No. of Recommendations: 0
Greetings Codger.

The first thing that jumps out at me is the very short tenure of this fund. According to the 10-31-2011 numbers I am looking at, its basically been out there for 18 months. So there is no 3 year, 5 year, 10 year, 15 year benchmarks to reference. Although past performance is no indication of future performance, its still something tangible at least.

Than I look at the top 15 holdings of the fund which basically consist of a bunch of FHLMC, FNMA bonds and what appears to be long term Citigroup, Wells Fargo, and Deutsche bonds. The good news is that this is approximately 14% or so of the fund, so overall their holdings are really spread out.

If you are willing to take on these kinds of credit quality bonds, there are a whole bunch of individual corp notes out there right now in very viable industries paying out decent yields for short term redemption periods.

But getting back on point, if you are considering adding more money to this fund, I would at least get out the detailed fact sheet or prospectus and see exactly what bonds/companies they are holding. Keep in mind, corp bonds had a really good run earlier in the year. They recently stumbled hard at the end/beginning of the latest quarter, but now have recovered a bit.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.