Being smart with $$ -- Fund managers mess up your allocation

Fund managers are nervous about falling oil prices.  So they now have 5% of their money in cash instead of what you are paying them to invest in (says a Bank of America Merrill Lynch survey as reported on CNBC.)  If asset prices fall you will be glad they aren't fully invested.  However, if prices rise from here, you will be angry at your poor results vs. an index fund.  The problem is that YOU have chosen your allocation to each asset class and when the fund manager is not investing according to his/her mandate, your portfolio allocation is now off.- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com