asset allocation fund


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Asset Allocation Fund

A mutual fund with a portfolio mixing stocks, bonds, and cash equivalents in different types of securities. This is done to diversify the fund and avoid the volatility in any one market. There are three basic types of asset allocation funds. Balanced funds maintain a more-or-less fixed ratio of stocks and bonds. Life-cycle or target date funds start with higher-risk investments, but move toward lower-risk as the investor approaches some pre-determined date, usually retirement. Finally, life-style funds are actively managed according to an investor's or broker's specifications and market conditions.

asset allocation fund

An investment company that varies the proportion of its portfolio devoted to stocks, bonds, and money market securities in order to reduce the variability of returns and to take better advantage of different segments of the securities markets. An asset allocation fund is designed to save individual investors from being required to alter their investment mix in response to changes in market conditions.
References in periodicals archive ?
The problem with asset allocation funds is that there is too much variety.
In other words, some asset allocation funds employ strategic asset allocation to broadly diversify with relatively fixed-mix asset proportions invested in traditional as well as nontraditional asset classes.
Another fund that has been finding an audience in retirement plans is the John Hancock Alternative Asset Allocation Fund, a fund of funds that invests in alternative asset classes, including, but not limited to, currencies, global real estate, commodities, natural resources, and emerging-market debt.
On the following pages, PLANSPONSOR's fourth annual Asset Allocation Funds Buyer's Guide will give you what we hope is a meaningful starting point for your continued evaluation of these offerings.
GMO manages the master funds in which the Wells Fargo Advantage Asset Allocation Fund and the Wells Fargo Advantage Absolute Return Fund invest.
But the smaller-profile Cambria Investment Management, which runs five ETFs under the stewardship of investment maverick Mebane Faber, has beat the big boys to the punch: His new asset allocation fund sports the low, low price of 0.
The John Hancock Global Absolute Return Strategies Fund is offered as a stand-alone member of the John Hancock family of retail mutual funds, and is also a component of the John Hancock Alternative Asset Allocation Fund (JAAAX), as well as several of the John Hancock Lifestyle Funds.
CHICAGO -- Northern Trust announced today that it has opened its Northern Global Tactical Asset Allocation Fund (BBALX) to individual investors.
The new mutual fund is the firm's most broadly diversified asset allocation fund.
The funds will invest solely in their three broad market component funds (Vanguard Total Stock Market Index Fund, Vanguard Total International Stock Index Fund, and Vanguard Total Bond Market II Index Fund) and gradually eliminate exposure to their actively managed component funds (Vanguard Asset Allocation Fund and Vanguard Short-Term Investment-Grade Fund).
Specifically, the agency assigned a "5" ranking to Pak Oman Islamic Asset Allocation Fund and a "3" ranking to Pak Oman Advantage Asset Allocation Fund.