Why aren't long-term treasuries utilized more (or actually at all) in actively managed multi-sector, unconstrained, or flexible income funds? I understand the volatility of such funds but it seems that they do add value. I got to thinking about this again after looking at the prospectus for TMSRX. I believe that they would characterize this under "Style Premia" strategy which includes currency bets (as of 4/20/20 they had 1.4% total in US treasuries).
Portfolio Visualizer for:
1) VEDTX & VTSMX (70/30)
2) VEDTX & QQQ (70/30)
3) PRWCX (100)
Dating back to 1985 (admittedly a period of decreasing interest rates):Portfolio Visualizer results
Maximum drawdown 1 yr for:
Final balance for a $10,000 investment would be:
I've been following such a strategy for quite some time but never had the nerve to actually invest as such. PRWCX is my largest holding & have been very satisfied.