Government Bond Funds
Investment funds investing in bonds are among the most secure investment options for investors. They provide regular income and protecting capital. Compare to stock funds, bond funds have low risk and volatility. U.S. government bonds funds are utilizing its assets to purchase Treasury bills, notes and securities issued by government agencies including inflation protected bonds.Government bond funds are among the low risk bond funds as well. The other bond funds are international bond funds, corporate bond funds, senior loan funds, multisector funds, etc. Using closed end funds, investors can maximize their returns through leverage and premium/discount from price & NAV (Net Asset Value).
Best Closed End Funds
The top performing list is sorted based on its year to date performance in 2014. You can find the fund review, performance, expense ratio, dividend yield, fund’s NAV, management, leverage, fund’s sponsor, premium/discount info, etc.Top government bond closed end funds 2014 are:
- Western Asset Inflation Manage
- Western Asset/Claymore Inflation-Linked Opportunities
- Federated Enhanced Treasury Income
- AllianceBernstein Income Fund
- Western/Claymore Inflation-Linked Securities
- EV Tax-Advantaged Bond & Option
Western Asset/Claymore Inflation-Linked Opportunities & Income Fund (WIW)
Western Asset/Claymore Inflation-Linked Opportunities & Income Fund utilizes its assets to buy inflation-linked securities. This closed end fund is managed by Keith J Gardner, Peter Stutz, and Stephen A Walsh. With total assets of 1.04 billion, the fund’s expense ratio fee is 0.73%. The current yield is 3.34%.More: Top 10 Government Bond Mutual Funds
This top government bond closed end fund has returned 2.61% over the past 3 year, and 4.92% over the past 5 year. Top 2 sectors are inflation protected bonds (79%), and foreign government bonds (9.8%).
Federated Enhanced Treasury Income Fund (FTT)
The objective of this top CEF fund is seeking to provide current income, with total return as a secondary objective through investment in U.S. Treasury Securities and U.S. Government Agency Securities. This Federated Enhanced Treasury Income Fund has $128 million of market value. The fund manager is J. Andrew Kirschler. It has a high yield of 3.83%. The annual expense ratio is 1.10%.This top performing government bond CEF fund is not ranked by Morningstar. In 2014, it has year to date return of 7.60%. The past performances are as follow:
- Year 2013: -5.43%%
- Year 2012: 4.99%
- Year 2011: -8.62%
AllianceBernstein Income Fund (ACG)
AllianceBernstein Income Fund is a diversified, closed-end management investment company. It uses its assets to purchase a diversified portfolio of high yielding government and corporate fixed income securities. This best performing fund is currently traded at 11.34% discount from its NAV. It has a distribution rate of 5.59%. The annual expense ratio is 0.62%.
More: Vanguard Emerging Markets Government Bond ETF Fund
Morningstar ranks this government bond closed end fund with silver rating. It has YTD return of 6.83% as of June 2014. The average maturity is 13.94 years. Top 3 sectors are U.S. Treasuries, Corporate High Yield bond, investment grade corporate debt.
Government Bond Funds Performance
| No | Fund Name | Ticker | NAV Price | Yield | Assets | YTD Return % |
|---|---|---|---|---|---|---|
| 1 | Western Asset Inflation Manage | IMF | $18.39 | 3.26% | $130M | 9.85% |
| 2 | Western/Claymore Infl-Lnk Opps | WIW | $13.72 | 3.35% | $735M | 8.42% |
| 3 | Federated Enhanced Treasury In | FTT | $14.81 | 3.82% | $117M | 7.62% |
| 4 | AllianceBernstein Income Fund | ACG | $8.37 | 5.58% | $1,805M | 7.19% |
| 5 | Western/Claymore Infl-Lnkd Sec | WIA | $13.59 | 3.19% | $351M | 7.08% |
| 6 | EV Tax-Advantaged Bond&Option | EXD | $15.43 | 10.02% | $148M | 0.88% |
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