FYI: In early May, Morningstar retired the intermediate-term bond Morningstar Category, which was the largest of our fixed-income categories. In its place, we introduced two new categories: intermediate core bond and intermediate core-plus bond.
Why the change?
Although the funds in the old category shared many traits, most landed in one of two camps, explains director of fixed-income strategies Sarah Bush. The first group features intermediate-term bond funds that stick with U.S.-dollar investment-grade debt and carry little exposure to below-investment-grade securities. The second group--the “plus” team--includes intermediate-term bond funds with more flexible mandates that hold larger stakes in below-investment-grade and non-U.S.-dollar debt.
How can investors use these more diverse--and higher-yielding--core “plus” funds in their portfolios?
Regards,
Ted
https://www.morningstar.com/articles/938581/9-exceptional-and-plucky-core-bond-funds
