Bond Funds for Balanced Investors

STRATEGIC INVESTMENTS:

Strategic Investments can be held for the long-term, i.e. for greater than 12-24 months. The investment case for these investments needs to be reviewed on a quarterly basis for next 12 month period. Ideally suited for retirement planning or long term investment planning.

Below list is pulled from the broader shortlist of funds.

USD FOCUS LIST: iShares iBoxx $ Investment Grade Corporate Bond ETF , Natixis Loomis Sayles Core Plus Bond Fund , iShares J.P. Morgan USD Asia Credit Bond Index ETF

SGD FOCUS LIST: United SGD Fund , United Asian Bond Fund

AUD FOCUS LIST: Vanguard Australian Fixed Interest Index ETF


MEDIUM-TERM INVESTMENTS:

Medium term investments are investments at attractive relative valuations with favorable outlook for next 6-12 months. The investment case for these needs to be reviewed on a monthly basis for next 6 month period. Hence more careful monitoring is required than strategic investments. Such investments are suitable for shorter term investment goals but may be used for longer term goals like retirement planning as well, with more careful monitoring.

Below list is pulled from the broader shortlist of funds.

USD FOCUS LIST: SPDR Nuveen Barclays New York Municipal Bond ETF , iShares USD Emerging Markets Corporate Bond UCITS ETF

SGD FOCUS LIST: Currently Nil, for Balanced Investors

AUD FOCUS LIST: Currently Nil, for Balanced Investors


PERFORMANCE DATA:

balanced bond funds


USE OF LEVERAGE:

Leverage can enhance positive returns, while it can hurt more if investments post negative returns. Investors should take less leverage on more volatile investments like growth equities, convertible bonds and very long term bonds ; while safer investments like low volatility high dividend stocks and conventional bonds can be levered more as their price volatility is lower and hence risk of getting a margin call is lower.

Balanced Investors should not take more leverage than 1:1 [i.e. for every 1 dollar of equity, portfolio has 1 dollar of debt].

Below is an illustration of leverage effect on ROE (Return on Equity):

leverage effect.png