Fri, 29 Sep 2017
Poor timing has investor returns lagging in liquid alternatives.
Investors tend to capture more available returns in balanced funds due to a smoother ride.
Boring investments tend to keep people in their seats, which leads to better outcomes, says Morningstar's director of personal finance.
Fears of past market crises have investors selling the category despite its wide margins of safety and outperformance over its blend and value counterparts, says Morningstar's Shannon Zimmerman.
Morningstar's Russ Kinnel says now may be a good time to consider some highly rated actively managed funds that are again available to new investors.
Investors have been putting money back into bond funds as interest rates have unexpectedly dropped this year.
Oakmark International manager David Herro's closure of the fund is a preemptive move to taper asset flows and put shareholders first, says Morningstar's Shannon Zimmerman.
The fund's plain-vanilla focus on company fundamentals allows it to uncover value in any kind of stock and has contributed to its long-term outperformance, says Morningstar's Shannon Zimmerman.
Although major indexes remain elevated, these funds could be good places to put money to work in the present market environment.
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