The Quest for Good No-Load World-Allocation Funds
Pickings are slim, so consider building your own.
In February, American Funds started a new fund that invests in stocks and bonds all over the world. American Funds Global Balanced (GBLAX) is only the second stock-holding fund that American has launched in the past decade. With American's team-managed approach and low expenses, the new fund will probably be a winner.
For some reason, funds that levy sales charges, as the American funds do, dominate the world-allocation category. The best include BlackRock Global Allocation (MDLOX), run by Dennis Stattman; IVA Worldwide (IVWAX), managed by Charles de Vaulx and Chuck Lardemelle; and First Eagle Global (SGENX), run by Abhay Deshpande and Matthew McLennan.
On the no-load side, Fidelity Global Balanced (FGBLX) has been a decent performer the past three years, during which most of its current managers have been on board. But I'm lukewarm on the fund because it hews closely to the MSCI World Index for its sector and regional exposure. That largely keeps it out of emerging nations and prevents its managers from moving to the markets that offer the best opportunities.
Russel Kinnel has a position in the following securities mentioned above: LSBRX, ARTGX. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.