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There are several very good options. Loomis Sayles Bond (LSBDX, LSBRX) is probably the grandaddy of them, and has two of the best managers in Fuss and Gaffney. It is a core hold in many client accounts. We also like BlackRock Strategic Income (BSIIX), Osterweis Strategic Income (OSTIX), and Eaton Vance Strategic Income (ESIIX).
Most of your better families have a Strategic Income fund - we use Price and Vanguard for wifey's stuff. Bob mentioned Loomis and you cannot ignore Pimco Total Return even if it's managed.
I know Dodge and Cox hasn't always gotten the most love over on FundAlarm, but I was actually looking at some numbers over the weekend, and Dodge & Cox Income (DODIX) actually does pretty well from an upside/downside capture perspective, using M*'s metrics. Not sure that this is as much "multi-sector" as some of the other funds mentioned here, but its one that I own. It is huge, by the way.
I like Loomis Sayles, and have been eying their funds for a while, but they seem to be much more volatile than their peers. Still, I follow their bond products with interest.
I've been studying Osterweis for a while, and may eventually take a position there.
I've been very happy with PONDX (PIMCO Income D) and OSTIX (Osterweitz Strategic Income) - mainly because they have given decent returns with lower volatility for the category.
With a view towards interest rate risk I repositioned the bond fund exposure out of multisector bonds (Loomis Sayles Bond, Fidelity Strategic Income, Fidelity Total Bond and Dreyfus Int'l Bond) into absolute return/market neutral multiasset funds (Loomis Sayles MultiAsset Real Return MARYX, Doubleline MultiAsset Growth DMLIX and Rivernorth/Doubleline Strategic Income RNSIX) over the past three months. These are new funds with no track record and seem to be performing as advertised, low volatility neither gaining nor losing with the ups and downs of long only bond funds. Defensive, they don't appear to be a way to make much or lose much money. They set a high benchmark in my opinion, like Libor plus 300 basis points return with no more than 4%-6% annual volatility utilizing hedging strategies long/short currencies, commodities, interest rates, some equities and running up transactions costs with rapid turnover derivative exposures. We'll see, its an experiment. As the saying goes the fixed income side is not the side for risk (and amply demonstrated in the past few years)...the entire bond fund universe seemed exposed to interest rate risk with scant little yield verging on insulting to compensate for it. The Bernank has not been a friend to the income oriented risk-averse, rather being used as a tool to finance the bailout of the banking system, rewarded instead of jailed, a stealth subsidy furthered by a stealth tax of inflation/debasement making a mockery of anything called 'nontaxable account' reaching behind the 'nontaxable' curtain with ease and then the gall to claim credit for the accomplishment. The Bernank has been the goldbug's best friend, we've had silver mining stock exposure (5% assets) for years. Thanks Ben, 800%. Still holding half the previous positions in both Fidelity Floating Rate and New Markets Income.
Comments
Most of your better families have a Strategic Income fund - we use Price and Vanguard for wifey's stuff. Bob mentioned Loomis and you cannot ignore Pimco Total Return even if it's managed.
peace,
rono
I like Loomis Sayles, and have been eying their funds for a while, but they seem to be much more volatile than their peers. Still, I follow their bond products with interest.
I've been studying Osterweis for a while, and may eventually take a position there.
http://moneycentral.msn.com/investor/partsub/funds/topfundresults.asp?Category=MU&View=Performing
I hope this information is helpful.
Good Investing,
Skeeter
Defensive, they don't appear to be a way to make much or lose much money. They set a high benchmark in my opinion, like Libor plus 300 basis points return with no more than 4%-6% annual volatility utilizing hedging strategies long/short currencies, commodities, interest rates, some equities and running up transactions costs with rapid turnover derivative exposures. We'll see, its an experiment. As the saying goes the fixed income side is not the side for risk (and amply demonstrated in the past few years)...the entire bond fund universe seemed exposed to interest rate risk with scant little yield verging on insulting to compensate for it. The Bernank has not been a friend to the income oriented risk-averse, rather being used as a tool to finance the bailout of the banking system, rewarded instead of jailed, a stealth subsidy furthered by a stealth tax of inflation/debasement making a mockery of anything called 'nontaxable account' reaching behind the 'nontaxable' curtain with ease and then the gall to claim credit for the accomplishment. The Bernank has been the goldbug's best friend, we've had silver mining stock exposure (5% assets) for years. Thanks Ben, 800%. Still holding half the previous positions in both Fidelity Floating Rate and New Markets Income.