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Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

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Three Funds Trump the Bond King





Morningstar reported that three intermediate bond funds exceeded the performance Bill Gross's flagship fund PIMCO Total Returns over a 10-year period. Are you wlling to buy for the performance and take a bit higher risk?

From Morningstar:

The world's biggest bond fund, PIMCO Total Return (PTTRX), is also one of the best. However, three intermediate-bond funds have bested legendary manager Bill Gross' returns at PIMCO. Each has done so by taking on more risk than PIMCO Total Return.

Calvert Income (CFICX) has returned 8.16% for the trailing 10 years, while Managers Bond (MGFIX) has returned 7.62%, and Dreyfus Intermediate-Term Income (DRITX) is up 7.41%. PIMCO Total Return has returned 7.12% over the same period.

At Calvert, lead manager Greg Habeeb makes bold sector calls and typically has a sizable stake in high-yield debt. Managers Bond is subadvised by Loomis Sayles' Dan Fuss, who currently has one third of assets in bonds rated BBB or lower. Kent Wosepka has run Dreyfus Intermediate-Term for a year and a half. Wosepka will make sector calls, too, as well as hold high-yield and emerging-markets debt.

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