Balanced Managed: Who Held up Best in a Tough 3Q?

With markets plunging, are the funds in this sector earning their keep?

Christopher J. Traulsen, CFA 13 October, 2008 | 12:22PM
The third quarter was eventful to say the least. It featured major financial institutions failing or requiring government assistance in the US (Fannie, Freddie, AIG, Wachovia, etc), Europe (Fortis, Dexia), and the UK (Bradford & Bingley). We are, to be blunt, in the midst of a financial crisis of historic proportions and have seen major developed market indexes swing around by more than 8 per cent in a day, and the MICEX in Russia move by as much as 23 per cent in a day. The quarter was marked most of all by extreme volatility in the financials sector, but on a three month basis, it was actually slowing global growth and a resulting massive slump in resources shares that hurt the most. Investors shunned risk, and funds that favoured large-caps over small-caps, defensive sectors such as hea

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About Author

Christopher J. Traulsen, CFA

Christopher J. Traulsen, CFA  is director of fund research, Europe and Asia, Morningstar.

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