Sentences with phrase «bond fund manager makes»

So, when an economist or bond fund manager makes an accurate forecast about Treasury yields, his or her clients are probably doing very well.

Not exact matches

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.

In an unconstrained bond fund, the manager can hedge interest rate risk with futures, options, or swaps, or even short Treasury bonds or notes, and make up the loss in yield by overweighting credit.

Since most mutual funds have a team of fund managers doing the actual research and selecting individual stocks or bonds that make up the mutual fund portfolio, most of the hard work will already be done for you.

The mutual fund manager, as well as a team of financial analysts, researches the area of investment and makes informed decisions about which stocks or bonds to buy or sell in order for the mutual fund to achieve the highest rate of return.

There is a manager of the fund who is buying and selling mostly stocks and bonds for the fund in an attempt to make you money.

Make sure you understand what kind of bonds are contained within the fund and if the fund manager is forced to hold long - term bonds or if they have total flexibility with the holdings.

The tally is partial because we tend to exclude vanilla bond funds and index funds from the tally, since the managers in such funds make relatively modest differences in the funds» performance.

@Jerry, I agree that today the main risk in bonds is duration risk (AKA interest - rate risk)-- last weekend's Barron's has an interview with the UBS Wealth Management top managers pointing out this means convincing investors to switch from Treasuries and investment - grade corporates to well - selected junk (HYLD is a jewel there — DO N'T go for index funds in bonds, very differently from ones in stocks they make no sense... where's the sense in wanting to lend more to companies which are more indebted?!

Personally, I don't think Gundlach makes his money that way for his funds, but in case he does, how should a good bond manager view junk bonds?

The manager will make tactical shifts in the fund's asset mix when he feels that stock or bond valuations are at an extreme.

If the fund's name includes the term, it means the fund's managers or sponsors feel they can enhance returns and / or reduce the risks of their funds by switching back and forth among stocks, bonds and cash equivalents, often using a so - called «black box,» a computer program that makes trading decisions based on a pre-selected set of rules for interpreting financial statistics.

A good bond manager has already decreased the portfolio duration (selling long term bonds to buy more short term bonds) to make sure that the bond fund doesn't drop drastically.

They use index funds or ETFs except in certain asset classes, such as emerging markets or municipal bonds, in which they think an active manager can make a difference.

It is possible that as the fund manager changes the portfolio composition over time, she may actually lose or make money relative to a static portfolio of the underlying, but this is no different in a bond fund than in a stock fund.

The average investor, who buys stocks and bonds, does not have the necessary time to assess securities, nor the expertise to make qualified investment decisions; thus he indirectly hires the fund's manager to make these decisions.

The three main risks that they carry are — credit risk where the bond issuer fails to make timely interest payments and repay the principal amount on maturity; liquidity risk where the fund manager is not able to sell his paper due to lack of demand for a particular security and; interest rate risk where a change in interest rate changes the price of the bond.

Likewise, Dodge & Cox is a stock - heavy manager, and their largest funds made a big losing bet on financial stocks last year, which, combined with a relative lack of bond assets to buffer them, didn't serve the firm (or their funds» investors) very well.