I currently 'manage' a portfolio for a family member. I'm looking to find a Multi-Sector/Global Bond Fund that diversifies my Fixed Income portion of the portfolio. Current Bond Fund is DODIX, an Intermediate Core Plus fund. Dodge & Cox has a solid Global Fund but it's hard to see overlap in Bond Funds on M*. Thanks to this site I've been introduced to PTIAX and a few other ideas...Any suggestions of crowd favorites I can research further. FYI - Brokerage Account is with TRP.
Thanks in advance!
Link to Bank Loan Mutual Funds:
It’s highly rated, solid performance and most metrics are at or near the top of the category.
FYI: It’s not the most conservative multi-sector fund. Just depends on what you are looking for.
Just check to see that instead of diversifying, you are "de-worse-ifying." I've never felt the need to absolutely cover all bases in the investing universe.
Global multi-asset bonds:
I own PRSNX and RPSIX, both TRP funds. They serve me well, particularly in the current zero interest rate regime. PRSNX is dollar-hedged, though. Remember: the shorter the duration, the smaller your dividends.
HY Munis: OPTAX, NHMAX, MDYHX, GHYAX, MMHAX, VWAHX, VWLTX
MS: PTIAX, PIMIX, TSIAX, HSNAX
STB: LALDX, VSCSX
She has many private bond corps from Ford att tmobile GM BAC
Btw most cash CD/ yields are extremely low now so unclear if these are good vehicles going forward
Note that World bond and/or EM bond funds can be VERY difficult categories to do well in. I tend to get my little bit of foreign bonds via other bond bonds, NOT a dedicated World bond fund. DODLX, cousin to DODIX(?), may be one of your best options there.
PRSNX had a smaller drawdown and recovered quicker. 2020 was a unusual year where the boring total bond index fund performed quite well. Will see how bonds will do this year with higher inflation, but Fed will keep rate flat for another year.
Note that PTIAX does not publish its duration. Spoke to them years ago and was told the reason is basically to protect us average investors from ourselves. Interest rate risk is not completely/accurately measured by avg duration and the firm does not want its avg duration to be incorrectly interpreted as a measure of PTIAX's interest rate risk.
Disclaimer: LT owner of PTIAX and comfortable with whatever avg duration it has, albeit largely unknown.
I don't like to engage in too much of the bond detail stuff, but it is a necessary evil of owning them. For those who do and may need a primer/refresher:
The following performance graph is from PIMIX's 2009 statutory prospectus. You can take it on faith that this is for the institutional class shares for calendar year 2008 or you can find it yourself on p. 58 of the 21MB prospectus.
"So, now, everybody's convinced the yields are going to go up 1% to 2%, but not above 2%. We'll see. What I would tell you about rates today is that the risk/reward on Treasuries or IG [investment grade] is so poor, it gets a situation where if rates stay static, you make very, very low returns. If rates revert back to more normalized levels, you lose a lot of money. And if rates go down, you don't have a lot of room for rates to go down. So, it's really hard to get a really great return. [...] even if rates rose 100 bps over two years, you made zero return. [...] So, as a result of that, we have a very short duration in our fixed-income portfolio, probably the shortest duration we've had since I've been running this strategy.
Our duration today is 1.5 years, just because that skew is so negative on a lot of traditional fixed income. [...] So, this is a time to be short duration in your fixed-income portfolio. [...]"
Since I basically agree with Giroux's current outlook, I will not invest in "reliable" intermediate core/core plus bond OEFs at this time. Rather, I am using multi-sector OEFs like RCTIX, TSIIX, or even PIMIX, which have excellent risk/reward profiles but durations of less than 3.0.
This may be off-topic, but I have also been investing in alternative funds like ARBIX, a "market neutral" fund according to M*, that has exhibited a bond-like low risk profile with a SD of 2.97% and a Sortino Ratio of 2.38. Its YTD total return is 1.43% and its 3-year return is a pleasing 6.23%. During the recent market crash, the fund lost 3.1% during the month of March, and over its 3.5 year history its largest monthly loss was 0.38% in November 2018. So far, so good.
These are very uncertain times and, as another poster said, "with rising interest rates in 2021, it seems that [...] Investment Grade Intermediate bond oefs are struggling". Hence, I have decided to look at other low risk opportunities outside the conventional bond OEF box.
After that I said "The same holds mostly true back to 2009 (except PIMIX was down a modest 5.47% in 2008)." I should have said back to 2008 but the point is the same.
It's okay to misread to oneself, but I should have been more careful before going further and writing that numbers were different.
The only explanation that I care about is performance which is after expenses + risk attributes(SD, Max Draw, Sharpe, Sortino, others).
I never invested in SVARX because I do my own trading + going to cash and my performance + SD in the last 3 years is better. My portfolio max loss from any last top was lower than 1%.
Past performance is important but I'm looking to make a lot more since my portfolio is mainly in bond OEFs. See below performance as of 2-9-2021 sorted by YTD.
Can you guess where is my money now?
It's also pretty obvious from my table above that PIMIX is way behind the leaders for 1-3 months and what I use for my investments as a trader.
" When the students are ready to learn, the teacher will appear"
Hmm... I think I heard that on an old kung Fu tv show years back.
Best of luck to all,