Some of the money that left bond funds may flow into balanced allocation funds, Barrons
' Brendan Conway writes. Conway is reporting on it because the niche grabbed the attention of Morgan Stanley
, whose analysts put out a note on the likelihood that these funds could attract some of the investors scared away from bond funds:
We believe that strong-performing balanced/allocation funds, alternatives, strong-performing equity funds, and more diversified credit strategies have potential to pick up some of the flow as it comes back into the system.
These funds have a wide range of returns and some funds have been performing strongly, such as the Invesco Balanced-Risk Alllocation Fund
]. Morgan Stanley's data found leading allocation funds' average return in the first half of 2013 was 3.6 percent but the Thornburg Investment Income Builder Fund
] has been up 6.9 percent and Capital Group
's [profile] American Funds Capital Income Builder Fund
has been up 5.1 percent. Meanwhile, Pimco[profile] All Asset Authority Fund
has been down 6.3 percent.
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