My Total Bond Portfolio

PSA

I am one year from taking SS at age 66. I consider myself an aggressive/high risk bond investor. I currently hold in roughly equal amounts totaling $255,000 - AGDYX (Alliance Bernstein High Income Advisor), MWHYX (Metropolitan West High Yield Bond M) and MWTRX (Metropolitan West Total Return Bond M). I am quite content with my current mix of multi-sector, high yield and intermediate corporate bonds. I am re-investing the dividends and capital gains until I take the income in about one year. I also hold small positions in two equity funds - EXWAX and FAIRX, in addition to a Roth Fidelity managed IRA. Any suggestions for another bond fund to provide some extra kick or leave well enough alone?

catch22

I believe you have just about all the kick currently available with your bond mix. The exceptions may be some of the closed end funds that really throw around the bets. I suspect you'll be happy with your holdings for another year.

Regards,
Catch

00BY

PSA,
Can you provide percentages instead of total dollar amounts. It is easier to think about portfolio composition and allocation in terms of percentages.

I'm confused about what you are looking for. Are you only looking for extra kick for the next year? Or will this be a longer term holding where you may be taking distributions as cash.

For extra kick, you can consider adding:
TGEIX TCW Emerging Markets Income I
PLBDX PIMCO Emerging Local Bond D
LSGBX Loomis Sayles Global Bond Instl.
DLTNX DoubleLine Total Return Bond N

All the best,
BY

PSA

Thanks 00BY for your suggestions. The only funds you mentioned that might provide an extra yield kick would be TGEIX, DLTNX (retail shares) or DBLTX (Institutional shares). Both share classes are new. I wonder if it's worth trading (selling) MWTRX for DBLTX or TGEIX? I currently have slightly more than $100,000 invested in MWTRX.

[Deleted User]

I would add FAGIX. I compared FAGIX to your holdings and it oustripped them over 1, 2 & 5 yrs. If as you say you are aggressive the big drop in '09 would not have phased you but for a more steady performance your MWTRX takes the cake.

PSA

I have decided to sell all shares of MWTRX and purchase DBLTX (institutional shares) at the $100,000 minimum purchase price. That ought to provide that extra yield and dividend kick I'm looking forward to.

[Deleted User]

Even during retirement you still need some equity exposure to keep up with inflation. Also I notice you don't have much foreign bonds, particularly emerging market bonds. Personally I prefer emerging market local currencies funds to hedge against declining US dollars.

Few to consider:
Pimco Emerging Local Currency Bond, Institute share, PELBX
TCW Emerging Market Local Currency bond, institute share, TGWIX