Bond Rush: Slowing the Stampede

Opiela, Nancy
June 2002
Journal of Financial Planning;Jun2002, Vol. 15 Issue 6, p58
Academic Journal
The article focuses on the approach of financial planners in managing bonds in the U.S. Planners admit that conveying bonds' role in a diversified portfolio is easier said than done. There are many options to choose from once clients agree that bonds should be part of their diversified portfolio. That choice depends on the specific purpose a bond will serve in the individual portfolio as well as the planner's outlook for the economy. At present, many planners prefers to keep clients in relatively short-term to intermediate bonds. According to certified financial planner Jocelyn Kaplan of Advisors Financial in Falls Church, Virginia, short-term bond funds are not much affected by interest rates, but offer a higher yield than a conveying bond. With intermediate bonds, you get almost the same rate of return as you do with long-term bonds, but there is less volatility. Many planners prefer bond mutual funds over individual bonds for their clients. Planners using bond funds are mindful that as soon as interest rates start going up, the value of bond funds goes down. Other planners also are keeping a closer eye on the managers of bond funds. In many cases, planners reserve individual bonds for clients with greater assets to dedicate to the bond allocation. Planners' estimates of how much an investor needs before venturing into individual bonds ranged from $100,000 to $500,000. Most agree that if an investor can afford to buy enough bonds to be properly diversified, the control over the income stream is worth the extra effort.


Related Articles

  • Bond Funds. Manson, Derek // Money;Jun2003, Vol. 32 Issue 6, p150 

    Presents three-year performance rankings for bond funds as of June 2003.

  • Bond ambition.  // Money Marketing;4/21/2005, p57 

    Features the Sterling Bond Fund in Great Britain. Type; Aim; Minimum investment.

  • Lipper: Fund launches in Europe hit five-year low. Salih, Chris // Fundweb;12/4/2012, p15 

    The article offers information on the decline in the fund launches in Europe in 2012. It states that a total of 404 funds were launched in third quarter of 2012, down 35 percent fall on the 623 launches for the same period in 2011. It mentions that bonds accounted for 121 of the 404 launches in...

  • Sector Focus: Europe has been the driver for global bond performance.  // Money Marketing (Online Edition);9/5/2013, p53 

    The article comments on the impact of concerns over emerging markets on global bond fund managers. It is said that these concerns have held back the performance of many global bond funds. The bond fund sector has actually underperformed its sterling counterparts over three years to mid-August...

  • Performance persistence and management skill in nonconventional bond mutual funds. Philpot, James // Financial Services Review;Fall2000, Vol. 9 Issue 3, p247 

    Recent empirical research has identified a tendency for equity mutual funds to provide consistent performance relative to other funds over time. Studies of bond funds have centered around investment grade, straight bonds and have concluded that fund managers outperform indexes on a gross...

  • Data Points.  // Money Management Executive;10/27/2003, Vol. 11 Issue 42, p1 

    Presents a graph on the sub-par sales opportunities for bond funds in July and August 2003.

  • FW's 1995 mutual fund annual.  // FW;2/28/95, Vol. 164 Issue 6, p60 

    Presents charts on mutual funds. Corporate bond; Flexible bond; Global bond; Global stock; Gold stock; Government bond; Growth stock; High-yield bond; Hybrid stock; Municipal bond; Sector stocks; Equity fund total return predictor.

  • Platform on which to flourish or fall. Eats, Richard // Fund Strategy;2/6/2006, p16 

    The article reflects on which funds to choose and whether to bought or sold it for a bigger and much faster flow of money into popular funds. Looking at the pattern of fund sales in 2005, the author claims that the top three sectors, making up half of sales, are all in Great Britain. But the key...

  • Bond Funds. Kalwarski, Tara; Freedman, Jonah // Money;Nov2004, Vol. 33 Issue 11, p210 

    Presents three-year performance rankings for bond funds as of October 2004.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics