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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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World Allocation Fund With Low Risk



  • Reply to @Soupkitchen: The concept used by Janus in these funds is not anything new. Plus, after all the illegal issues the company has had over the years, I personally will not consider any of their funds. There are plenty of very good REAL global allocation funds out there run by other companies. JMHO
  • I was lucky enough to be able to get into FEBIX - First Eagle Global Income Builder Institutional Shares. I was able to avoid the $1M minimum because I have a Fidelity 401k Brokeragelink account.

    The fund is like a cross between SGENX and TIBIX and it has a fairly moderate allocation/balance. TIBIX holds a fairly high stock allocation and when it has held some bonds - it tended to be on the lower quality end - which is why the fund got rocked pretty hard in 2008 for an allocation fund.

  • Low risk, World fund with Asia exposure, hmmm. Not an easy order. Although it does not have that much in Asia, you might want to check out WAGTX. It is probably one of the lesser known Wasatch funds, still open, will hold anywhere from small to large cap and does well. It is usually about 50% US, has a high amount of cash right now. Wasatch is not averse to doing that when they don't see stocks at a reasonable value they like. I own it and am fond of it.
  • edited July 2017
    RPGAX ;has performed well and Fidelity now has it available NTF. However the ER is very high @1.15. When I look at RPBAX which carries an of ER .64, I think I would do better by adding a little more international stock and foreign bond to it. But don't know what I might add to take place of the Blackstone Hedge fund Solutions

    I am seeking opinions on best way to mimic RPGAX at a lower cost.
  • Over at M* boards, CCAPX (Chiron Capital Allocation) has been topic of conversation - newer World Allocation fund that has done fine in its very short life. Its on my watchlist.
  • We use TIBIX, MALOX, and RPGAX. Expenses for these are 0.86%, 0.79%, and 0.98%, all below 1%, which is ok for an active allocation fund. For expenses, look for NET expense ratio, since this is the actual expense investors pay. It is always available in the fund's annual report. RPGAX was not around in 2008, but the other two struggled even though they were better than the S&P.
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  • I just cannot get excited about RPGAX. A fund of other funds. From the "Department of Redundancy Department."
  • @Crash: "I just cannot get excited about RPGAX. A fund of other funds. From the "Department of Redundancy Department." Well, well, well, I see you put on your big boy pants !
  • Uncle George Patton, now, I see, @Ted. Take THAT, you paper-hangin' sonofabitch! Great film. Brilliant military leader. VERY full of himself, too. I suppose that's very fitting, Ted-O.
  • edited July 2017
    @Crash @Ted

    RPGAX a fund of funds???
    24% of holdings are other TRPrice funds, yes. But, the fund has 1,361 holdings indicated.
    Hardly a fund of funds, IMO.
    This is a young fund, but the 3 year return is at 5.2%, versus a category average of 2.3%.
    The fund is #13 on a long list of "world allocation" funds.
    Don't own the fund, will not likely ever own the fund; but to claim the fund to be a "fund of funds" indicates light research.
    Dig a little deeper, eh?; lest one gets caught with their pants down.

  • beebee
    edited July 2017
    Vanguard has a Global Minimum Volatility Fund, VMVFX.
  • TedTed
    edited July 2017
    @catch22:"Dig a little deeper, eh?; lest one gets caught with their pants down." That's just what you need to do. I simply linked U.S. News's & World Report ranking of 42 (WA) Funds. It was Crash who stated "I just cannot get excited about RPGAX. A fund of other funds. From the "Department of Redundancy Department." Catch22 you need to look before you leap !
    Ted :(
  • OK, then. I DID in fact look only as far as the top 5 holdings in the RPGAX portfolio at Morningstar--- under the assumption that a fund's top holdings gave an indication of the meat and intent of how the fund will be comprised and managed. So, I stand corrected. :) ...Silly me, using immediately identifiable indicators, and thinking that such things would correspond to reality....
  • American Funds Capital World Growth and Income Fund could fit the bill. You can put your money alongside the other $90 billion.
  • CWGFX has a sister fund that is world allocation. CAIBX is available likely available NL, NTF at Fidelity. Now it is at 22% bond which is fairly low. About 50/50 US/Int equity with heavy focus on dividends, hence name Capital Income Builder. American funds have been solid performers and many are no load on Fido platform.
  • Interesting thread and some great selections. I own SGENX and I have no reason to change. Plus I'm not a toe-hold investor so no plans to add funds for collection purposes, but out of all these funds mentioned, RPGAX is most interesting to me. I'm partial to the consistency and quality of TRP funds any how.
  • I prefer global equity allocation funds MWEFX
  • I happened to know the PMs behind GAOSX. this is a true global all, with at least 40% non-US exposure across various asset classes. They tactically stopped hedging majority of their currency exposures earlier this year and bought calls on Eurostoxx which contributed to outperformance. The lead PM is thinking outside the box and has a global multi-asset platform at his fingertips. For what it's worth of course.

    Separately, by skimming the previus responses, i see that many continue to advocate for MAPIX. for the full disclosure, i like and use this fund. Having said this, i think Will's goal is currently to derisk. he is using this tremendous equity run up to switch from a 100% equity fund to a 60/40 risk profile of a diversified global offering within his sizable portfolio. There is truly nothing wrong with that. The larger one's nest egg is, the less risk one could and should take to achieve his/her goals.

    Best wishes, fa
  • I Own What I Consider 4 Low Risk World Allocation Funds. CCAPX - BBALX - MFWTX - TRXIX.
  • Based on how WHGIX behaved in the recent pretend sell-off, I think it is a mighty good fund while not true global allocation. I'm tempted to invest in the global version of the fund once it is available at some brokerage.
  • edited July 2017

    In my global hybrid sleeve found in the growth & income area of my portfolio I hold two world allocation funds CAIBX and TIBAX. The third fund PMAIX is classifed as an asset allocation (30% to 50% equity) fund but it has good weightings towards foreign securties (both stocks and bonds). I look for good yield generation from most of my funds and these three funds deliver with yields of 3.31%, 3.73% and 4.67% respectively. Year-to-date the sleeve as a whole is up about 9.2% and accounts for about a 25% weighting in the growth and income area which in turn makes up about 35% of the overall portfolio. The portfolio itself has had a year-to-date investment return of about 9.0% while, my bogey, the Lipper Balanced Index has returned about 8.3%.

    Currently, my three hybrid sleeves consists of 19 funds and when combined make up about 45% of my overall portfolio

  • edited July 2017
    While I'm a fan of world allocation strategies with the right manager, I often wonder how to fit them in one's portfolio as their allocations can fluctuate, so you might not realize how much equity or bond exposure you have in total. Also, in the cases where the manager can short or bet against asset classes, how do you avoid having funds bet against each other, thus cancelling out their exposures and wasting money? So one fund might be long Treasury bonds and the other short Treasury bonds and the end result is actually less than nothing as there's a cost to executing such trades. I have the same concern, only moreso, with long-short and multialternative funds. There is also the risk of over-diversification I expect if you have too many of these funds as they may end up being allocated to everything under the sun. If you become overly diversifed you might as well just buy index funds and save on the management fees.
    All of that said, I am a fan of the concept as I think a good active manager should be given the flexibility to go anywhere to generate returns.
  • I would suggest carving a separate part of your portfolio for these kind of funds that have the ability to change their allocations as world economies and interest rates change. We call these "Dynamic" funds, and do not try to parse their holdings into asset classes like 40% international, 35% domestic, and 25% bonds. They are a separate asset class that we own for specific reasons. Funds that would not go here would be those that maintain by design or by decree a limited asset allocation variation, such as VWELX, VWINX, DODBX, VBINX, etc. These funds have parameters that prohibit their managers from much, if any, change in their stock/bond/cash allocation. Funds that WOULD fall into the Dynamic bucket would be OAKBX, PRWCX, WHIGX, FPACX, MALOX, RPGAX, TIBIX.
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