RIABiz

News, Vision & Voice for the Advisory Community

RIABiz

Why unconstrained bond fund skepticism is justified (think 2008, not 2013) and why RIAs should say: None of the above

Brent Burns counter-dissects the Sanders Wommack vivisection of an article written by experts from LPL and Google

Author Guest Columnist Brent Burns October 17, 2014 at 5:44 PM
1 Comment
no description available
Brent Burns: A bond fund is simply a mutual fund that happens to own bonds (or in many cases derivatives) with no obligation to pay back anything.

TAMPs


FAA

FAA

October 17, 2014 — 7:00 PM

I certainly don’t mean to be a nudge on this because I think what the writer is saying makes sense but…

Citing 2008 as the poster child for risks of unconstrained bonds funds is, in my view, not a real good example. The reality of it is that in 2008 everything correlated…in a bad way. It wasn’t just unconstrained bonds. Also- I would imagine that if there was any spread product in the dedicated strategy cited- those bonds didn’t do so well either.

To me the real discussion should be around the utilization of SMBA- separately managed bond accounts vs. mutual funds. So whether it is a dedicated approach, active, spread yada yada- a separately managed account makes more sense for reasons the writer mentioned. It is doable for some but not everyone.

Lastly- dedicated or immunized investment strategies are not new- been around for quite a while.


Related Moves

June 24, 2024 at 11:48 PM

Vanguard Group shows up as 'alpha' disciple with two new fixed-income fund launches as it surpasses PIMCO's $2 trillion with ex-Goldman Sachs partner now calling the shots

The $8 trillion Malvern, Pa. manager owns beta investing, but RIAs are demanding higher income -- hence market timing and cherry picking -- from their fixed-income allocation.

August 10, 2021 at 11:46 PM

Jeff Mello is latest to join eMoney's talent exodus but CEO Ed O'Brien says it's healthy renewal at a firm that added several hundred people since Fidelity bought it

The ex-Goldman Sachs director of strategy and planning at eMoney joins a growing list of departures exacerbated, sources say, by Fidelity putting a wobbly performance reporting software project -- and staff -- on its plate

February 28, 2020 at 11:09 PM

Pete Giza and Damon Deru go for Holy Grail of portfolio rebalancing with software that shuffles stocks, bonds... and asset classes; Believe it?

The RedBlack and TradeWarrior executives see old systems as 'archaic' yet know that the Black Diamonds, Morningstars, Orions and Tamaracs see rebalancing as a loss leader

June 11, 2019 at 9:49 PM


Mentioned in this article:

Investment & Wealth Institute
Association
Top Executive: Sean Walters

Morningstar, Inc.
TAMP
Top Executive: Joe Mansueto



RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING


RIABiz Directory sponsored by:

Directory Sponsor Logo

White Paper Postings


Common Tags


Recent Articles


Popular Writers


RIABiz logo

RIABiz

About Us

Directory

Archives

Connect

RIABiz, Mill Valley, California
Copyright © 2009-2024 RIABiz Inc. All rights reserved.