"The ICI's statements regarding its role as, essentially, the spokesman for fund managements raises issues that involve the allocation of ICI dues between fund management and their funds, " Meyer Eisenberg , acting director of the SEC's division of investment management, told Forbes.
Jonathan Garner of Morgan Stanley says that recent fund flows into emerging markets represent a re-allocation of just three-hundredths of one percentage point of global wealth.
The standard bearer capital allocation model of a portfolio describes inherent risks to the fund, but not reward.
FORBES: The 'Secret Sauce' Of A Mutual Fund With A One-Track Mind
There are reasons to tilt your asset allocation, but the stock-picking expertise of a mutual fund manager is rarely one of them.
Other ETFs with a large Bank of America position include the iShares Dow Jones U.S. Financial Services Index Fund (IYG), with an allocation of nearly 9.8%, and the SPDR KBW Bank ETF (KBE) with an allocation of over 10.6%.
Some fund managers also worry that banks they sue will restrict their allocation of bonds in future offerings, while hedge funds fret that their prime brokers will close off finance to them, says David Grais, a lawyer who works with aggrieved investors.
ECONOMIST: Banks are under assault from buyers of mortgage securities
The other risk is that the fund invests in a selection of stocks that deviates from its asset allocation.
's Global Allocation fund in June sold more than 10, 000 shares, or 10% of its holdings.
This is where dynamic allocation of reserves across deals can play a big role in enhancing the capital-adjusted returns of a fund.
FORBES: Gravity, Biotech Returns, and Why The Median Matters
For those investors who want some exposure to foreign stocks, Bogle recommends an investment of no more than 20 percent of your total stock allocation, divided equally, into two Vanguard funds: Developed Markets Index Fund and Emerging Markets Index Fund.
The big key to this fund is, it is a rules-based asset allocation methodology, designed and has an objective of producing positive returns, regardless of the condition of the financial market.
应用推荐