August 15, 2012
Value Line Asset Allocation Fund (VLAAX) has been added to the Schwab Mutual
Fund OneSource Select List.
The fund uses 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, according to Stephen
Grant, the fund’s manager. “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,” Grant said.
Investors are interested in a fund
that can shift assets back and forth among stocks, bonds and cash to seek
better opportunities or manage risk as market conditions warrant, said Tom
Sarkany, marketing director for Value Line Funds. Value Line President Mitchell
Appel calls the vehicle an aggressive allocation fund.
As of June 30, the fund held 73%
in stocks, 23% in bonds and 4% in cash. The fund is one of seven asset-allocation
funds among Schwab’s 23 third-party funds in the Additional Fund Categories
Investments can be made in the
fund for a minimum of $1,000; there is no load and no transaction fees. More
information is available here.