In this Advisor Perspectives article, Professor Wade Pfau of The American College discusses whether investors should purchase bond funds or individual bonds that are held until maturity. We really enjoy this article as Wade touches on many points that we strongly believe in. Click here to read the article >>>
In this article, Jeff Benjamin of InvestmentNews explores why financial advisers might benefit by looking once again to institutional investors for guidance with fixed income now that bond yields are poised for a cycle of rising interest rates. Read the article here >>>
In this interview, Jeff Benjamin of InvestmentNews sits down with Brent Burns of Asset Dedication to discuss how the impact of the Federal Reserve’s plan to start dialing back the five-year-long quantitative easing program will change the risk dynamics for bond fund investors and how now may be the right time to bail. Read the interview here >>>
In this letter to the editor of Advisor Perspectives, Asset Dedication’s Stephen J. Huxley, PHD responds to Joe Tomlinson’s article, Retirement Portfolios: Fears over Rising Rates are Overblown. In Steve’s response, he discusses some the weaknesses of the underlying assumptions Joe Tomlinson uses when talking about bond funds in rising interest rate environments. Click here to read the letter >>>
In Jeff Benjamin’s article, Beauty of bonds lost in stampede to the exits, he talks about how investors are losing sight of the need for a volatility buffer and may be leaving bonds for far riskier bandwagons. In the process, Jeff quotes our own Brent Burns saying “For the folks who are really trying to find noncorrelated and less volatile investments, bonds fit that profile, and people own bonds because there is some kind of financial plan, whether it is stated or not,”. Read the full article here >>>
For bond investors worried about what will happen to their principal when interest rates rise, a fixed-maturity bond fund is one solution.
These products, also called defined-maturity or end-date funds, offer the diversification of a bond fund with the known maturity date of an individual bond.
Each fund sets an end date and buys bonds that mature on or shortly before then. Any new money that comes into the fund is put into the same type of bond. Interest payments on the bonds are paid out monthly to shareholders. Read More…