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Only 3 Multi-Sector Income Mutual Funds Above Water YTD

Only 3 Multi-Sector Income mutual funds above water so far this year: RCTIX, EIXIX, DLDFX. Each have a healthy dividend and held-up pretty well in March 2020.

Dennis Baran profiled River Canyon Total Return Bond Fund Institutional Class (RCTIX) for MFO in 2019.

David Sherman of Cohanzick Management is one of the subadvisors on DLDFX.

Nice performance summary table here.

Comments

  • Sorry to say it appears DLDFX. is now (-) YTD as / yahoo fin..
  • edited March 9
    Yep, it's close. Data is month ending February.
  • and then there were two...

    (Agatha Christie)
  • edited March 9
    Until yesterday, RCTRX was positive for the year,
  • HMEZX and PVCMX are both up YTD. Its nice to see a little green in there somewhere.
  • edited March 9
    JD_co said:

    HMEZX and PVCMX are both up YTD. Its nice to see a little green in there somewhere.

    Lots of funds green for the year just very few in the multi sector income category as Charles was alluding to. RCTRX is a little known income fund that has held firm through the turmoil in its sister funds ala IOFIX, SEMPX, and others. At one time I saw where you were a holder of RCTRX which was a good move. I had tried to purchase it awhile back but unable to do so. I wouldn’t necessarily advise buying it now though.


  • edited March 9
    Junkster said:

    JD_co said:

    HMEZX and PVCMX are both up YTD. Its nice to see a little green in there somewhere.

    At one time I saw where you were a holder of RCTRX which was a good move. I had tried to purchase it awhile back but unable to do so. I wouldn’t necessarily advise buying it now though.


    Funny, I just recently sold RCTRX. Decided the only way to hold bonds of any class will be via Allocation funds. I have ZERO feel for when debt will be a "good" investment again, whether that be HY, Munis, MBS, etc.
  • JD_co said:

    Junkster said:

    JD_co said:

    HMEZX and PVCMX are both up YTD. Its nice to see a little green in there somewhere.

    At one time I saw where you were a holder of RCTRX which was a good move. I had tried to purchase it awhile back but unable to do so. I wouldn’t necessarily advise buying it now though.


    Funny, I just recently sold RCTRX. Decided the only way to hold bonds of any class will be via Allocation funds. I have ZERO feel for when debt will be a "good" investment again, whether that be HY, Munis, MBS, etc.
    I am thinking when the fog lifts and momentum swings back to the upside that junk bonds will be the trade in Bondland. In the past they pretty much rose in tandem with equities. I am compiling a list of the junk funds for the next go around, But some people much smarter than me make a compelling case that the 10 year will normalize around 4%. If they finally get it right this time, unlike the past decade, not sure that bodes well for junk corporates. Could be a rough road for anything bond related especially if the Fed decides to actually take a stand against inflation.

  • edited March 9

    Junkster said:

    Could be a rough road for anything bond related especially if the Fed decides to actually take a stand against inflation.



    That's the frustrating part. Powell indicated he only wants to raise in 25 bp increments when it would appear that a stronger tightening response would be appropriate in the current inflationary environment. Eh, but what do I know.
  • Here are all bond mutual funds, excluding Specialty Income, that are above water (month ending February), sorted by return, highest on top:

    Fairholme Focused Income (FOCIX)
    Eaton Vance Short Duration Inflation-Protected Income I (EIRRX)
    Northeast Investors Trust (NTHEX)
    American Century Short Duration Inflation Protection Bond Inv (APOIX)
    Fidelity Series 0-5 Year Inflation-Protected Bond Index (FSTZX)
    T Rowe Price Limited Duration Inflation Focused Bond (TRBFX)
    SEI Real Return A (RRPAX)
    Franklin Templeton Floating Rate Daily Access A (FAFRX)
    SEI Real Return F (SRAAX)
    Franklin Templeton Global Bond A (TPINX)
    Catalyst Stone Beach Income Opportunity I (IOXIX)
    BlackRock iShares Short-Term TIPS Bond Index K (BKIPX)
    Invesco Sh Dur Infl Prot R5 (ALMIX)
    Sit Quality Income (SQIFX)
    River Canyon Total Return Bond Inst (RCTIX)
    T Rowe Price US Limited Duration TIPS Index I (TLDUX)
    Advisors Preferred Quantified Government Income Tactical Inv (QGITX)
    Franklin Templeton International Bond Adv (FIBZX)
    CrossingBridge Low Duration High Yield Inst (CBLDX)
    Catalyst Enhanced Income Strategy I (EIXIX)
    Regan Total Return Income Inst (RCIRX)
    Invesco Senior Flt Rate Fd A (OOSAX)
    Lord Abbett Inflation Focused F (LIFFX)
    RiverPark Short Term High Yield Inst (RPHIX)
    DFA Short-Duration Real Return Portfolio Inst (DFAIX)
    CrossingBridge Ultra-Short Duration Inst (CBUDX)
    Weitz Ultra Short Government (SAFEX)
    CM Advisors Fixed Income (CMFIX)
    Pacific Funds Floating Rate Income I (PLFRX)
    Putnam Ultra Short Duration Income Y (PSDYX)
    SEI Conservative Income F (COIAX)
    AMF AAAMCO Ultrashort Financing Y (REPYX)
    Brinker Capital Destinations Low Duration Fixed Income I (DLDFX)
    Rational Special Situations Income Inst (RFXIX)
    Advisors Preferred Quantified Tactical Fixed Income Inv (QFITX)
    CBIS Catholic Responsible Investments Ultra Short Bond (CRHSX)

    Ed actually shared with me recently that this could be a good year for FOCIX. Berkowitz's JOE does indeed seem to be paying off, finally.
  • Or just 36 of 1218.
  • @Junkster. Great seeing you on the board!
  • M* Fund Quickrank seems to show YTD as of today. There is no single category for bonds, but there are typical M* bond categories of corporate bonds, intermediate core, intermediate core-plus, HY, EM, multisector, etc.

    BTW, in the multisector category, at the top with positive or 0 returns are CBLDX, QBDSX; at the bottom is PDICX.

    In All categories, at the top is OEPIX, and at the bottom IIRFX.

    https://www.morningstar.com/funds/screener-rank
  • Recently trimmed my fixed income sleeve to 25% from 30%. Added to alternatives. All my bond funds stink this year. DODIX down over 4.5% YTD. PRIHX off a bit less than 4%.
  • Yes. Sure feels that way.
  • In this kind of market phase, anyone who thinks a drop of 5% 'stinks' has simply not been through enough rodeos. I would luuuuv it if my portfolio were down only 5%.
  • edited March 13
    Yes, agree @davidrmoran. This is more for those of us influenced by The Junkster School of Investing.

    I do know some people that get upset when CDs show a daily loss in their Schwab accounts, not realizing it's mark-to-market pricing.

    I also feel that since rates have been trending down for the past 40 years, we're not accustomed to seeing our IG bond funds going down ... even a little.
  • Yes, interest rates will be climbing, even if gently. Hard to find anything above the zero-line right now. inflation, too. That's not going away soon--- particularly with the war. Goddam Putin. I'm down over 6% YTD, even with 60% in bonds. Too soon to go hiding completely in MM funds, it seems to me. I remember '08-'09. THAT made me nauseous.
    But I kept buying. I was still getting a salary back then, too.
  • Thanks to @ Devesh Shah, YTD return on short-term inflation protection security such as VTIP and STIP are up 1.4%. Think they will do ok in rising rate environment.
    https://mutualfundobserver.com/2022/02/thoughts-on-inflation-protection/#more-16373

    I moved most of my bonds to short duration bonds, bank loans, and stable value funds since last fall. Portion of it went to FSRRX and commodity funds. At least some asset class that have negative correlation to stocks and bonds.
  • edited March 13
    Perhaps take some solace here ...

    There are 811 bond funds, excluding Specialty Income, that have never returned less than zero in any 3-year rolling period since launch. Several of these go back to circa 1980.

    Among them: DODIX, PRCIX, FGOVX, VFIIX.
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