Bond funds

With markets near certain that the Fed will lower rates this month, debate has shifted to the size of the cut and its impact.

Investors wary of an intensifying trade war have piled into the firm's bond products, boosting net flows to $151 billion, according to the company.

The decision marks a shift for firm, which has largely ridden its equity-fund offerings.

Expense ratios associated with the new products range from 0.05% to 0.07%.

A new report asks whether the products have the potential to spark another crisis despite being created at the urging of the SEC to reduce risk.

Outstanding options riding the world’s most heavily traded government debt product are near the highest level this year.

Ukraine, Nigeria and Kazakhstan offer opportunities because local developments dominate the direction of their markets, the M&G fund manager said.

Many relatively straightforward products have boosted their holdings of lower-rated bonds and emerging markets to juice returns.

Real estate, communications, utilities and consumer staples funds have seen the most appetite, with every other sector experiencing outflows.

Geopolitical risk, dovish central banks and an aging business cycle are reinforcing bullish moorings in global debt.

An AQR executive just sketched a blueprint for traders seeking to hitch a high-octane ride on the global credit cycle.

The hiring will “reflect the changing nature of fund management,” a company spokeswoman said.

The products have benefited from the past decade of “economic expansion and bull market for risk assets,” one expert says.

Nick Maroutsos’ vision for JUCTX, which lost over half of its assets when the ex-bond king pulled out, is far different from the unconstrained strategy.

The firm plans a 0.2% to 0.5% allocation to the products in its global and international fixed-income index portfolios.

Data reported by the Investment Company Institute.

“Just like equities, last year was a volatile year and the fourth quarter of 2018 did a number on the returns of risk assets,” an expert says.

The renamed Janus Henderson Absolute Return Income Opportunities Fund reflects a “team entity, not a single manager,” new lead manager Nick Maroutsos says.

The development is part of an intensifying price war and focuses more attention on the specter of zero-fee funds.

Data reported by the Investment Company Institute.