Fixed Income Total Return Bond Funds In Strategic Asset Allocation Portfolios
As promised in our previous newsletter, we will discuss the benefits of using fixed income total return bonds for fixed income portion for a Strategic Asset Allocation based portfolio in this newsletter.
Many readers might have read our previous newsletters on using total return bond fund portfolios listed on Fixed Income Bond Fund Portfolios for the purpose of ‘smart’ cash or the fixed income portion in a tactical portfolio:
- April 13, 2015: Total Return Bond Funds As Smart Cash
- November 10, 2014: Fixed Income Or Cash
- September 15, 2014: Equity And Total Return Bond Fund Composite Portfolios
We have shown that a composite portfolio that consists of a full equity (risk profile 0) Tactical Asset Allocation portfolio which can be ETF or mutual fund based and a total return bond fund portfolio (with the same percentage of the fixed income allocation) can out perform a pure tactical portfolio because of the superior performance of the fixed income portion. The same approach can be used for a strategic portfolio.
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