Fund of the Week: Blackrock Global Allocation Fund (MDLOX)

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Fund of the Week: Blackrock Global Allocation Fund (MDLOX)

Stock Chart on Blue
Asset diversification is the name of the game this week. With $55.1 billion in net assets and 985 holdings, the Blackrock Global Allocation Fund offers investors access to global equity and bond markets with an 18% cash cushion. An opportunistic approach, this fund has a 75% turnover rate, and 9.7% of its portfolio value is in its top 10 holdings.

Inside the Fund

Type of Fund

This fund is an open-ended retail mutual fund with a $1,000 minimum investment requirement for both standard and IRA accounts.

Manager Profile

Dan Chamby co-manages the fund and is a CFA charter holder. Previously employed with Merrill Lynch Investment Management and Fujitsu in Japan, Chamby’s global experience is invaluable. He has also worked in credit and money market roles at Bank of New York Mellon.

Historical Performance

MDLOX Performance Chart
MDLOX’s year-to-date performance is 4.4%, which puts the fund in the 1st quintile for the category. This is a rise from the previous year’s performance numbers where the fund sat in the 5th quintile. In 2012 and 2013, the fund posted double digit returns.

Dividend Analysis

The fund is not an income vehicle, with a conservative dividend yield of 0.3% and a semi-annual payment frequency. Payment months are July and December.

Asset Allocation Weightings

The attractiveness of this fund is its diversified approach to asset allocation. Current weightings are:

  • 56.19% Stocks
  • 19.82% Bonds
  • 18.27% Cash
  • 2.76% Other
  • 1.56% Preferred Stocks
  • 1.41% Convertible Bonds

Portfolio Sector Weightings

MDLOX Portfolio Sector Weightings
Relatively balanced across all sectors, the Blackrock fund sits in the 3rd and 4th quintiles for most of its equity weightings.

Top 10 Holdings

The top holdings for the fund are made of a combination of bonds, preferential and common stock. There is no weighting over 1.7% with the fund holding U.S., Australian, British, Italian and Mexican government debt.

Concerns

The primary concern of the fund is the exposure to Italy debt. Current developments in Greece could affect debt markets globally. On the equity side, the fund has a 4.57% basic materials weighting, which could influence overall performance.

The Bottom Line

The Blackrock Global Allocation Fund (MDLOX) has an alternative approach to investment with the ability to invest across a wide range of asset classes and emerging sectors. The expense ratio of 1.13%, however, puts the fund in the expensive bracket and the 5th quintile for its category. This should be taken into account.

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Stock Chart on Blue

Fund of the Week: Blackrock Global Allocation Fund (MDLOX)

Asset diversification is the name of the game this week. With $55.1 billion in net assets and 985 holdings, the Blackrock Global Allocation Fund offers investors access to global equity and bond markets with an 18% cash cushion. An opportunistic approach, this fund has a 75% turnover rate, and 9.7% of its portfolio value is in its top 10 holdings.

Inside the Fund

Type of Fund

This fund is an open-ended retail mutual fund with a $1,000 minimum investment requirement for both standard and IRA accounts.

Manager Profile

Dan Chamby co-manages the fund and is a CFA charter holder. Previously employed with Merrill Lynch Investment Management and Fujitsu in Japan, Chamby’s global experience is invaluable. He has also worked in credit and money market roles at Bank of New York Mellon.

Historical Performance

MDLOX Performance Chart
MDLOX’s year-to-date performance is 4.4%, which puts the fund in the 1st quintile for the category. This is a rise from the previous year’s performance numbers where the fund sat in the 5th quintile. In 2012 and 2013, the fund posted double digit returns.

Dividend Analysis

The fund is not an income vehicle, with a conservative dividend yield of 0.3% and a semi-annual payment frequency. Payment months are July and December.

Asset Allocation Weightings

The attractiveness of this fund is its diversified approach to asset allocation. Current weightings are:

  • 56.19% Stocks
  • 19.82% Bonds
  • 18.27% Cash
  • 2.76% Other
  • 1.56% Preferred Stocks
  • 1.41% Convertible Bonds

Portfolio Sector Weightings

MDLOX Portfolio Sector Weightings
Relatively balanced across all sectors, the Blackrock fund sits in the 3rd and 4th quintiles for most of its equity weightings.

Top 10 Holdings

The top holdings for the fund are made of a combination of bonds, preferential and common stock. There is no weighting over 1.7% with the fund holding U.S., Australian, British, Italian and Mexican government debt.

Concerns

The primary concern of the fund is the exposure to Italy debt. Current developments in Greece could affect debt markets globally. On the equity side, the fund has a 4.57% basic materials weighting, which could influence overall performance.

The Bottom Line

The Blackrock Global Allocation Fund (MDLOX) has an alternative approach to investment with the ability to invest across a wide range of asset classes and emerging sectors. The expense ratio of 1.13%, however, puts the fund in the expensive bracket and the 5th quintile for its category. This should be taken into account.

Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Popular Articles

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.


Read Next