Featuring top performing “Diversified Bond" fixed-
income mutual funds, because they protect investors by diversifying
across sectors. This approach ensures that any negative fluctuation in a
sector only has a slight overall effect on the fund – and its
investors, since various sectors of the bond market react differently to
changes in the economy and interest rates.These funds thus pursue total
return as well as income by investing in a variety of bonds, including
corporate, U.S. government, government agency and mortgage-backed
bonds.Investors can find such diversified bond funds by viewing
the entire list of the Zacks #1 Rank Diversified Bond Fixed-Income
Funds.5 Great Examples of Diversified Bond FundsDelaware
Diversified Income A (DPDFX) seeks maximum long-term total return. It was
incepted in December 1997.This diversified bond fund mainly
invests in three sectors of the fixed-income securities markets, the U.S.
Investment Grade Sector, the U.S. High-Yield Sector, and the
International Sector. This diversified bond fund invests a majority of
its assets, at least 80%, of its net assets in fixed income
securities.The diversified bond fund has an expense ratio of
0.99% against a category average of 0.96%. As of July 2009, it has a
portfolio turnover of 422% against a category average of
226%.Paul Grillo has been lead manager of the fund since February
2001. Grillo joined Delaware in 1992 and is a member of the firm’s
taxable fixed income portfolio management team and asset allocation
committee.MainStay Diversified Income A (MASAX) seeks total
return and current income by investing both in domestic and foreign debt
securities. It was incepted in February 1997.This diversified
bond concentrates on U.S. government and domestic investment grade
securities, high-yield corporate bonds and international debt securities
and wishes to combine high quality, higher return potential and broad
diversification by country, currency, industry and type of security. The
diversified bond undertakes economic and market monitoring, fundamental
research and relative-value analysis in order to identify promising
countries, bond market sectors and securities.
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Shareholders have to make a minimum initial investment of $25,000 to
enter this Zacks #1 Rank ("Strong Buy") fund. This precious metals fund
has an expense ratio of 1.30% against a category average of
1.15%.Dan Roberts has been lead manager of this diversified bond
fund since October 2009. Before joining his current assignment in 2004,
Roberts was the chief investment officer at Pareto
Partners.Pioneer Strategic Income A (PSRAX) seeks a high level of
current income It was incepted in April 1999.The diversified bond
fund invests at least 80% of its assets in a broad range of both issuers
and segments of the debt securities markets. The diversified bond fund
invests in three segments of the debt markets - below investment grade
(high yield) securities of U.S. and non-U.S. issuers, investment grade
securities of U.S. issuers and investment grade securities of non-U.S.
issuers. The proportion of assets allocated among these segments depends
upon the fund advisor's outlook for economic, interest rate and political
trends.The diversified bond fund offers dividends on the last
business day of each month. Capital gains are distributed in November. As
of September 2009, it has a portfolio turnover of 32% against a category
average of 104%.Kenneth J. Taubes has been lead manager of the
fund since April 1999. Taubes has been an investment professional since
1982 and joined Pioneer as a senior vice president in 1998.Nuveen
Multi-Strategy Income A (NCBAX) seeks the highest possible level of
current interest income which is exempt from federal income tax and
California state individual income tax. It was incepted in April
2006.This diversified bond fund invests in investment grade,
long-term municipal securities. It may invest up to 35% of assets in debt
of non-U.S. bond issuers. It may also invest up to 20% of net assets in
high yield debt securities and up to 10% in foreign entities that are
located in emerging markets.Shareholders have to make a minimum
initial investment of $3,000 to enter this Zacks #1 Rank ("Strong Buy")
fund. It has an expense ratio of 0.75 % against a category average of
0.96%.Andrew John Stenwall has been lead manager of this
diversified bond fund since December 2004. Since 2008, Stenwall is an
employee of both Rittenhouse and Nuveen Asset Management and specializes
in global fixed-income and currency markets.Virtus Multi-Sector
Fixed Income A (NAMFX) was incepted in December 1989. The diversified
bond fund aims at maximizing current income while preserving
capital.This diversified bond fund invests in all sectors of the
bond market, concentrating on undervalued sectors and securing gains from
overvalued sectors. At least 80% of the funds assets are invested in
fixed income securities issued or guaranteed by the U.S. Government or
its agencies, in debt securities issued by foreign issuers and in junk
bonds.Shareholders have to make a minimum initial investment of
$500 to enter this Zacks #1 Rank ("Strong Buy") fund. As of July 2009, it
has a portfolio turnover of 91% against a category average of
104%.David L. Albrycht has been lead manager of the fund since
March 1994. Albrycht is a Chartered Financial Analyst and is a senior
managing director with Phoenix Investment Counsel.Discover Many
More FundsLearn more about the new Zacks Mutual Fund Rank and
discover some of the best market-beating mutual funds by browsing our
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 stumble on funds that not only outpaced the market in the
past but are also expected to outperform going forward.