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Diversified growth: Plenty of protection but not nearly enough speed

Diversified growth funds promised the performance of equities without the crashes. But, as FN reports, they are being left behind

One of the asset management industry’s hottest sales performers of recent years, diversified growth funds, may have begun to look just a little less sizzling.

These funds, which aim to produce equity-like returns but with lower volatility, have appealed to pension schemes and other investors who saw their stock portfolios tumble in late 2008 and early 2009.

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