Multi-Asset Income Funds: Good Barron's Article
The cover story from this morning's Barron's is a review of five diffent multi-asset mutual funds with high current yields. Here 'high' means about 3-6%.
From the article:
So what's the new go-to area for income? Financial advisors are using, on average, 12 investment vehicles to generate income for clients, according to a survey by Cogent Research, a market-research and consulting firm.
The fund rundowns cover the types of investments the managers are holding with some discussions on stocks versus bonds. Most of the fund managers are overweight stocks relative to bonds, but not all. Franklin Income Fund manager Edward Perks talks about comparing Waste Management's stock to its bonds and choosing the stock.
The five mutual funds (all front loaded) profiled are:
BlackRock Multi-Asset Income Investor (BAICX)
Franklin Income (FKINX)
JPMorgan Income Builder (JNBAX)
MFS Diversified Income (DIFAX)
Thornburg Investment Income Builder (TIBAX)
There's also an ETF mentioned, Guggenheim Multi-Asset Income (CVY).
I thought the discussion of different strategies and asset mixes -- stocks, bonds, preferred, emerging markets, REITs, MLPs, junk bonds -- was a good read and recommend the article if you have access to Barron's. Unfortunately, I think it's subscribers only. Barron's is on some news stands (kind of expensive) and a lot of libraries have it if you're near one.
Disclosure: No position in any of the funds mentioned.
Fool on! Russ