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Global Allocation Funds

Investing question: Does it make sense to own a global allocation fund if you already own US stock funds and International stock funds? Or do you think global allocation funds are best used instead of the aforementioned stock funds? If you do own a global allocation fund, what role does it play in your portfolio ? Thanks.


  • My portfolio has roughly 15% allocated directly to international and 30% directly to the US. I also have a global stock fund for another 20% which i figure allows the managers who hopefully know more than i to figure out where tree best values are and to adjust my overall weighting
  • I feel that global allocation is really a form of market timing, especially if the fund can hold lots of cash, as most can. Tough to do right, but so's stockpicking...

  • Allocation funds tend to hold bonds, so you could always add a bond fund or two ... or consolidate everything into an allocation fund or two. *shrug*
  • A lot depends (a) on you and (b) on the fund you pick.

    It makes sense to reallocate assets within your portfolio in response to market changes, tilting it if not flinging it from side to side. If the US market crashes, it might be time to pour assets into it. Sadly, I don't have the time or nerves to pull that off consistently so I trust the folks at FPA and Intrepid to do it for me.

    Some GA funds strike me as more disciplined than others. BBALX is entirely admirable in its combination of low costs and discipline in just making modest adjustments. LCORX is among the most disciplined when it comes to follow the data. FPACX and ICMAX offer different interpretations of an "absolute value" discipline which comes down to "don't buy stocks when you're not paid for the risk you're taking." Mr. Romick tends to wander further afield in pursuit of alternatives to equities, Mr. Wiggins is traditional in adding liquidity to the portfolio rather than adding different sorts of risk assets when small cap valuations are untenable.

    Folks like BBALX and LCORX are making macro decisions, FPACX and ICMAX are making micro ones in that they're not judging "the market" as much as they're saying "can't find any new stocks that fit our mandate so ..."

    For what that's worth,

  • I own domestic equity funds, international stock funds, and fixed income funds. I'm also not the smartest guy in the room, so I hedge my investing with a manager who I've researched and who has impressed me that he will do well. Jean Marie Evillard was the first one I went with; now I'm with one of his successors at CETAX. I'm also in one of his former " competitors" CCAPX. I suppose I'm in global allocation because that's where I started with SGENX but I also like the idea that I'm not limiting their investment world since I'm using them to help me.
  • CETAX is now NTF... need to look into it.
  • CETAX seems to be ntf at Schwab E-trade, Vanguard but not Fidelity
  • I wanted to start a new discussion but I see no link that will allow me to do that. I'm sure it must be there, but I just don't see it.
  • Now I see and wonder how could I have missed it.
  • We don't happen to use a global allocation fund, but we do use a moderate allocation fund (50 to 70% equity) to do most of the heavy lifting for us at around 60% of our portfolio. Then we use a few other funds to fill in the gaps such as global smallcap. We also use a bond fund to keep our equity to fixed income ratio where we want it.

    So, while not a GA fund, same principle.

    T. Rowe Price has a decent GA fund as well in RPGAX.
  • edited April 2018

    My global hybrid sleeve holds my global allocation funds and accounts for about 10% of my overall portfolio. The sleeve produces a good dividend yield at about 4.25%. The funds held are CAIBX, PMAIX & TIBAX. PMAIX is classified by M* as a 30% to 50% equity allocation fund but currently has 30% in foreign equity and 17% in domestic equity, 31% in bonds, 13% in other assets and 9% in cash. With this, I felt its best fit was in my global hybrid sleeve.

    In addition, the sleeve has a turnover ratio of about 75%. So, the funds seem to be active in changing their holdings and their positioning as the global investment enviornment changes. Also, within my portfolio, the sleeve seems to be the most adaptive to the ever changing market conditions due to the wide spectrum of assets the fund managers can choose from for investment.

    With this, there is indeed a fit for global allocation funds within my portfolio.

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