’s alternative investments are expected to move in directions unrelated to movements in the major equity and bond markets, thereby enhancing the fund’s overall diversification and offering potentially greater downside protection than typical equity investments."
I think the fund is going to have to highlight the details of the alternative investments in reports, as with a fund like this, one has to really dig to find what it is (I only found that it was a fund-of-funds by looking under some college endowment program that has an investment in it.)
I've been half-arsedly looking for a global allocation fund, and GAL has the most interest of the ones I've looked at to this point. Unfortunately it's fairly new and very thinly traded so far. Uses SPDR ETFs tactically, and seems pretty sophisticated.