MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

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

FSD: A Stable Absolute Return Bond Fund With A Monster Yield

johnNjohnN
edited March 2021 in Other Investing
https://seekingalpha.com/article/4411564-fsd-stable-absolute-return-bond-fund-monster-yield

Summary
The biggest problem facing retirees today is an inability to generate reasonably stable income.
FSD is an absolute return bond fund that boasts a remarkable 8.7% yield.
The fund is well positioned to benefit from rising interest rates due to its short position in US Treasuries.
The fund appears to normally cover its distribution, although it did fail to in 2020 due to some of the uniqueness of that year.
The fund currently trades at a fairly attractive discount to net asset value, so the price appears to be right.....





will look at this vehicle further

Comments

  • carew388carew388
    Actually a closed-end fund, and how much of that yield was return of capital ?
  • WABACWABAC
    Do you generate income by linking to advertisements like this?
  • msf
    February: 27.96%
    January: 29.56%
    December: 31.86%

    19a-1 notices, generally:
    https://www.ftportfolios.com/Retail/Cef/Ceffundnewsarchive.aspx?Ticker=FSD&SubCategoryCode=19A1_NOTICES
  • Old_JoeOld_Joe
    @WABAC- I'd be surprised. Judging by his posting here for a number of years John is just a sucker for come-ons. If it's too good to be true, John will be among the first to bite.
  • davidrmorandavidrmoran
    or at least tout
  • catch22catch22
    @johnN
    I will have to assume that you consider this fund to be appropriate for your Mom's retirement account, yes ???
    Only a meaningful holding of at least 25% of a total portfolio would be helpful for performance. Otherwise, one is just fiddling around with some money.
    So, might you sell 25% of BND or FBND in your Mom's account, to move to FSD?

    Not quite one's plain vanilla bond fund, eh?

    NOTE: FSD has outperformed BND or FBND for the past 6 months.


    FSD vs FBND from Jan 2018.........I chose this time frame, as 2018 through YTD 2021 has had several interesting market swings.
  • johnNjohnN
    edited March 2021
    HI Sirs
    Mama's portfolio mostly fixed incomes /private corp bonds and majority in fidelity 2015, along with BND FBND, about 20s% cash.

    FSD maybe too risky for retired portfolio [as they say high risks high rewards]
    prob wont get it anytime soon
Sign In or Register to comment.