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Does anyone own or have experience/knowledge about this fund? I noticed it pops up with very good numbers on the MFO Risk Profile and it seems to be fairly similar to OSTIX. It doesn't have a very long history, however. What part would this fund play in a portfolio?
I purchased a similar fund, ASDVX as a part of my fixed income side. The short duration would mean less volatility during rising interest rates. I have noticed this during volatile days in the market up or down as my other bond funds had more fluctuation than this one. I am assuming ASHDX is unconstrained?
I was reading the fund "Fact Sheet" tonight and it says it invests primarily in higher-quality high-yield bonds and maintains a duration of less than three years. So, it doesn't sound unconstrained based on that. Currently, the duration is about 1.49 years as of March 31.
I've had a moderate position in ASHDX since early this year; so far, so good. Short-term, higher-quality junk is the game, decent yield with lower volatility & credit risk (than other HY) is the expectation. Haven't followed OSTIX lately, but in the past it's been invested in lower-rated bonds.
I've had a moderate position in ASHDX since early this year; so far, so good. Short-term, higher-quality junk is the game, decent yield with lower volatility & credit risk (than other HY) is the expectation. Haven't followed OSTIX lately, but in the past it's been invested in lower-rated bonds.
May I ask what you use it for and where? Taxable or tax-deferred account?
Taxable account. What I use it for is basically the expectation I mentioned. I keep a range of credit-risky FI in what I think of as a separate sleeve in the portfolio, and ASHDX is a lower duration/higher quality (and therefore presumably less risky) piece of that sleeve. In the past I've used other funds (e.g., OSTIX, RSIVX) to fill the short & junky role.
Taxable account. What I use it for is basically the expectation I mentioned. I keep a range of credit-risky FI in what I think of as a separate sleeve in the portfolio, and ASHDX is a lower duration/higher quality (and therefore presumably less risky) piece of that sleeve. In the past I've used other funds (e.g., OSTIX, RSIVX) to fill the short & junky role.
I was just checking their respective holdings on *M and you are right: OSTIX holds a bit more lower-rated junk bonds than ASDHX. At last check, OSTIX had about 37% of its portfolio rated below B, whereas ASDHX had about 8% rated below B.
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