Extreme DiversificationFunds Had To Have
Over the past three years these tactical asset allocation funds managed to improve returns without taking on much added risk.
Ivy Asset Strategy
THREE-YEAR ANNUALIZED RETURN*: 2.52%
COMMENT: Cut stocks deeper than most in 2008, to about one-third of assets. Stayed out of risky bond niches.
BlackRock Global Allocation
THREE-YEAR ANNUALIZED RETURN*: -0.05
COMMENT: Fund is adding convertible bonds. In 2008 it managed to avoid consumer and financial sector blowups.
VALIC Company I Global Strategy
THREE-YEAR ANNUALIZED RETURN*: -0.70
COMMENT: The wide-ranging fund owns everything from Korean government bonds to France Telecom shares.
MFS Global Total Return
THREE-YEAR ANNUALIZED RETURN*: -1.26
COMMENT: Stuck to defensive stocks in major markets in 2008, and shunned risky emerging markets and junk bonds.
First Eagle Global A
THREE-YEAR ANNUALIZED RETURN*: -1.33
COMMENT: The fund's managers follow a value strategy. Holdings include gold bullion and Japanese equities.
Data: Morningstar; funds had to have at least $410 million in assets and be open to retail investors
*Returns as of May 11