NEW YORK ( TheStreet) -- Struggling to protect their assets, investors have been turning to world allocation funds. The funds have the flexibility to dodge trouble spots and invest in promising stocks and bonds around the world. During the past year, investors have poured $24 billion into world allocation funds, according to Morningstar. That was a striking showing at a time when many stock funds suffered big outflows. Steady performance has been attracting the inflows. During the past five years, world allocation funds returned 3% annually, while the S&P 500 dipped into the red.Some of the most popular world allocation funds make sudden tactical moves, emphasizing emerging markets one year and U.S. bonds the next. But many funds in the category shift only slowly. The aim is to deliver steady results and not necessarily call every market move. Among the strongest performers in the steady group are Calamos Global Growth & Income (CVLOX), Forester Discovery (INTLX) and Loomis Sayles Global Equity and Income (LGMAX). These funds have all used unusual strategies to cope with difficult markets.
World Allocation Funds Dodge Trouble Spots
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.