FYI: There seems to be no shortage of worries to keep a chief investment officer up at night. Yet, when asked for a quick take on the fixed-income market, Ken Taubes, 60, offers some consolation. “I actually think we’re getting back to a more normal economy, at least in the U.S.,” he says. “Even if the politics seem abnormal.”
The question that has for years been weighing on investors—how bond markets would react to rising interest rates—has largely been answered. “Most of the damage has been done, or it has been priced in,” says Taubes, who has managed the $5 billion Pioneer Bond fund (ticker: PIOBX) for the past 20 years. The fund has returned an average of 5.4% a year over the past decade, better than more than 80% of the Morningstar intermediate bond category; along with its peers and the benchmark, the fund is down 2.4% so far in 2018.
Regards,
Ted
M* Snapshot PIOBX:
https://www.morningstar.com/funds/XNAS/PIOBX/quote.htmlLipper Snapshot PIOBX:
https://www.marketwatch.com/investing/fund/piobxPIOBX Is Rand #22 In The (IB) Fund Category By U.S. News & World Report:
https://money.usnews.com/funds/mutual-funds/intermediate-term-bond/pioneer-bond-fund/piobx
Comments
I'm thinking Mr. Tabes is correct in his thinking about most of the damage has already been done with respect to rising interest rate damange to bond prices. And, since stocks are now feeling the heat form rising interest rates I've been adding to my fixed income positions while trimming some equity positions by taking their capital gain and dividend distributions in cash. I've also been thinking of adding some new income funds as well. Although, I don't own this fund I do own MFS Diversified Income (DIFAX); and, now after reading this article I plan to consider PIOBX while I am in the look see phase and review process for new income fund additions. He and his team seem to be skilled in their craft.