Less correlation between asset classes means greater portfolio diversification with leads to greater returns with less volatility. A potentially non-correlated investment may provide a portfolio greater performance when other investments are experiencing difficulty.
The graph below shows how international equities are partially effected by the movement of the domestic equity market., where some alternative assets are far less affected by the domestic equity markets.
** Jan 2000 - March 2010 Raw data for model provided by Yahoo Finance
Past performance is not a guarantee of future results. Unusually high returns may not be sustainable. Investment return and principal value will fluctuate with changing market conditions so that shares, when redeemed, may be worth more or less than their original cost. Returns assume the reinvestment of all dividends and capital gain distributions.Investment return and principal value will fluctuate and it is possible to lose money by investing. Current performance may be lower or higher than the return figures quoted. There are risks involved with investing, including the risk of loss of principal. There is no assurance that the investment process will consistently lead to successful results. You should consider investment objectives, risks, and charges and expenses carefully before you invest.
