Thursday, June 21, 2012


So-called “unconstrained” bond funds got very hot a while ago, so it’s time to check in on how they’ve done.

For background, you can read a couple of postings from April 2011.  One from Josh Brown looked at the popularity of the vehicles at the time, while David Merkel examined them in a historical context and pointed out some important issues for investors.  The remainder of the year included weak performance from most of them, the crux of a December piece from Bloomberg.

The three mutual funds shown above were featured in that Bloomberg story.  They are JPMorgan Strategic Income Opportunities (JSOAX), PIMCO Unconstrained Bond (PUBAX), and Eaton Vance Global Macro Absolute Return (EAGMX).  Pictured too is the iShares Barclays Aggregate Bond ETF (AGG), which has easily beaten all of them since the start of 2011.  This longer chart begins in 2009.

No comments:

Lunch is for wimps

Lunch is for wimps
It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.