Investors have been putting money back into bond funds as interest rates have unexpectedly dropped this year.
This article represents opinions of the author and not those of his firm and are subject to change from time to time and do not constitute a recommendation to purchase and sale any security nor to engage in any particular investment strategy. The information contained here has been obtained from ...
Investors' average 3% to 4% allocation is low given the rising importance of emerging markets.
Although investment-grade bonds have performed better recently, we expect high-yield bonds to hold their value better in the medium term as rates rise and the economy continues to grow.
Standard deviation and downside capture ratio provide similar but not identical insights into fund performance.
As the sector has continued to best the broader market, a look both at the dynamics that would drive further outperformance by the sector and at funds that investors can use to tap those themes.
Although 4- and 5-star funds see strong inflows, funds that have yet to receive a Morningstar Rating have attracted the most assets.