During 2013's rising stock market, allocation funds with an equity-heavy tilt tended to do well, but that wasn't necessarily the main feature leading to the success of this year's Allocation Fund Manager of the Year nominees. True, two of this year's candidates kept a relatively sizable stake in stocks compared with their peers, but it took more than that to earn a nomination. The teams that made the list plied thoughtful asset-class allocations alongside solid security selection.
The teams and managers nominated this year manage funds that are diversified across multiple asset classes--such as stocks, bonds, commodities, and real estate--and earn Morningstar Analyst Ratings of Gold or Silver, reflecting the analysts' conviction that the funds will be able to outperform their peers on a risk-adjusted basis over a full market cycle. The nominees have navigated multiple asset classes with aplomb, helping investors earn large returns in 2013, as well as over the long term.
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Kathryn Spica, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.