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I'm not very familiar with BINC so I can't comment on fund similarity. It may be worthwhile to consider the following three multisector bond funds.
River Canyon Total Return Bond Fund - Institutional (RCTIX) Intrepid Income Fund - Institutional (ICMUX) CrossingBridge Low Duration High Income Fund - Institutional (CBLDX)
Because drawdowns are a consideration for you, for diversified multisector bond funds I like ESIIX and CUBIX. Although not the same kind of fund as BINC, I like EGRIX, which is a global macro absolute return bond fund. It also has had relatively low drawdowns and has had good returns.
@Observant1, why did you sell River Canyon Total Return Bond Fund RCTIC?
I was looking at Vanguard Multi-Sector Income Bond VMSAX. It looks nice a nice fund, but it had a fairly big drawdown in April (about the same as PIMIX).
@Observant1, why did you sell River Canyon Total Return Bond Fund RCTIC?
Not Observant, but I also used to own RCTIX. It underwent manager changes a few years ago, the performance started to suffer, and there seemed to be some uncertainty. So I sold it. It later improved and recovered. The fund is 55% securitized. When I was thinking about getting back into the fund, I saw that SYFFX, a securitized fund, was outperforming RCTIX. SYFFX outperforms RCTIX at every trailing period I look at. So if I when considering RCTIX, which has more than 50% exposure to the securitized sector (a sector I was underexposed to), I thought that I might as well go with a dedicated securitized fund that has performed better.
Several names mentioned are not really multisector bond funds. Some are core-plus, ST-HY, global HY, nontraditional bond funds. So, keep this in mind when comparing Drawdowns, SD, Sharpe Ratios.
Multisector category includes sovereign bonds, corporates, HY and EMs in a single package. Some follow allocation ranges rigidly (FADMX), some act like go anywhere funds, so may look quite different at times (PONAX / PIMIX).
IMO, a combination of mostly core-plus bond fund and some multisector bond fund cover lot of bond territory.
"IMO, a combination of mostly core-plus bond fund and some multisector bond fund cover lot of bond territory."
I agree. But I'm considering possibly replacing my core-plus bond fund (DOXIX) with a dollar-hedged global bond fund (PGBIX) sometime in the future. https://testfol.io/?s=4XrGJnvG9lB
Just be aware with securitized (MBS) funds.....SYFFX lost -31% in 1Q 2020, as many of these funds were crushed at the time. That's why I don't hold more HOSIX.
Just be aware with securitized (MBS) funds.....SYFFX lost -31% in 1Q 2020, as many of these funds were crushed at the time. That's why I don't hold more HOSIX.
It's not that history will repeat, but it can.
Good observation. I normally don’t look further than 5 years (and place more emphasis on 3 year returns), and don’t look at individual quarters that far back. so I probably would have missed that. That is also something to consider.
It would be a good idea to examine drawdown periods as @Obervant1 noted with various multi-sector funds and ETFs for their risk. Using MFO Premium, one can compare these funds for their MFO rating and Risk over 3 years and 5 years period. In general, MS funds carry higher risk than that of investment grade bonds. I have short term investment bonds to compliment my MS and high yield bonds.
SYFFX has a large chunk in junk-rated fare (at least right now), while other securitized funds like DHEAX and SEMRX are overall investment grade. At this point I'm emphasizing IG in that category and taking a bit more risk in international funds. In Pimco-land, I've held PYLD off and on since inception and consider it a good MS fund.
Comments
BINC is in iShares/BlackRock universe and there are also similar cousins.
Vanguard has VGMS and cousin VMSIX / VMSAX.
Fido has rather tame FADMX.
It may be worthwhile to consider the following three multisector bond funds.
River Canyon Total Return Bond Fund - Institutional (RCTIX)
Intrepid Income Fund - Institutional (ICMUX)
CrossingBridge Low Duration High Income Fund - Institutional (CBLDX)
I've previously owned RCTIX.
-CBLDX (Crossingbridge)
-APDPX (Global unconstrained)
-HOSIX
-NRDCX (Crossingbridge - Nordic fund) is an interesting add
-DHEIX - short-term HY.
This mix should maintain a very low SD, if recent history is any indicator.
I was looking at Vanguard Multi-Sector Income Bond VMSAX. It looks nice a nice fund, but it had a fairly big drawdown in April (about the same as PIMIX).
I sold RCTIX due to an abrupt manager departure.
https://www.mutualfundobserver.com/discuss/discussion/comment/147655/#Comment_147655
Multisector category includes sovereign bonds, corporates, HY and EMs in a single package. Some follow allocation ranges rigidly (FADMX), some act like go anywhere funds, so may look quite different at times (PONAX / PIMIX).
IMO, a combination of mostly core-plus bond fund and some multisector bond fund cover lot of bond territory.
I agree.
But I'm considering possibly replacing my core-plus bond fund (DOXIX)
with a dollar-hedged global bond fund (PGBIX) sometime in the future.
https://testfol.io/?s=4XrGJnvG9lB
It's not that history will repeat, but it can.
I recall when IOFIX and SEMMX were touted as being "cash subs."
Both of these funds subsequently generated significant losses during Q1 2020.
https://www.mutualfundobserver.com/discuss/discussion/comment/150158/#Comment_150158