MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

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.

    Support MFO

  • Donate through PayPal

Jaffe and me, on Northern Global Tactical Asset Allocation

David_Snowball
edited November 2011 in Fund Discussions
Dear friends,

Chuck Jaffe, the distinguished senior columnist for CBS Marketwatch, was struck by the description that a Northern Funds representative used in describing the attraction of North Global Tactical Asset Allocation (BBALX). I reproduced the representative's description in my introduction to the fund:
Northern Global Tactical Asset Allocation (BBALX): up until August 1st, you could access to the best ideas of Northern Investment Policy Committee only if you had $5 million to meet this fund’s minimum or $500 million in assets at Northern. And then it became a retail fund ($2500) with an institutional pedigree and expenses (0.68%). Folks looking for a conservative core fund just stumbled onto a really solid option.
Chuck did a riff on the notion of "best ideas," playing with what that might imply about Northern's other funds and also about whether "best" in isolation is even meaningful. His column, which quotes part of our email exchange, is here, http://www.marketwatch.com/story/best-ideas-can-be-the-worst-investments-2011-11-06

I thought you might enjoy the exchange.

As ever,

David

Comments

  • AccipiterAccipiter
    edited November 2011
    .
  • InvestorInvestor
    David, it was an institutional fund with 5Mil minimum. Obviously, institutional investors did not like the fund as the fund has only $23Mil. Basically this is a failed fund which is re-purposed for retail markets for another life.
  • David_Snowball
    Hi, guy!

    Right, measured by the standard of attracting assets, it's a failure. Even though the strategy seems to work, I could imagine folks with a half billion in investments want something way more customized. Even if they get exactly the same investments, they're going to want it to look customized. Not sure that's an argument against folks with $50 investing in it.

    David
Sign In or Register to comment.