It seems that majority of smart allocation managers, tracked by MyPlanIQ on SmartMoneyIQ Managers, are putting full faith into central banks’ backstop to European crisis. It is surprising that amid recent market turmoils and economic weakness, most funds still maintain their risk asset allocations. Here are some noticeable funds: 

Leuthold Core Investment (LCORX)

Date IntlBond CASH USBond EmergStk USReits IntlStk USStk
2012-05-18 0.0 21.5 4.0 13.8 4.2 -0.0 56.5
2012-05-25 0.0 14.8 7.9 16.0 6.1 -0.0 55.2
2012-06-01 -0.0 0.0 22.0 11.3 4.7 1.4 60.6
2012-06-08 0.0 0.0 24.7 12.4 8.4 0.0 54.5
Comment: a slight reduction in stocks but that could be very much noise. 

GMO Benchmark Free Allocation (GBMFX)

Date IntlBond CASH USBond IntlStk USStk
2012-05-18 0.0 53.8 10.4 25.2 10.6
2012-05-25 0.0 60.6 5.2 28.8 5.5
2012-06-01 0.0 49.4 17.5 26.8 6.3
2012-06-08 0.0 64.0 0.8 26.2 8.9
Comment: nothing changed.


PIMCO All Asset (PASDX)

Date IntlBond CASH USBond IntlStk USStk
2012-05-18 0.0 26.7 41.1 29.1 3.1
2012-05-25 0.0 23.2 44.8 32.1 0.0
2012-06-01 0.0 56.7 13.1 30.2 0.0
2012-06-08 0.0 17.6 50.0 32.4 0.0
Comment: Rob Arnott is maintaining stable exposure in international stocks and US bonds. 
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PIMCO Global Multi-Asset (PGMAX)

Date IntlBond CASH USBond IntlStk USStk
2012-05-18 6.8 23.4 25.8 34.6 9.3
2012-05-25 26.3 35.4 -0.0 33.9 4.4
2012-06-01 17.3 0.0 44.3 30.6 7.8
2012-06-08 28.4 -0.0 35.8 27.8 8.0
Comment: PIMCO’s El-Erian has been steady but did reduce a bit in risk asset exposure (either through real allocation or through beta reduction). 

IVY Asset Strategy (WASYX)

Date IntlBond CASH USBond IntlStk USStk
2012-05-18 0.0 0.0 15.3 28.9 55.8
2012-05-25 23.9 -0.0 0.0 43.7 32.4
2012-06-01 5.4 0.0 12.6 37.3 44.6
2012-06-08 4.4 -0.0 14.7 35.3 45.6
Comment: the aggressive IVY managers are still maintaining aggressive stance in risk assets. 

Dreyfus Global Absolute Return (DGPIX)

Date IntlBond CASH USBond IntlStk USStk
2012-05-18 -0.0 56.5 0.0 18.0 25.5
2012-05-25 0.0 62.2 -0.0 10.2 27.6
2012-06-01 -0.0 65.3 -0.0 3.0 31.6
2012-06-08 0.0 71.7 0.5 2.3 25.5
Comment: Dreyfus absolute return is the only one that reduced its stock exposure in a meaningful way recently. 
All in all, smart money managers maintain a sanguine attitude amid market weakness. This indicates their beliefs that, in short term, Bernanke and other central bankers’ QEx will still provide backstops to stock markets. 
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