The market’s recent turmoil is prompting some fund managers, particularly bond fund managers, to adjust their holdings, The Wall Street Journal reports.
Diversified stock funds are down 4.1% in the past month and 1.4% in the past three months. Categories that have taken the worst hits include real estate funds, down 14% in the past three months, and financial services funds, down 8.9%. Among bond funds, those that invest in high-yield debt have taken the worst hit, and even ultra-short bond funds are down 0.31% in the past month.
In fact, some junk bond fund managers have moved some of their assets into stocks, including the Oppenheimer Champion Income Fund, which has moved 6% of its assets into stocks. In a recent letter to shareholders, the fund said it would remain “defensively postured [for] the foreseeable future.”
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.