Today we are featuring top-performing “Diversified Bond” fixed-income mutual funds, which primarily invest in variety of bonds in pursuit of total return as well as income.
Investors can find such funds by checking out the entire list of the Zacks #1 Rank Diversified Bond Fixed-Income Funds.
3 Solid Choices
Frontegra Columbus Core (FRIGX) seeks a high level of total return, consistent with the preservation of capital. It typically invests in investment-grade bonds of varying maturities.
While the fund primarily focuses on bonds that are rated BBB or higher, it may invest in securities it believes are undervalued. It evaluates market attractiveness to establish a measure of the portfolio’s duration.
Shareholders have to make a minimum initial investment of $100,000 to enter this Zacks#1 Rank (“Strong Buy”) fund. It distributes dividends quarterly and capital gains annually.
USAA Intermediate-Term Bond (USIBX) was incepted in August 1999. The investment seeks high current income without undue risk to principal.
The fund normally invests at least 80% of assets in a broad range of debt securities. It maintains a dollar-weighted average portfolio maturity between three to ten years.
Matthew R. Freund has been managing the fund since December 2000. It has an expense ratio of 0.65%.
Virtus Multi-Sector Fixed Income A (NAMFX) seeks to generate high current income and total return. It tries to capitalize on opportunities across undervalued sectors of the bond market.
The portfolio seeks diversification among 12 sectors in order to potentially increase return and manage risk. As of March 2009, its portfolio turnover was 54%.
The fund has outperformed its benchmark index in the last 1 year.
Discover Many More Funds
Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.
