These include currency - hedged ETFs, triple - levered ETFs based on commodities,
unconstrained bond funds with short positions betting against U.S. Treasurys, private equity funds, emerging market debt instruments, historically less - liquid bank loan funds, and all manner of actively managed strategies packaged in supposedly easy to buy and sell wrappers.
Not exact matches
With unconstrained bond funds free to take an unusually wide range of risks, investors should make sure they aren't taking on too much risk themselves in buying such
funds.
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.
The optimal allocation to
unconstrained funds, however, is rarely a one - for - one swap
with a traditional
bond fund.
For example, in the
bond portion of a portfolio
with a large fixed income allocation, it's possible to pursue better income opportunities while also managing the portfolio's sensitivity to interest - rate movements or other
bond risks using an actively managed,
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.
An «
unconstrained bond fund» invests in anything
with a coupon payment.
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 Bloomb
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 Bloomb
bond legend at the helm, bringing assets to $ 442.9 million through Oct. 31, according to data compiled by Bloomberg.
The Risks of Go - Anywhere
Bond Funds Most unconstrained bond funds replace interest - rate risk with corporate credit risk, which can make their portfolios behave more like sto
Bond Funds Most unconstrained bond funds replace interest - rate risk with corporate credit risk, which can make their portfolios behave more like st
Funds Most
unconstrained bond funds replace interest - rate risk with corporate credit risk, which can make their portfolios behave more like sto
bond funds replace interest - rate risk with corporate credit risk, which can make their portfolios behave more like st
funds replace interest - rate risk
with corporate credit risk, which can make their portfolios behave more like stocks.