Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Should You Follow Kathleen Gaffney Out Of Of Loomis Sayles Bond Fund ?
As to Eaton Vance. Their funds would not be on my list......a bit too pricey, eh? Gotta love those "A" shares and that 4.75% load. No thanks.
While Ms. Gaffney's departure may have some impact upon how LSBDX is managed; my larger concern is towards when Mr. Fuss chooses to retire. This fund is more of a hybrid-psuedo bond fund and can not be catorgized so easily as being a pure multi-sector bond fund. Between the percentage of HY bond holdings and perhaps as much as 20% equity holdings; this fund reacts more to equity market and run to safety market issues; at least with the current investment style. Whether this style changes because of Ms. Gaffney's departure may not be know for some time; and with at least a 3 month reporting period delay in holdings reports. The below link will provide a view to the most simple of correlation to SPY. Just below the graph, move the left side timeline slider left to about 900 days. One may view the period of late spring of 2010 (when Europe was burning), and again at the U.S. market melt period beginning in July, 2011.
Our portfolio holdings indicate names that are bond funds; but there are correlations with the health of the equity markets, too; aside from a safe haven status of "some" bond types during equity market unrest that affect the pricing/returns of these bond funds. Among our funds that are HY/HI, LSBDX, FRIFX and FAGIX (which is usually 15-20% equity), we do have exposure to equity market health with bond funds.
Reply to @catch22: In addition being classified as a multi-sector fund, LSBDX hold sizable, ~30%, Canadian and Australian bonds. Thus far this fund is ahead of the Loomis Sayles global bond fund, LSGBX.
Comments
While Ms. Gaffney's departure may have some impact upon how LSBDX is managed; my larger concern is towards when Mr. Fuss chooses to retire.
This fund is more of a hybrid-psuedo bond fund and can not be catorgized so easily as being a pure multi-sector bond fund.
Between the percentage of HY bond holdings and perhaps as much as 20% equity holdings; this fund reacts more to equity market and run to safety market issues; at least with the current investment style. Whether this style changes because of Ms. Gaffney's departure may not be know for some time; and with at least a 3 month reporting period delay in holdings reports.
The below link will provide a view to the most simple of correlation to SPY. Just below the graph, move the left side timeline slider left to about 900 days. One may view the period of late spring of 2010 (when Europe was burning), and again at the U.S. market melt period beginning in July, 2011.
LSBDX vs SPY
Our portfolio holdings indicate names that are bond funds; but there are correlations with the health of the equity markets, too; aside from a safe haven status of "some" bond types during equity market unrest that affect the pricing/returns of these bond funds.
Among our funds that are HY/HI, LSBDX, FRIFX and FAGIX (which is usually 15-20% equity), we do have exposure to equity market health with bond funds.
Regards,
Catch