Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Rekenthaler Asks: Can You Be Too Diversified?  Not Rated 5.0 Email Routing List Email & Route  Print Print
Tuesday, June 18, 2013

Rekenthaler Asks: Can You Be Too Diversified?

News summary by MFWire's editors

Investors are told they can avoid "diworsification," or being too diversified, by holding fewer active managers and seeking funds that have large positions in relatively few investments when they do hold active managers.

However, that prescription doesn't suit most investors, John Rekenthaler of Morningstar says. Only investors who are willing to take on additional idiosyncratic risk and have strong knowledge of the funds should concentrate their investments.

[profile]'s second launch of target date funds, this time more conservative, doesn't quite satisfy Rekenthaler, who quoted Ron Surz, president of Target Date Solutions:

"In 'Dante's Inferno, 'the hottest place in Hell is reserved for those who won't take a stand,' says Surz. 'Moving down to 42% [equities] at the target date is still pretty risky. I think [T. Rowe Price is] not getting the idea.'

For his part, Surz recommends a 0% weighting in stocks at the target date."  

Edited by: Casey Quinlan


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

5.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use