Diverse Dozen

A fund of funds with assets around the world
Magazine Contributor
2 min read

This story appears in the March 2007 issue of Entrepreneur. Subscribe »

Just as it takes a village to raise a child, it takes a well-diversified portfolio to withstand Wall Street. One way to diversify is via a fund that spreads its assets throughout the U.S. and abroad.

The Wells Fargo Wealth Builder Tactical Equity Fund (WBGAX) is made up of 12 different mutual funds; half are Wells Fargo funds, half are outside funds--the latter six with their own individual managers.

Galen Blomster, who has managed the fund since its inception in 1997, credits its success to a quantitative model that allocates the fund's assets. She notes that in mid-November, 50 percent of the fund's assets were invested internationally--36 percent in large-cap value funds, 9 percent in large-cap growth ones and 5 percent in small caps. "If this were a static allocation among the equity styles, you're just picking funds, and performance would probably be in the middle." At the end of last year, the fund was up more than 18.5 percent. At year-end in 2005, it was up 8.5 percent; 17.5 percent in 2004; and 31.4 percent in 2003.

This model doesn't change quickly but looks to market leaders when it does. It has stressed value over growth since 2001, international over domestic since 2002, and large cap over small since 2005. This fund's broad diversification is worth a cautious investor's look.

Dian Vujovich is an author, syndicated columnist and publisher of fund investing site www.fundfreebies.com.

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