It seems there are so many different types of Bond funds. short , Int, Long, total, Foreign. emerg.
Why not just buy a managed strategic bond fund where the managers allocate the bonds depending on the current best opportunities such as FSICX or other similar. It seems that management of these types will allocate appropriately rather than being married to a fixed plan according to a prospectus. I am trying to have a 50-60% bond/Equities and it is challenging to decide about the proper bond portfolio considering the the inevitable rise in interest rates and the global climate. Would appreciate ideas.
Burt
Comments
Look at MWHYX High Yield. Then DLENX (Luz Padilla) for EM or PREMX for EM. (I hold the latter.) DODIX is the old stalwart for conservative, domestic bonds. Also: DLTNX (Gundlach) for "Total Return." "Managed, strategic" is what you're after? I cannot actually recommend specific funds that are designed that way; I'm not in any like that. But I've tracked those that I listed after seeing them recommended here in MFO. What it sounds like you want is just a step removed from an Index bond fund. Rather than to depend on and trust that a fund is going to carry the various flavors I want in there, I make sure of it myself---though my current portfolio would seem to fly in the face of that; soon enough, though, I'll be rearranging, diversifying and spreading things out more than is the case at the moment. Finally: I'm just ignorant of Fidelity and Vanguard altogether. Sorry, nothing to say about those two.
Not an index Fund but a fund somewhat akin to FPACX where the manager has the liberty to go anywhere at his discretion. But in this case I am looking for a manager that can confine his expertise to strictly the bond world. When you collect a collection of many types of bonds you are essentially trying to cover all bases meaning that at any given time you will be correct in enjoying upward movement in one or more of your choices. But I am seeking the fund that can take that burden from you by changing with the market. Perhaps I am looking for something that does not exist.
Burt
Fsicx isn't really a go-anywhere fund; it's more of a diversified fund with a default allocation that it sticks pretty close to. It's a pretty palatable (lower risk) way to own some high yield and developed and emerging foreign bonds. Here's how M* describes it in the analyst report:
"Management starts with a neutral asset-allocation mix as a baseline and then makes slight adjustments to that mix based on relative valuation and market outlook. The neutral mix is 30% U.S. government issues, 40% U.S. high-yield obligations, 15% developed-markets sovereign debt, and 15% emerging-markets bonds."
And since this is copyrighted material behind a pay wall, I'll need to invoke the copyright exception of a brief citation for a review:
*** Scintillating, yet profound, Morningstar takes financial analysis to a new level with this page-turner of a report on Fidelity Strategic Income!
Ha, ha.
AJ
FSICX actually has a pretty restrictive mandate. The portfolio tends to be barbell shaped, with high yield on the one end and Treasuries on the other. It works, but it's not quite "go anywhere."
The greatest flexibility tends to be signaled by "unconstrained." The largest unconstrained collection is PIMCO's. You might look at MetWest Unconstrained or Scout Unconstrained if you're looking for retail minimums. Harbor has a clone of PIMCO Unconstrained, but the minimum - at least for direct purchase - is high.
A more constrained choice might be one of the T Rowe Price Income funds. Price Spectrum Income, for example, is a fund of Price's income-oriented funds. It's typically 15% in dividend-paying stocks and 85% in a modestly-shifting mix of bonds. Not a brilliant fund, but very reliable.
I also own Hussman Strategic Total Return (HSTRX), which pursues a mix of bonds (mostly government), commodities and currencies. Hussman is willing to shift allocations substantially. Currently he seems positioned for rough weather; I've got it paired with Price Spectrum and I notice that HSTRX has been making money on bad days and RPSIX on good ones.
Finally, RiverNorth DoubleLine Strategic Income has three sleeves, one of which is Gundlach's signature mortgage-backed piece but the other two are opportunistic.
Perhaps an idea in there somewhere.
Snowball
Appreciate your comments.
Could you comment on the other 2 sleeves of the double line fund and whether this fund would be what I am looking for i.e. a fund that could be the single fund that can go anywhere but does it at the most opportune times such as periods of interest rate fluctuations and global dynamics.
Burt
Site indicated is not available
Can you check and post the correct link
Thanks
Burt
If it still doesn't work, please try http://www.rivernorthfunds.com/ and on the top page just click on the River North/Doubleline fund for a quick description.
Why do you not consider the Gundlach funds?
Burt
PUBDX (flexible mandate; can be creative; only one on my list here with negative YTD)
INCMX (fund of funds; momentum fund; largest holding is currently doubline total return)
IRNIX (biased towards high yield; can hedge credit risk)
LSBRX (star managers; good track record; highest "risk" fund on my list here)
JAFIX (lowest ER on my list here; tends to have a healthy dose of corporates)
OSTIX (mutlisector bond fund that tends to lean on "shorter" duration high yield. Also have convertibles)
Nice mix with these, too. I agree that one needs to look past some bond funds named total and no forget the flexible and strategic names. We all are fortunate today to have a wide range of choices to mix and match.
Take care,
Catch