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Four Global Funds That Can Ease Your Mind

With bargains scarce, let managers with a huge canvas make the decisions.

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With stock markets having rallied to records nearly all over the world and bond yields almost universally low, bargain-minded investors have a tough time finding obvious places to put their money these days. In the words of Jeremy Grantham of GMO, "All the major asset classes--real estate, stocks, and bonds--measure expensive compared with their histories."

Grantham is known for his consistently gloomy outlook. But one doesn't have to completely agree with his dire view--he thinks everything is in bubble territory--to acknowledge the general truth of his assessment. Although many managers say there are still plenty of opportunities in the markets, the search can be daunting for an ordinary investor looking for cheap, overlooked areas.

With that in mind, we thought this an opportune time to present a few funds whose managers take the asset-allocation responsibility onto their own shoulders and have the broadest possible canvas to do so. As their category name indicates, such world-allocation funds can invest in either the United States or abroad and can choose from a variety of securities rather than being limited to just one asset class. Of course, even these managers can't magically uncover a hidden trove of dirt-cheap gems. But under the circumstances, many readers might consider such wide-ranging funds appealing at a time when making allocation decisions oneself can be particularly challenging.

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Gregg Wolper does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.