Fidelity has adjusted the holdings in its Freedom Fund lifecycle line as well as other asset allocation portfolios to include more international stocks, commodities and TIPS. International exposure throughout all of the Freedom Funds will rise from an average of 20% to 30%, with exposure to U.S. stocks falling commensurately.

Fidelity said the changes are designed to improve the risk and return characteristics of the funds for the benefit of the more than five million shareholders who have invested nearly $90 billion in them.

“Since launching the Freedom Funds in 1996, we have regularly evaluated and tested the asset allocation and portfolio construction methodology, and we’ve made enhancements to the portfolios from time to time based on our findings,” said Derek L. Young, chief investment officer of the global asset allocation group at Fidelity Management & Research Co.

Young noted that non-U.S. markets now account for more than half of the exposure of the aggregate world equity market capitalization, world economies are increasingly interwoven, and foreign markets have improved information flow, thereby diminishing risks in long-term investing.

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