Spreading risk across classes gains fans for asset allocation funds

With investors seeking stability in volatile times, multi-asset funds are enjoying a surge in popularity

In turbulent times, asset allocation funds tend to gain popularity as investors seek diversification from a broader spread of risk via their multiple asset classes. Reflecting this trend and the market uncertainty of recent months, Standard & Poor's Fund Services has just published its largest- ever annual review of asset allocation funds, covering and rating a total of 119 funds. This is a 50% jump from the 2007 review which covered 79 funds, highlighting the importance of the sector in times of turmoil. The increase in rated funds came after a period of innovation following the introduc...