I have been looking for a lower risk Global Balanced fund and came across two that look interesting; I would appreciate any thoughts, ideas suggestions and/or recommendations!!
It will be in a taxable account and my time horizon is about 5 to 7 years. I would also prefer an NTF but am open to a Transaction Fee fund if it truly is worth the cost.
1) MBAAX/MPBAX - Morgan Stanley Instl Global Strategist (It is Load-Waived at Fidelity)
I found VERY little discussion on this fund. But what I have found looks decent and promising.
Metrics look pretty good as does its returns and risk/reward profile, SD and tax efficiency. Its composition seems to be a good mix of non-us and us stocks and bonds for the current and future environment (i.e. going forward).
I found two areas of concern:
a) The Gross ER of 1.64, but the Net ER is .99, which is fairly good for the category
b) There was also a management change beginning in 2011 but it appears to have been very positive: in 2011 and 2012 the fund ranked in the top 10% and YTD (2013) top 19%. This seems to be pretty good for a relatively lower risk global alloc MF.
2) PQIDX/PQIIX - PIMCO Dividend and Income Builder
A relatively new fund, began in 2012, so there's not much data to look at or review, although there is some discussion.
Also seems to have a good mix of non-us and us stocks and bonds for the current and future environment. It appears to be a little less tax efficient and slightly more volatile though. That's about all of the tangible info I have on this fund.
To sum up, I'm not looking for the highest returning MF in the category. I am looking for a lower risk global alloc fund with solid returns and risk/reward profile, not bloated AUM, reasonable ER, etc.
Does MBAAX/MPBAX and/or PQIDX/PQIIX fit this profile or are there better funds out there? Again, any and all thoughts, ideas, suggestions, recommendations are welcome!!
Thank you for your time and assistance!!