FMD Capital Management

Posts Tagged: PIMCO

3 Underrated Bond ETFs For Your Income Portfolio

Written by David Fabian, August 25th, 2017

I write a ton of words every week on the topic of building income portfolios using exchange-traded funds.  Some articles are purely an exercise in research and education, while others are directed towards real-world concepts that we are implementing for clients of our firm.

It’s through this process that I often dive into a new fund or sector and compare it to an established group of peers.  It’s also refreshing to see funds that I have reviewed favorably in the past live up to (or exceed) their lofty expectations.  Read more

Volatility In CEFs Is Creating New Opportunities

Written by David Fabian, August 21st, 2017

Virtually every corner of the closed-end fund (CEF) marketplace has been on an unrelenting grind higher over the last 18-months.  Very few pullbacks have meant that you either had to be in these vehicles to capture the capital appreciation from the get-go or grind your teeth and jump in at some random point along the way. Read more

Put TCW’s New Actively Managed Bond ETF On Your Watch List

Written by David Fabian, July 22nd, 2017

I’ve always been a big fan of actively managed bond funds as a way for investors to access risk managed or alpha-generating strategies.  Unlike active stock pickers, the best managers from the likes of PIMCO, DoubleLine, Guggenheim, and Loomis Sayles have proven track records of adding value for their investors versus a passive benchmark.  Fixed-income is still one of those asset classes where sector positioning, duration targeting, and credit selection can make a huge impact on net returns.

Look back through my blog and you will see numerous references to some of my favorite funds like the DoubleLine Total Return Bond Fund (DBLTX) or the PIMCO Income Fund (PONDX).  We have owned both for our clients and in our own accounts for years.  Read more

VIDEO: Closed-End Fund Market Update – Running Hot

Written by David Fabian, February 09th, 2017

This month’s video takes an in-depth look at the closed-end fund marketplace.  Charts include both diversified CEF indexes and single fund names.  Overall the trend remains solid, however we are starting to see stretched premiums and tight discounts across the entire spectrum.  Risk is high and caution should be warranted at this stage of the cycle.  Video recorded after the market close on February 8, 2017.

A log of our previous videos are posted here.

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3 Core Bond ETFs That Are Coping Well With Rising Rates

Written by David Fabian, January 06th, 2017

A reader recently sent me a question asking why you would own a bond fund when interest rates are on the move higher.  This type of sentiment is more than likely on the minds of many investors as they prepare for 2017 and evaluate adjustments to their asset allocation.

The short answer is that every diversified portfolio should have bond exposure to balance out the risk of other asset classes – i.e. stocks and commodities.  Bonds have historically provided a shock absorber for the equity side of the portfolio and have not shown any signs of relinquishing that trait.  Simply letting go of all your bond exposure will unnecessarily tilt your risks and returns towards a single outcome.  Read more