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
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