The thing about LSBDX is the fund's weightings are not fixed.  The fund can hold up to 20% anywhere, and another 20% in Canada.  The fact they are mostly in the U.S. is an indication that the managers see better values here than in other countries (and probably consider the U.S. dollar's decline versus some currencies to be overdone). 

I think a distinction needs to be made between an asset allocation system (which is whay El Erian is presenting) and a actively managed go-anywhere system of investing.  With AA you have set weights to various asset classes and regions, while with a go-anywhere approach you have no set weights, and at any given time may have a lot invested in a country, or nothing invested there. 

A fund like LSBDX may not be the best fit for a stringent asset allocation system, because the fund itself will shift a lot within its allowed allocation levels.  For what it's worth, I'm not convinced a strict asset allocation plan is necessarily the best choice. 

Ironically (or maybe not, since the world is not a static place), El Erian's own fund will clearly be a go-anywhere fund.