3 Bold Bond Funds
We look at three Gold-rated funds from our new intermediate core-plus bond Morningstar Category.
Susan Dziubinski: Hi, I'm Susan Dziubinski from Morningstar.com. Bond funds are often thought of as "sleepy" investments: the types of funds investors hold for their income and stability. However, some bond funds have a good deal of leeway in their mandates and have used their flexibility to generate exceptional long-term results. Today, we're looking at three Gold-rated funds from our new intermediate core-plus bond category that have done just that.
Sarah Bush: Loomis Sayles maybe best-known for bond fund legend Dan Fuss' Loomis Sayles Bond Fund but the firm has another topnotch offering in Gold-rated Loomis Sayles Core Plus. The fund's appeal starts with the experience of longtime managers Peter Palfrey and Rick Raczkowski. They draw on a deep and experienced analyst group. That research prowess is important, especially given the fund's broad and bold mandate. The fund can and has invested sizable stakes in high-yield corporate credit, emerging markets debt, and non-U.S.-dollar currencies. This can make for a potent mix, and indeed, the fund stumbled in 2015. Over time, however, the team has put its flexibility to good use, and they've sidestepped many risk market sell-offs. The fund has also posted good returns in healthy credit markets leading to a topnotch long-term record.
Sarah Bush does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.