Video Reports

Embed this video

Copy Code

Link to this video

Get LinkEmbedLicenseRecommend (-)Print
Bookmark and Share

By Alec Lucas | 10-27-2015 02:00 PM

A Sturdy Fund for Choppy Waters

Investing in a blend of stocks and bonds from across the globe, silver-rated American Funds Global Balanced offers resilient returns in a variety of market conditions.

Alec Lucas: Silver-rated American Funds Global Balanced (GBLAX) is a great option for risk-averse investors or those at or near retirement. 

It's well equipped to navigate choppy markets. The fund's veteran six-person management team includes one equity specialist, two fixed-income experts, and three balanced managers. 

The balanced managers rely on fundamental research rather than tactical asset-allocation calls to invest in either equity or fixed-income securities. Their decisions largely determine where the fund's equity exposure falls along its typical 50% to 70% range. They have proven adept at taking advantage of the market's opportunities. 

Beginning in March 2011, shortly after the fund's inception, it has beaten the world-allocation Morningstar Category norm in 43 of 44 rolling one-year periods through September 2015. And half of that time, it has placed in the category's top quartile. 

These results have come in somewhat varied conditions as concerns about sovereign debt hit equities hard in 2011, while easy-money policies boosted them in 2013. Impressively, the fund has also compiled this record while keeping risk in check.

{1}
{1}
{2}
{0}-{1} of {2} Comments
{0}-{1} of {2} Comment
{1}
{5}
  • This post has been reported.
  • Comment removed for violation of Terms of Use ({0})
    Please create a username to comment on this article
    Username: