Colonial Mutual Funds of Boston launched a balanced fund Sept. 19 that provides diversification by investing in three major stock and three major bond markets.

The Colonial Strategic Balanced Fund is designed to carry minimal risk, while giving investors some exposure to stocks, which tend to produce higher returns.

"This strategic diversification strategy provides investors with a fund designed to be an all-weather fund for the '90s - a superior risk/return equation," said Carl Ericson, a co-manager of the fund.

About 60% of the Colonial Strategic Balanced Fund portfolio will be allocated to stocks ann about 40% to bonds. Assets will also be diversified across three sectors within each market.

The stock portion will invest in stocks of U.S. companies as well as foreign equities. The bond portion will hold U.S. government securities and high-yield U.S. corporate bonds and foreign bonds. Colonial, which manages $15 billion of assets, ranks fourth in sales volume among companies that distribute mutual funds through banks, according to American Brokerage Consultants, St. Petersburg, Fla.

The company also has strong ratings from Dalbar Financial Services, which gauges fund companies' service, products, and marketing support.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.