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Comments

  • Looks like a bit of evidence that BL/FR will be a strong bond category going forward.
  • Could you explain your thinking a bit?

    For example, someone else posted in the thread announcing First Eagle Global Real Assets Fund that it could simply be a grab for more assets. That was my initial reaction here as well.

    Though after checking on the prospective manager, Bryan C. Krug, I reconsidered. He currently manages a five star HY fund for Artisan, APDFX. M* describes his style as concentrated and idiosyncratic, hence capacity limited. For this reason that fund recently closed.

    This new fund could be a way for him to invest in one part of the HY market where he has not yet reached his capacity limit. Just a possibility based on a brief look. At least this is likely not going to be another "me too" fund.
  • edited September 14
    Having just completed an exhaustive search for an income fund to plug a hole in my “multifaceted income” portfolio spot, I’m inclined to suggest the name of these be changed from “floating rate” to sinking rate.

    Of course, low rates of return exist pretty much across the entire fixed income spectrum.
  • edited September 15
    My reasoning for "suggesting" that Artisan starting a BL fund, is just based on "my" general observation, that some of the major investing families, will often introduce a new category fund, or an additional fund in an existing category, when they view the fund's future as bright, and potentially attractive, for investors interested in that category. In general, BL funds do well when interest rates are flat, or rising. In 2021 BL has been one of the most consistent bond categories for the year, with many of the better known BL funds "quietly" having very good years, compared to historical TRs. It is just my opinion, but I have done well with some BLs in 2021, and I am not surprised to see more BLs opening.
  • msf
    edited September 15
    I was curious because my impression is that fund families seem to start piling into a category once it has done well. That speaks more to a category's past than its future prospects. It sounds like you're basing your expectation of continued good fortune on a sense that interest rates will continue rising or at least not fall.

    There's no question that that describes the recent past. Whether past is prologue remains to be seen. It's your implicit prognostication about future rates that wasn't apparent in the earlier post.
  • I don't predict rates. All I am saying is that BLs have done very well in 2021, and fund families do not start funds, because they think that fund will not do well going forward.
    Fund companies want to attract new investors, and if you do not have a fund that investors are interested in, they will go to another company that does offer that kind of fund.
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