Limited Duration Bond Fund seeks to deliver a high level of current income consistent with low volatility of principal.
Not exact matches
Franklin
Limited Duration Income (FTF) is a closed end
fund that seeks high current income and capital appreciation through investment in high yield corporate
bonds, floating rate bank loans and mortgage and other asset backed securities.
For now, the Strategic Total Return
Fund continues to carry a
limited duration of about 2 years (meaning that a 100 basis point move in interest rates would be expected to impact the
Fund by about 2 % on the basis of
bond price fluctuations), mostly in Treasury Inflation Protected Securities.
In
bonds, the Market Climate was characterized by relatively neutral valuations and unfavorable market action, holding the Strategic Total Return
Fund to a relatively
limited duration of about 2.5 years.
The strategy of Strategic Total Return has never relied much on the existence of a bull market in
bonds (indeed, our average
bond duration has rarely exceeded 4 years since the inception of the
Fund, and has often been
limited to just 1 - 2 years).
These included: Victory INCORE
Fund for Income (VFFIX), Nuveen
Limited term Municipal
Bond (FLTRX), First Trust Short
Duration High Income
Fund (FDHIX), Guggenheim Floating Rate Strategies (GIFIX), and Eaton Vance High Income Opportunities
Fund (EIHIX).
So by
limiting yourself to
bond funds with short
durations or by splitting your
bond stake between
funds with short
durations (say, two to three years) and ones with intermediate
durations (say, five to seven years), you can mitigate the damage somewhat should rates rise.
The
fund, with a
duration of 6.6,
limits currency risk by investing mainly in foreign
bonds issued in dollars.
The
Bond Fund Interest Rate Sensitivity Illustrator also allows you to hypothetically add or remove
funds from your portfolio to see the estimated impact on the portfolio's Weighted Average
Duration and value within the 1 % rate change
limit.
A 28 - year Fidelity veteran, Galusza manages short
duration portfolios, including Fidelity Short - Term
Bond Fund, Fidelity Advisor Short Fixed - Income
Fund, Fidelity Intermediate
Bond Fund, Fidelity
Limited Term
Bond Fund, and Fidelity Advisor
Limited Term
Bond Fund.