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FPA New Income: A Safe-Haven From Bond-Market Sell-Offs

Safety and stability are the hallmarks of this Bronze-rated fund.


The following is our latest Fund Analyst Report for FPA New Income (FPNIX). Morningstar Premium Members have access to full analyst reports such as this for more than 1,000 of the largest and best mutual funds. Not a Premium Member? Gain full access to our analyst reports and advanced tools immediately when you try Morningstar Premium free for 14 days.

FPA New Income has been a bond market bear, lagging its average peer and struggling to meet a goal of surpassing the Consumer Price Index plus 100 basis points per year over the past 10 years. That's a byproduct of its low-risk style, though, and the fund's long-term record is good when volatility is taken into account: Its long-term Sharpe ratios rank near the top of the non-traditional-bond Morningstar Category. Ultimately, the fund is best viewed as a safe haven from bond market sell-offs rather than a source for upside during rallies. With a well-developed process, a good management team, and a history of long-term success, the fund earns a Morningstar Analyst Rating of Bronze.

Eric Jacobson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.