That said, several of the new registrations will end up being solid and useful offerings: T. Rowe Price is launching a global high income bond fund and
a global unconstrained bond fund while Vanguard will offer an ultra-short bond fund for the ultra-nervous.
The Janus
Global Unconstrained Bond Fund, which Gross started managing last month, drew an estimated $ 364 million in client deposits in its first full month with the bond legend at the helm, bringing assets to $ 442.9 million through Oct. 31, according to data compiled by Bloomberg.
The Janus
Global Unconstrained Bond Fund had grown from $ 13 million before Gross took over to $ 1.2 billion through Nov. 28, according to data compiled by Bloomberg.
Note (1) to Janus: You don't have
a Global Unconstrained Bond Fund.
From a recent interview with Bill Gross, manager of the Janus
Global Unconstrained Bond fund: Years of easing by central banks mean that interest rates in most of the developed world will fluctuate narrowly.
At Janus, Gross will manage the recently launched
Global Unconstrained Bond fund and related strategies.
The lawsuit ratchets up vitriol between Gross, 71, who now runs the Janus
Global Unconstrained Bond Fund for Janus Capital Group Inc, and Pimco, which he co-founded and built over four decades into the largest U.S. bond fund complex.
GTO joins the highly popular
global unconstrained bond fund market, facing stiff competition from the likes of BOND and TOTL.
It so happened that Bill Gross, the portfolio manager of the Janus
Global Unconstrained Bond Fund, made that 2.6 % call in a Bloomberg interview on Friday and then in his monthly investment letter on Tuesday.
Not exact matches
Even though the first
fund started in 1969, it wasn't until after the
global financial crisis of 2007 - 2008 that
unconstrained bond funds started gaining traction among investors.
Though
unconstrained bond funds do show periods of low, or at times negative, correlation to the U.S. Aggregate Bond Index, they also tend to demonstrate persistently high correlation of above 0.50 to the Global Aggregate Bond Index, though only until 2
bond funds do show periods of low, or at times negative, correlation to the U.S. Aggregate
Bond Index, they also tend to demonstrate persistently high correlation of above 0.50 to the Global Aggregate Bond Index, though only until 2
Bond Index, they also tend to demonstrate persistently high correlation of above 0.50 to the
Global Aggregate
Bond Index, though only until 2
Bond Index, though only until 2014.
Exhibit 1 shows the rolling two - year correlation of the average monthly return of
unconstrained bond funds to that of the U.S. and
global aggregate
bond indices.
On average,
unconstrained bond funds experienced a maximum drawdown of 3.02 %, which was better than the U.S. Aggregate Bond Index and the Global Aggregate Bond In
bond funds experienced a maximum drawdown of 3.02 %, which was better than the U.S. Aggregate
Bond Index and the Global Aggregate Bond In
Bond Index and the
Global Aggregate
Bond In
Bond Index.
Exhibit 2 shows the risk / return profile of
unconstrained bond funds versus the U.S. and
global aggregate
bond indices.
In the aftermath of the
global financial crisis of 2007 - 2008, one noticeable trend in fixed income investment is the growth and popularity of
unconstrained bond funds.
On average,
unconstrained bond funds delivered lower return and lower return per unit of volatility than the U.S. Aggregate Bond Index and higher return than the Global Aggregate Bond In
bond funds delivered lower return and lower return per unit of volatility than the U.S. Aggregate
Bond Index and higher return than the Global Aggregate Bond In
Bond Index and higher return than the
Global Aggregate
Bond In
Bond Index.