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Remember the old 6040.
Allocation all the traditional role right well our next guest says that the strategy.
Did not work for investors during the financial crisis and he has a new formula.
That he says can help make risky assets safer joining us now -- -- Fox Business explicit as Bernard -- Obama is the CEO and co-founder.
A global -- funds at this is interesting you say 6040.
Doesn't work any more -- What's -- C support it was a follow many decades ago and if you talk to investors is -- Hitachi are you know our clients and -- databases are concerned about.
Growing their savings are concerned about it really not not being worried about what happens of the market day in day out.
Odds -- better way to do it is to invest in asset classes are not correlated to perform differently carry you through -- different economic environment.
Let's talk about the global permanent ETF that you just -- brand new.
The mix up but it is very interesting we're showing our viewers on the screen what is in -- but talk about us.
How well essentially if you think about what drives returns -- essentially inflation and growth in the economy and say you want an asset allocation that it's gonna carry us.
Carry you through what -- or non inflationary environment.
Deflationary environment so things like.
I'm Paul cash equities and really be balanced so that you'll always have a piece of -- -- fall apart and you through regardless of what happens in the market.
I've -- licensing is that half of it is is government bonds that was the first thing and then also the gold and -- play it 25%.
Many would say.
That safety others would say risky shock of day of the fund going to commodity cycle -- -- which have been volatile what do you say to that.
Yet these are -- things like -- thinks like our long term government bonds and equities these are all volatile asset class is what makes this a special.
He's a combination of these proportion the fact that once you put these things together you know we're talking a lot of your -- side you know Warren Buffett.
Bill growers are talking about hey go all equity skull are all once increase -- -- allocation.
I'm really what you one is asset classes that regardless of what happens in economy right to carry you through.
-- -- last year 2011 there were 380 TF that relaunch 90% of them.
Really filled in to beef up as -- well I'm curious if you think -- -- worried that there's a lack of interest from investors as the market to crowd and I guess this is the question here data.
There -- a lot of beats -- out what we do as an asset manager we focused on areas of the market that are needed are not up provided by anybody else -- are not gonna confuse investors.
-- -- from our perspective you know -- -- fund that's obviously pretty new it's not been received very well so far.
-- in a marketplace but obviously you want.
You know things are -- for investors -- ad volume in and don't you know provide more of the -- let's have a fees as with the spot we'll -- what comes that the -- -- -- total expense ratio of the fund is 49 basis points and that's a very important consideration obviously when you're looking at your returns we're looking at and what -- about he's increasing my my -- and and -- and volatility.
Obviously fees are important aspect of -- you want to have cost effective off funds.
Can you also have been this has been something that's been in the news a lot lately social media you have a global acts social -- fun.
How is outperforming because many on the street had been disappointed.
By a lot of these recent IPOs social media IPOs that but quite aren't performing and I hate disabling -- has one of those right now.
Yeah we don't visit the social media space very different story much more speculative space -- -- a small location on a well diversified portfolio.
But you know won't buy initially to find them perform very well obviously following PR news -- the announcement.
Of the IPO from FaceBook they received a little bit of a pop lets people focus -- -- a -- also -- -- violations some of these companies.
I -- -- which is diversified across the globe across a number of companies -- -- trading at very reasonable multiples in a range self.
I -- to fifteen times earnings it was a much much slower than FaceBook so everybody understand faced with -- at a premium but obviously -- -- thoughts along.
Mostly help basement trade that's the big question hybrid -- the thank you very much good to see of course the CEO and co-founder of global -- funds.
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