3 Multisector Bond Medalists With Unique Approaches
These funds take different paths, but still land within the wide constraints of the category.
These funds take different paths, but still land within the wide constraints of the category.
Kenneth Oshodi: Multisector bond fund managers have the option to invest across a wide swath of assets. Some of the traditional category trappings include healthy exposures to investment-grade and high-yield corporate debt, government debt, and emerging-markets bonds. But there are quite a few different approaches.
Investors should expect to see a fund's government debt weighting near 10% of assets, but some managers place more of an emphasis on this asset class. For example, the team behind [Silver-rated] Fidelity Strategic Income has been willing to invest more freely here and allocated nearly 40% of portfolio assets to Treasuries in 2015.
Kenneth Oshodi does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.