The Value Line Asset Allocation Fund (VLAAX) has been added to the Schwab Mutual Fund OneSource Select List. The Value Line Asset Allocation Fund is one of seven asset allocation funds among the 23 third-party funds selected for the "additional fund categories" section of the OneSource Select List.
The fund is ranked in the top 12% of the Lipper Mixed Asset Allocation Growth Category for the 10-year period ending June 30, 2012, in the top 11% for the one- and five-year periods, and the top 3% for the three-year period.
The Value Line Asset Allocation Fund has been managed by Stephen Grant since 1993. "We use a model that compares stock values and interest rates, allocating more to stocks when valuations and rates are low and less when they are high," said Grant. "However, our stock selections have impacted performance more than asset allocation. We use a momentum strategy that looks at investor psychology and selects those stocks where investor sentiment is improving."
As of June 30, the fund held 73% in stocks, 23% in bonds and 4% in cash.
The Value Line Funds incorporate the proprietary Value Line Timeliness and Performance Ranking Systems in their process. Stocks selected for the Value Line Asset Allocation Fund are primarily ranked 1 (best), 2 or 3 out of 5 by these systems, which tend to favor stocks with strong earnings and share-price momentum resulting in an aggressive-allocation fund with fast-growing companies. The fund also looks to the Value Line Asset Allocation Model for guidance on portfolio allocation as percentage of equity vs. fixed income holdings.
Third-party funds included in the Schwab OneSource Select List generally fall within the top 35 percent of all Charles Schwab Investment Advisory (CSIA)-evaluated funds within a given Morningstar category and receive the most favorable evaluations in their respective categories. The funds must be available without a load or transaction fee.
Actively managed funds on the Schwab Mutual Fund OneSource Select List are evaluated by CSIA based on a quantitative analysis of risk, performance, expenses, active share (when meaningful), assets under management and asset flows. CSIA also may apply additional qualitative factors to its analysis to enhance its overall evaluation of a fund.
OneSource Select Funds must generally have a minimum three-year performance track record and have at least $40 million in assets.
Mary Schroeder writes for Securities Technology Monitor.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access