I shouldn't have called it a "Managed Bond Fund". It is not a "Fund". It is an account that is managed by an investment firm, and in my case would only manage my bonds (which would stay at Schwab, just in a separate account). There is just a fixed 0.5% annual fee (AUM), no additional fees. I am not surprised it is hard to find by googling. I would get more information before I would invest in it.when you mention these things, you should really get the names of funds so we can properly research them. I see two funds with Frontier: mfg infrastructure and mfg global sustainable (neither of which are managed bond funds). These funds also have a 2% redemption fee, so I'd be careful with actively managed funds; at least closely read the prospectus before investing in anything. You do read the prospectus before investing, right?
They are literally doing the same thing I could do myself, if I decided I wanted to try to figure out how to buy individual bonds. And they are not chasing yields with high risk bonds, they are just carefully managing durations of corporate bonds with high ratings -- in a more flexible way than an ETF could do. For example, an ETF has specific rules they have to follow and is subject to the whims of its investors deciding to sell and such. In this fund the only time a bond would get sold is if it made sense to sell it (because the transaction of selling that bond and buying a different one would end up being a net increase in yield/cap gains).
One of the things I would investigate is what their requirements are for the bond ratings.
Anyway, I am not in a rush to do this, I was just wondering what people thought.
Statistics: Posted by NancyABQ — Tue Oct 15, 2024 11:47 pm