Extreme Diversification

Over the past three years these tactical asset allocation funds managed to improve returns without taking on much added risk.

Ivy Asset Strategy

SYMBOL: WASAX

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

SYMBOL: MDLOX

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

SYMBOL: VGLSX

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

SYMBOL: MFWTX

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

SYMBOL: SGENX

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

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