Address changing markets with a more active approach. Our asset allocation funds combine specialty diversifiers with traditional asset classes using active, tactical asset allocation.
First American Funds, Class Y, for the period ended 6/30/2010
For funds with at least a three-year history, a Morningstar Rating™ is based on a risk-adjusted return measure (including the effects of sales charges, loads, and redemption fees) with emphasis on downward variations and consistent performance. The Morningstar Overall Rating™ for a fund is derived from a weighted average of the fund's three-, five-, and 10-year (if applicable) risk-adjusted return measures and Morningstar Ratings metrics.
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*Investment performance reflects fee waivers. Without such waivers, total returns would be reduced.
Past performance does not guarantee future results.
These ratings are for Class Y shares only; other classes may have different performance characteristics.
We believe there are opportunities in every market. But traditional diversification may not be enough to address changing markets. Our insights combined with an active, tactical approach to asset allocation strategies may help you take advantage of evolving market conditions. We help you diversify differently by expanding beyond traditional asset classes to specialty diversifiers that offer new opportunities for growth while also helping to manage portfolio risk.
Our team of experts:
- Builds strategic portfolios for long-term results based on established research
- Expands beyond traditional asset classes to specialty diversifiers designed to help lower portfolio risk and increase returns
- Applies timely portfolio changes to help capture shorter-term, tactical opportunities
- Has the ability to act quickly and efficiently with in-house expertise
Number of Portfolio Allocation Shifts Each Year
As market volatility increases, the new opportunities or risks it creates call for more frequent tactical asset allocation changes.
Source: FAF Advisors, Inc.
Here are a few instances of our tactical portfolio allocation in action:
- March 2006: Overweight foreign stocks in view of a strong earnings growth, attractive valuations, and weakening U.S. dollar.
- September and November 2007: In three incremental steps, underweighted equities in anticipation of slowing economic growth.
- June 2008: Reduced exposure to commodities in response to developments indicating a downward trend in oil prices.
- March 2009: Reduced exposure to large-cap domestic stocks in anticipation of disappointing earnings reports.
- October 2009: Took profits by reducing overweight to large-cap domestic stocks as the S&P 500 Index rose sharply.
Innovative Packaged Diversifier
Take advantage of our active management approach. Our Asset Allocation Funds combine innovative specialty diversifiers with traditional asset classes to capture a variety of investment opportunities. We combine strategic asset allocation with well-timed portfolio adjustments to help you achieve your investment goals.
- Astute economic forecasting. Tactical recommendations are made by the Asset Allocation Committee, headed by our chief economist Keith Hembre.
- Extensive team experience. The Asset Allocation Committee is composed of our most senior investment leaders, including our CEO, head of equities, head of fixed income, and head of real estate.
- Pioneers in asset allocation funds. Our funds have more than a decade of history. They were among the first asset allocation mutual funds in the market. Their lead manager, David Cline, has been guiding the funds since their inception.
Committee members continually monitor market conditions. As short-term opportunities are identified, they underweight or overweight appropriate asset classes in the portfolios. The extent of these adjustments varies from fund to fund depending on each fund's risk parameters.
