Top Performer Retirement Income Mutual Funds July 2011

Target Date Mutual Funds are popular among long term investors. One of the target date mutual funds classes is Retirement Income fund. This article will look into the top performer retirement income mutual funds. Some of the best performing funds are: Vanguard Managed Payout Growth Focus fund, PIMCO Real Income 2029 fund, Legg Mason Target Retirement fund, etc. Top Retirement Income Funds

Intro

Retirement income mutual funds are popular among retiree and near retirement age investor. These funds can provide regular income for investors. The funds’ portfolios usually consist of a mix of stocks, bonds and cash for those investors already in or entering retirement. These funds tend to have a conservative asset allocation strategy. These fund portfolios objective is to provide investors with steady income throughout retirement. The following are the Top Performer Retirement Income Funds. The top performer funds are sorted based on its Year to Date performance.

The 15 best retirement income mutual funds 2013 are:

1. Vanguard Target Retirement Income Fund (VTINX)
2. T. Rowe Price Retirement Income Fund (TRRIX)
3. Harbor Target Retirement Income Fund (HARAX)
4. USAA Target Retirement Income Fund (URINX)
5. TIAA-CREF Lifecycle Retirement Income Fund (TLRIX)
6. American Beacon Retirement Income and Appreciation Fund (AANPX)
7. TIAA-CREF Lifecycle Index Retirement Income Fund (TRILX)
8. Russell LifePoints In Retirement Fund (RZLRX)
9. Legg Mason Target Retirement Fund (LMPAX)
10. MFS Lifetime Retirement Income Fund (MLLAX)
11. American Century Asset Allocation Portfolios LIVESTRONG Income Portfolio (ARTAX)
12. JPMorgan SmartRetirement Income Fund (JSRAX)
13. Vantagepoint Milestone Retirement Income Fund (VPRRX)
14. Manning & Napier Target Income Series Fund (MTDCX)
15. BlackRock LifePath Retirement Portfolio (LPRAX)

Last update: 5/5/2013

The 10 Top Performer Retirement Income Mutual Funds July 2011 are:

1. Vanguard Managed Payout Growth Focus Inv
2. PIMCO Real Income 2029 A
3. Vanguard Managed Payout Growth & Distribution Inv
4. Vanguard Managed Payout Distribution Focus Inv
5. Legg Mason Target Retirement A
6. PIMCO Real Income 2019 A
7. American Century LIVESTRONG Income Inv
8. Fidelity Income Replacement 2042
9. TIAA-CREF Lifecycle Retire Income Retail
10. Schwab Monthly Income Mod Payout

New: Top Performer Target Date Mutual Funds of 2011.

Vanguard Managed Payout Gr Focus Inv (VPGFX)

The Vanguard Managed Payout Growth Focus fund objective is to provide monthly distributions of cash while providing inflation protection and capital appreciation over the long term. This Vanguard fund invests in Vanguard mutual funds and other investments according to an asset allocation strategy designed to provide shareholders with regular cash flow from their investments in the fund.

This mutual fund may allocate assets across a broadly diversified selection of opportunities--such as stocks (including stocks issued by REITs), bonds, cash, inflation-linked investments, and selected other investments--in proportions that reflect the advisor's evaluation of their expected returns and risks as an integrated whole.

This retirement income fund is managed by Michael H. Buek since its inception on May 2008. Since this fund is new, it has gotten 1-star rating from Morningstar for its 2 years positive performance since inception. Currently this VPGFX fund is on the 1st rank in the category. The performance of this top performer fund is 25.90% in year 2009 and 14.43% in year 2010. The YTD return is 7.69%. This fund shares a yield of 3.06%. This Vanguard fund is a no load fund.

This fund is available for purchase from a limited brokerages list only.

The asset allocation of this fund as of June 2011 is Stocks (84.56%), Bonds (5.04%) and Others (10.40%). The top 10 portfolio composition is 45.3% in Vanguard Total Stock Market Index Fund Investor Shares (VTSMX), 19.6% in Vanguard Total International Stock Index Fund Investor Shares (VGTSX), 9.9% in Vanguard Market Neutral Fund Investor Shares (VMNFX), 9.8% in Vanguard REIT Index Fund (VGSIX), 5.0% in Vanguard Intermediate-Term Investment-Grade Fund Investor Shares (VFICX) and 10.4% in Others.

PIMCO Real Income 2029 A (MUTF: POIAX)

The PIMCO Real Income 2029 fund seeks to provide consistent real (inflation-adjusted) distributions through its maturity date in 2029. This PIMCO fund invests majority of net assets (>90%) in inflation-indexed bonds issued by the U.S. Treasury. It may invest in other securities issued by the U.S. Treasury, futures contracts on U.S. Treasury securities, and money market instruments. Inflation-indexed bonds are fixed-income securities that are structured to provide protection against inflation.

The fund invests in short-, intermediate- and long-term securities in a laddered investment strategy to facilitate regular distributions through its maturity date in 2029.

Since this fund is new, it hasn’t gotten any rank from Morningstar yet. But this fund has 7.62% YTD return. This fund has returned 10.78% over the past one year. The performance of this fund in 2010 was 6.99%. The new fund's manager is Rahul M. Seksaria. He is the Senior Vice President of PIMCO and has managed this fund since May 2011. The annual expense ratio of this POIAX fund is 0.79%.

Should you are interested to invest in this fund, it can be purchased from a limited selection of 17 brokerages only. The minimum initial investment for brokerage account is $1,000 with $50 minimum subsequent investment. This fund has 0.25% of 12b1 fee and 3.75% of front-end sales load. The last dividend distributed was in June 2011 (0.05%). This fund is available in any other classes, such as Class C (PORCX), Class D (PORDX), Class Institutional (PRIIX) and Class P (PRQCX). As of June 2011, the sector breakdown of this fund is 90% in Government – Treasury and 10% in Money Market and Net Cash Equivalents. This fund has the average maturity of 10.06 years and average duration of 6.55%.

Legg Mason Target Retirement A (LMPAX)

The Legg Mason Target Retirement fund is seeking to achieve the highest total return over time consistent with its asset mix. The fund invests in a combination of underlying funds representing a variety of asset classes (equity, fixed income and real estate) and investment styles. This Legg Mason fund typically allocates the assets as follows 30% in equity funds, 65% in fixed-income funds, and 5% in real estate related funds.

Steven D. Bleiberg has managed this Legg Mason fund since its inception in August 2008. This retirement income fund shares a dividend yield of 3.10%. The annual expense ratio is 0.45%. The last dividend was distributed in June 2011 (0.03%). As this fund is still new, it hasn’t gotten any Morningstar rating yet. But this fund has a 5.99% YTD return and has returned 14.39% over the past year. Rated number five in this list, the LMPAX fund has 0.25% 12b1 fee and 5.75% front-end sales load fee. The minimum amount needed to invest in the brokerage account of this fund is $1,000 and $250 for IRA account.

This top performer fund is currently available for purchase from 28 brokerages like JP Morgan, Scottrade Load, etc. Investor may choose from the other classes of this Legg Mason fund such as Class C (LMRCX), Class FI (LMRPX), Class I (LMIMX), Class IS (LMRSX), Class R1 (LMRFX) or Class R (LMERX).

As of June 2011, the top holdings of this LMPAX fund represent 88.4% of total portfolio. They are WA Core Bond Portfolio (38.6%), LM BW Global Opportunities Bond Fund (13.6%), WA High Yield Portfolio (6.7%), iShares MSCI EAFE Index Fund (5.4%), Vanguard REIT Index Fund (5.1%), LM Strategic Real Return Fund (5.0%), LM BFM International Equity Trust (4.2%), LM GC International All Cap Opportunity Fund (4.1%), Royce Value Fund (3.2%) and iShares Russell 1000 Value Index Fund (2.4%).

American Century LIVESTRONG Income Investor (ARTOX)

The American Century LIVESTRONG Income fund seeks current income. The fund’s secondary objective is to achieve capital appreciation. As fund of funds, this American Century fund invests in other American Century mutual funds that represent a variety of asset classes and investment styles. The target asset mix for LIVESTRONG Income Portfolio is expected to remain fixed over time with a 45% allocation to equities (stocks), 45% allocation to fixed income securities (bonds), and 10% allocation to cash.

This American Century fund has 4-stars rating from Morningstar for its 5 years achieving positive performance since 2004. This best rated fund has 5.30% YTD return. It distributes a dividend yield of 2.21%. This ARTOX fund has expense ratio of 0.21% every year. This figure is lower compared to the average in the Retirement Income category (0.60%). The fund managers of this fund are Enrique Chang, Scott Wittman, Richard Weiss, Irina Torelli and Scott Wilson.

If you are interested to invest in this fund, the minimum amount needed to open a brokerage account is $2,500 with $50 minimum subsequent investment. This fund is not available in IRA account yet. This is a no load fund, meaning there is no 12b1 fee and no sales load fee. The annual holdings turnover rate of this fund is relatively low as well (4.0%). The other classes of this fund are Institutional Class (ATTIX), Class A (ARTAX), Class C (ATTCX) and Class R (ARSRX). Please check with your brokerage account about how to buy this mutual fund.

This Livestrong Income fund is a ‘fund of funds’ as it seeks to achieve its goal by investing in other American Century Investments mutual funds. The portfolio of this fund as of December 2010 is 45.0% in Stocks Funds, 45% in Bonds Funds and 10% in Money Market Funds.

Fidelity Income Replacement 2042 (FIXRX)

The Fidelity Income Replacement 2042 fund is seeking total return through a combination of current income and capital growth. The fund typically invests in a combination of underlying Fidelity equity, fixed-income, and short-term funds using an asset allocation strategy designed to achieve a level of total return consistent with a payment strategy to be administered through the fund's horizon date, December 31, 2042.

This Fidelity fund is considered as fund of funds. Since its inception in 2007, this fund has performed in 2 years with positive return and one year in negative return. The performances are as follow:

• Year 2008: -30.02%
• Year 2009: 28.91%
• Year 2010: 13.75%

Andrew Dierdorf has managed this fund since June 2009. The yield of this fund is $1.82%. The fund is a no load fund, therefore it applies no management fee and no front end sales load fee as well. To invest in this fund, investor may need $25,000 for the minimum initial investment in brokerage account. This fund can be purchased from 23 brokerages.

The CUSIP of this fund is 31617L863. The asset allocation of this fund as of June 2011 are 64.22% in Equity Funds, 32.25% in Bond Funds and 3.53% in MM/Short-Term Fds & Net Other Assets. The top sectors of this fund as of May 2011 are Financial Services (16.15%), Technology (14.25%), Consumer Cyclical (12.26%), Industrials (12.22%) and Energy (11.36%).

TIAA-CREF Lifecycle Retire Income Retail (TLRRX)

The TIAA-CREF Lifecycle Retire Income fund objective is to seek high total return over time mainly through income, with a secondary emphasis on capital appreciation. The fund invests primarily in underlying funds according to a fixed, more conservative asset allocation strategy designed for investors who are already in or entering retirement.

Currently, This TIAA CREF fund invests in a diversified portfolio consisting of about 40% stocks or equities and 60% bonds or fixed incomes.

This retirement income fund has been managed by Pablo L. Mitchell since its inception in November 2007. The fund’s net asset is $113.73 million. It has 0.16% annual expense ratio and 5.0% annual turnover rate. This fund has YTD return of 5.19%. Morningstar has rated this fund with 4-star rating.

To invest in this top performer and best fund, investor will need a minimum of $2,500 for brokerage account and $2,000 for IRA account. There is a 0.13% of management fee, but no front-end sales load fee. Currently this fund is only available for purchase from a limited of 4 brokerages only. They are Vanguard, Pershing Fund Center, Pershing FundVest NTF and MSSB Mass Mutual.

As of March 2011, the target allocation of TLRRX fund is 60.0% in equities and 40.0% in non-equities. And the top 10 holdings of this fund are TIAA-CREF Bond Fund (38.9%), TIAA-CREF Inflation-Linked Bond Fund (10.0%), TIAA-CREF Short-Term Bond Fund (9.9%), TIAA-CREF Large-Cap Growth Fund (5.6%), TIAA-CREF Enhanced Large-Cap Growth Index Fund (5.5%), TIAA-CREF Enhanced Large-Cap Value Index Fund (5.5%), TIAA-CREF Large-Cap Value Fund (5.5%), TIAA-CREF Growth & Income Fund (4.7%), IAA-CREF International Equity Fund (4.0%) and TIAA-CREF Enhanced International Equity Index Fund (4.0%).

Schwab Monthly Income Mod Payout (SWJRX)

The Schwab Monthly Income Mod Payout fund objective is to provide current income; capital appreciation is a secondary consideration. The fund invests predominantly in a combination of Schwab funds and Laudus funds (the underlying funds) in accordance with its target asset allocation. It may invest <100% of assets directly in cash, money market, repurchase agreements and other short-term obligations.

This SWJRX fund has total net asset of $22.45 million. It shares 2.59% dividend yield. The last dividend distributed in July 2011 was 0.02%. This fund is managed by Daniel Kern since October 2008. The expense ratio of this fund is 0.0%. This Schwab fund is also a no load fund, means no management fee and no front-end sales load or deferred sales load. The minimum initial investment needed to open a regular brokerage account is $100.

For these past two years after its inception, the annual total return of this Schwab fund was 10.35% in year 2010 and 15.76% in year 2009. Currently it has 5.14% YTD return. This SWJRX fund has gotten 5-stars rating from Morningstar.

As of January 2011, the top sectors of this best fund are Financials (33.84%), Information Technology (13.53%), Consumer Discretionary (11.45%), Industrials (9.81%) and Energy (8.14%). The asset breakdown is 45.8% in domestic bonds, 26.24% in domestic stocks, 12.51% in foreign stocks, 8.13% in cash, 7.04% in foreign bonds, 0.21% in preferred and 0.07% in miscellaneous.

Disclosure: No Position

Note: Some of these funds may be new and don’t have long term performance history.

Top Performers Performance

No	Name	Ticker	Rating	Yield	Expense Ratio	Load	Net Assets (mil)	Min to Invest
1	Vanguard Managed Payout Gr Focus Inv	VPGFX	1	3.13%	0.24%	0.00%	$70	$25,000
2	PIMCO Real Income 2029 A	POIAX	N/A	5.34%	0.79%	3.75%	$8	$1,000
3	Vanguard Managed Payout Gr & Dis Inv	VPGDX	2	4.32%	0.24%	0.00%	$308	$25,000
4	Vanguard Managed Payout Dis Focus Inv	VPDFX	2	6.37%	0.25%	0.00%	$443	$25,000
5	Legg Mason Target Retirement A	LMPAX	N/A	3.10%	1.15%	5.75%	$3	$1,000
6	PIMCO Real Income 2019 A	PCIAX	N/A	11.16%	0.79%	3.75%	$20	$1,000
7	American Century LIVESTRONG Inc Inv	ARTOX	4	2.21%	0.76%	0.00%	$303	$2,500
8	Fidelity Income Replacement 2042	FIXRX	3	1.82%	0.68%	0.00%	$6	$25,000
9	TIAA-CREF Lifecycle Retire Inc Retail	TLRRX	4	0.04%	0.63%	0.00%	$16	$2,500
10	Schwab Monthly Income Mod Payout	SWJRX	4	2.59%	0.75%	0.00%	$22	$100
11	Fidelity Income Replacement 2036	FIRUX	3	1.75%	0.65%	0.00%	$3	$25,000
12	BlackRock LifePath Retirement Investor A	LPRAX	3	2.08%	1.10%	5.25%	$668	$1,000

Best Retirement Income Fund articles:

• Vanguard Target Retirement Income (VTINX)
• T Rowe Price Retirement Income Fund (TRRIX)
• American Beacon Retirement Income and Appreciation Fund (AANPX)

Vanguard Energy Fund (VGENX)

Energy sector fund has outperformed other sector equity fund for the past 3 years. The following Vanguard Energy fund is among the best rated energy sector stock fund. Details about the fund can be found below.

Vanguard Energy Fund (MUTF: VGENX)

The Vanguard Energy Fund seeks long-term appreciation of capital. This Vanguard fund invests >80% of its assets in the energy industry companies with engagement as production and transmission of energy or energy fuels; the making of component products for such activities; energy research; and energy conservation. It may invest <100% of its assets in foreign stocks.

VGENX Fund Details

Vanguard Energy Fund details

• Fund Inception Date: May 23, 1984
• Ticker Symbol: VGENX
• CUSIP: 921908109
• Beta (3yr): 1.15
• Rank in category (YTD): 19
• Category: Equity Energy
• Distribution: 1.36%                        
• Capital Gains: N/A
• Number of Years Up: 20 years     
• Number of Years Down: 6 years
• Total Net Assets: $14.14 billion

Updated July 31th, 2011

Matthews Asia Dividend Investor Fund (MAPIX)

Emerging Markets equity sector has been one of the best performing equity funds for the past 3 years. The Asia Pacific sector is among the best sector of this emerging markets fund. One of this best rated Asia Pacific equity funds is Matthews Asia Dividend fund. Details about this fund can be found below.

Matthews Asia Dividend Investor (MUTF: MAPIX)

  

The Matthews Asia Dividend Investor fund objective is to seek total return with an emphasis on providing current income. The fund typically invests majority of total net assets (>80%) in income-paying publicly traded common stocks, preferred stocks, convertible preferred stocks, and other equity-related instruments of companies located in the Asia Pacific region. This Matthews fund expects to invest in attractive dividend yields companies with possibility to increase their dividends.

MAPIX fund

MAPIX Fund Details

• Fund Inception Date: October 2006
• Ticker Symbol: MAPIX (Investor Class)
• CUSIP: 577 125 107                                       
• Beta (3yr): 0.74                
• Rank in category (YTD): 5
• Category: Diversified Pacific / Asia                          
• Yield: 3.19%                      
• Capital Gains: N/A
• Number of Years Up: 3 years       
• Number of Years Down: 1 year
• Total Net Assets: $2.44 billion

updated on July 26th, 2011

Top 10 Short Term Bond Mutual Funds July 2011

This post is about top performer short term bond mutual funds of 2011. The best funds are Virtus Multi-Sector S/T Bd, Thornburg Limited Term Income, Thompson Plumb Bond, etc.

Top Performers

The following short term bond funds are sorted based on its performance up to July 24, 2011. These funds may also best in its class and has performed as top notch funds for the past 3, 5, and 10 years. Details about its performance will be provided on the last table.

Top Short Term Bond Funds 2011

Top 10 Short Term Bond Mutual Funds (up to Jul 24th, 2011) are:

1. Virtus Multi-Sector S/T Bd A (NARAX)
2. Thornburg Limited-Term Income A (THIFX)
3. Thompson Plumb Bond (THOPX)
4. Metropolitan West Strategic Income I (MWSIX)
5. Vanguard Short-Term Corp Bd Idx Instl (VSTBX)
6. Columbia Limited Duration Credit A (ALDAX)
7. Prudential Short-Term Corporate Bd A (PBSMX)
8. Delaware Limited-Term Diversified Inc A (DTRIX)
9. DFA Short-Term Extended Quality Instl (DFEQX)
10. Maxim Short Duration Bond (MXSDX)

Fund Information

No	Name	Ticker	M* Rating	Yield	Expense Ratio	Load	Net Assets (mil)	Min to Invest
1	Virtus Multi-Sector S/T Bd A	NARAX	5	4.76%	1.07%	2.25%	$4,400	$2,500
2	Thornburg Limited-Term Income A THIFX	THIFX	5	3.57%	0.99%	1.50%	$1,200	$5,000
3	Thompson Plumb Bond	THOPX	5	3.24%	0.80%	0.00%	$583	$2,500
4	Metropolitan West Strategic Income I	MWSIX	3	5.15%	1.97%	0.00%	$230	$ 3 mil
5	Vanguard Short-Term Corp Bd Idx Instl	VSTBX	N/A	2.39%	0.09%	0.00%	$1,800	$ 5 mil
6	Columbia Limited Duration Credit A	ALDAX	3	3.30%	0.85%	3.00%	$834	$2,000
7	Prudential Short-Term Corporate Bd A	PBSMX	4	3.98%	0.77%	3.25%	$4,600	$2,500
8	Delaware Limited-Term Diversified Inc A	DTRIX	4	2.54%	0.83%	2.75%	$2,100	$1,000
9	DFA Short-Term Extended Quality Instl	DFEQX	N/A	2.55%	0.22%	0.00%	$1,200	$0
10	Maxim Short Duration Bond	MXSDX	5	2.89%	0.60%	0.00%	$71	$0
14	Lord Abbett Short Duration Income A LALDX	LALDX	5	4.29%	0.60%	2.25%	$14,000	$1,000

updated on July 29,2011

1.  Virtus Multi-Sector Short Term Bond A (MUTF: NARAX)

As the Top Performer fund, this Virtus Multi-Sector Short Term Bond investment seeks to offer high current income while attempting to limit changes in the fund's net asset value per share caused by interest rate changes. This Virtus fund seeks current income with an emphasis on preserving low volatility and overall short duration by investing primarily in higher quality (i.e. investment grade), more liquid securities across the multiple bond market sectors. It usually invests most of assets (>80%) in bonds, which are fixed income debt obligations of various types of issuers. The fund invests in a diversified portfolio of primarily short-term fixed income securities having an expected dollar-weighted average maturity of < 3 years.

Virtus Multi Sector S/T Bond

This Virtus fund was introduced to public in October 1997. The lead manager is Kyle A. Jennings. He has managed the fund since June 2011. This fund shares a dividend yield of 4.45% per year. The last dividend distributed in May 2011 was $0.02. This fund has total net assets of $4.19 billion. The fund currently has a net expense ratio of 1.32% per year. It has 0.50% 12b1 fee but has no front-end sales load fee.

This PSTCX fund can be purchased from 44 brokerages, such as JP Morgan, Edward Jones, Schwab, etc. The minimum initial investment for the brokerage account is $2,500 with $100 minimum subsequent investment. The other classes of this fund are Class B (PBARX), Class C (PSTCX), Class I (PIMSX) and Class T (PMSTX).

As the top rated fund, this Virtus fund also has received 5-stars rating from Morningstar. It has performed in 12 positive return years and only 1 year with negative return (occurred in 2008 with -14.28%). It has YTD return of 4.13%. This fund has returned 9.14% over the past one year and 6.60% over the past five years.
As of June 2011, this fund has 856 holdings. The top sector allocations of this fund are Investment Grade Corporate bonds (20.07%), Non-Agency Commercial MBS (18.47%), Asset Backed Securities (13.17%), High Yield Corporate bonds (10.98%), and Bank Loans (10.41%).

2. Thornburg Limited-Term Income A (MUTF: THIFX)

The Thornburg Limited-Term Income fund objective is to achieve high current income consistent with safety of capital. The Thornburg fund invests >65% of net assets in (i) obligations of the U.S. government, and its agencies and instrumentalities, and (ii) debt securities rated in one of the three highest ratings of rating agencies (S&P, Moody’s, advisor opinion). It does not invest in any debt security rated lower than BBB by S&P or Baa by Moody of equivalent quality as determined by Thornburg.

The lead managers of this Thornburg fund are Jason Brady and Lon Erickson. The fund has a sales load of 1.5% and the fund current expense ratio is 0.99%. It also has a yield of 3.57% for the past 12 months.

Thornburg Limited Term Income

This fund can be purchased from 87 brokerages. Please check with your brokerage for details. The minimum initial investment for the brokerage account is $5,000 with the next minimum subsequent investment of $100. This fund has 0.99% of annual expense ratio. This THIFX fund is available in other class, such as Class C (THICX) and Class I (THIIX). The capital gains of this fund are paid annually while the dividends are paid monthly.

This THIFX fund has 4.10% YTD return. Morningstar also rated this fund with 5 stars rating. The performance of this fund is as below:

• 1-year: 5.23%
• 3-years: 7.44%
• 5-years: 6.31%
• 10-years: 5.12%

As of June 2011, this fund has 369 total bonds. The average maturity is 4.2 years and the effective duration is 3.2 years. The portfolio composition of this fund as of the second quarter is 55.4% in Corporate Bonds, 12.7% in Collateralized Mortgage Obligation, 10.5% in Taxable Municipal Bonds, 4.7% in Asset Backed Securities, 2.7% in Commercial Mortgage Backed Securities, 2.7% in Government Agency, 2.7% in Treasury Securities, 2.4% in Mortgage Pass Through and 6.4% in <1 year and Cash.

3. Thompson Plumb Bond (Ticker: THOPX)

Thompson Plumb Bond Fund details

The Thompson Plumb Bond fund is seeking a high level of current income while preserving capital. The fund usually invests majority of net assets (>80%) in diversified portfolio of bonds. Although it invests mainly in investment-grade debt securities, it may invest some of net assets (<10%) in bonds rated below investment grade. These below investment grade bonds along with the other bonds in the fund's portfolio comprise at least 80% of the fund's total assets. The fund may invest up to 20% of net assets in other non-debt securities. The dollar-weighted average portfolio maturity of the fund will normally not exceed 10 years.

This Thompson Plumb bond has been managed by John W. Thompson since its inception in February 1992. The fund annual expense ratio is 0.80%. It is a no load fund, meaning it has no management fee or sales load fee. The fund’s yield is 3.24% for the past 12 months. The dividend is distributed on quarterly basis. It has gotten 5-stars rating from Morningstar. The fund has year-to-date return of 3.99%. For the past 1 year, this fund has returned 6.32% and 11.61% for the past three years. You will need a minimum of $2,500 to open a brokerage account in this fund.

This taxable bond fund has 528 holdings (as of June 2011). The largest bond holdings are Bank of America 3.10%), Morgan Stanley (2.67%), SLM Corp (2.20%), Masco Corp (2.19%), Wynn Las Vegas (2.18%), Con-way (2.18%), Fidelity National Financial (2.17%), Freeport-McMoRan Copper & Gold (2.14%), Zions Bancorporation (2.09%) and Montpelier Re Holdings (2.08%).

4. Metropolitan West Strategic Income I (MUTF: MWSIX)

The Metropolitan West Strategic Income fund seeks to maximize long-term total return without tracking any particular indices or markets. This Metropolitan West fund uses techniques intended to provide absolute (positive) returns in all markets and employs a strategy intended to produce high income while exploiting disparities or inefficiencies in markets. It focuses on inefficiencies between secured or asset-backed debt and unsecured and subordinated debt or equity of companies and issuers. Additionally, the fund focuses on longer-term cyclical anomalies in the fixed income markets. The fund may invest <25% of assets in below investment grade debt securities. It is non-diversified fund.

Metropolitan West Strategic Income

This short term bond fund has an expense ratio of 1.97% per year. It has a yield of 5.15%. This fund has been managed by Laird M. Landmann since June 2003, but this fund was introduced to public in March 2004. This MWSIX fund is part of no load fund (i.e. there is no sales load). Morningstar has rated this fund with 3-stars rating. Besides the Institutional Class, this fund is also available in Retail Class (MWSTX).

As of March 2011, this top performer mutual fund has 237 securities. The average duration is 1.9 years and average maturity is 6.2 years. The top sectors of this fund are MBS (45.2%), Corporate (24.4%), ABS (14.8%), UST/AGY (8.1%), Cash and Equivalents (7.2%), and Others (0.3%).

5. Vanguard Short-Term Corporate Bond Index Institutional (VSTBX)

The Vanguard Short-Term Corporate Bond Index Institutional investment seeks to track the Barclays Capital U.S. 1-5 Year Corporate index performance. The index includes U.S. dollar-denominated, investment-grade, fixed-rate, taxable securities issued by corporatse such as industrial, utility, and financial companies. This index fund will have maturities between one and five years.

Vanguard Short Term Corporate Bond Idx

This Vanguard fund has been managed by Joshua C. Barrickman since its inception in November 2009. Since this fund is new, it hasn’t gotten any rank from Morningstar yet. It has 3.64% YTD return. Currently this fund is positioned on 3rd rank in this top performer category. This fund has the lowest expense ratio of all the funds mentioned here (0.09% annually). This is also a no load fund.

To purchase this fund, please check with your brokerage for details since it is limited. One alternative is to buy the Vanguard Short-Term Corporate Bond ETF which is the ETF class. This fund ticker is VCSH. The VCSH fund only has 0.15% expense ratio.

This Short-Term Corporate Bond is available in Signal Class (VSCSX) and ETF (VCSH). The expense ratio of the VCSH is 0.15%. The benchmark of this fund is Barclays US 1-5 year Corporate Index. As of June 2011, the average duration of this fund is 2.8 years and average maturity 3.0 years with 4.6% average coupon. The bond allocation is 47.0% in industrial, 44.9% in finance, 7.5% in utilities and 0.6% in treasury/ agency.

6. Columbia Limited Duration Credit A (Ticker: ALDAX)

The Columbia Limited Duration Credit fund objective is to provide current income consistent with capital preservation. This Columbia fund invests >80% of net assets in credit-related bonds and debt securities. It mainly invests in debt securities with short- and intermediate-term maturities. The fund invests in corporate bonds and agency, sovereign / government, supranational and local authority bonds. It invests <15% of net assets in securities rated below investment grade (i.e. Junk bonds). It may also invest <25% of net assets may in foreign investments.

Columbia Limited Duration Credit

This short term bond fund is managed by Timothy Doubek since April 2009. It gives 3.30% of yield. The last dividend was distributed in June 2011 was 0.02%. ALDAX fund has 0.85% annual expense ratio. It has 12b1 fee of 0.25% and front-end sales load of 3%.

This ALDAX fund has performed in 6 years of positive return and 1 year in negative return. It results in 2.91% of YTD return. This fund has return 4.99% over the past year and 5.16% over the past five years. It has gotten 3-stars Morningstar rating.

The minimum initial investment needed to open a brokerage account is $2,000 and $1,000 for IRA account. The minimum subsequent investment is $100. This Columbia fund can be purchased from 63 brokerages. Investor can choose from any other classes of this fund such as Class B (ALDBX), Class C (RDCLX) and Class Z (CLDZX).

As of June 2011, the assets allocation of this fund is 83.4% in Domestic Bonds, 13.0% in Foreign Bonds and 3.6% in Cash or Cash Equivalent. While the sector allocations are Invest Grade (86.8%), High Yield (9.5%), Cash (3.6%) and US Treasury / Agency/ TIPS (0.1%). This fund has a total of 134 holdings as of June 2011.

7. Prudential Short-Term Corporate Bond A (Ticker: PBSMX)

The Prudential Short-Term Corporate Bond fund seeks income consistent with the preservation of principal. The fund invests majority of the investable assets (>80%) in corporations bonds with varying maturities. It also invests <35% of total assets in dollar-denominated obligations issued in the U.S. by foreign governments and corporations. The fund may also invest <20% of total assets in US Government bonds. It may invest <20% of the investable assets in junk bonds (i.e. below investment-grade fixed income). The effective duration of the fund's portfolio will generally be < 3 years.

Prudential Short Term Corp. Bond

Steve Kellner has been the lead manager of this Prudential bond fund since August 1999. The fund’s expense ratio is 0.77% per year. It also has 0.30% 12b1 fee and 3.25% front end sales load. This fund shares 3.98% yield. It has paid out the last dividend in June 2011 as much as 0.03%. It has 82.0% annual holdings turnover.

Best Performer Diversified Bond Mutual Funds

Morningstar has rated this fund with 4-stars as this fund has gained 20 years of positive return and only 1 year of down performance (in 2008 with 0.77%). This fund has 2.68% of YTD return and has returned 4.71% over the past ten years.

You can invest in this fund with $2,500 initial balance for regular brokerage account and $1,000 for IRA account. The next minimum subsequent investment is $100. This fund can be purchased from a wide selection of 103 brokerages. Investor can also select other classes of this fund such as Class B (PSMBX), Class C (PIFCX), Class R (JDTRX) or Class Z (PIFZX). The Class R and Z have gotten 5-stars rating from Morningstar.

The top ten holdings out of 698 total holdings are Bank of America (3.4%), Citigroup (3.1%), JP Morgan Chase (3.1%), General Electric (2.6%), Goldman Sachs (2.4%), Morgan Stanley (2.2%), Verizon Communications (2.0%), AT&T (1.9%), Wells Fargo (1.7%) and American Express (1.2%).

8. Delaware Limited-Term Diversified Income A (DTRIX)

The Delaware Limited-Term Diversified Income fund is seeking maximum total return, consistent with reasonable risk. The fund invests <80% of net assets in investment-grade fixed-income securities such U.S. government and U.S. corporation bonds. It may invest <20% of net assets in below investment-grade securities (i.e. junk bonds). The fund may also invest <30% of net assets in foreign securities, including <10% of net assets in emerging markets issuers. It retains an average effective duration from 1  to 3 years.

Delaware Limited Term Diversified Inc

This Delaware fund was introduced to public in November 25, 1985. And Paul Grillo has been the lead manager since February 1999. Paul Grillo is the CFA Senior Vice President. This fund has 0.83% annual expense ratio. It distributes a yield of 2.54% for the past 12 months. This fund has received 4-stars rating from Morningstar. The fund’s total net asset is $2.11 billion. If you are interested to invest in this fund, please note that there is 0.30% 12b1 fee and 2.75% front-end sales load fee.

The minimum initial investment for brokerage account is $1,000 and $250 for IRA account. This fund can be purchased from 94 brokerages such as JPMorgan, Fidelity, Scottrade, etc.

This DTRIX fund has performed in 24 years with positive return and 1 year in negative return. The best performance was in 2009 with 12.91% and the worst in 1999 with 1.06%. It has 2.66% YTD return. This fund is available in other classes, such as Class C (DTICX), Institutional Class (DTINX) and Class R (DLTRX). The benchmark of this fund is Barclays Capital 1-3 Year Government/ Credit Index.

As of June 2011, this fund has 505 holdings. The portfolio composition is 39.3% in Credits, 25.6% in Mortgage-backed securities, 19.8% in U.S. government securities, 13.5% in Asset-backed securities and 1.8% in Commercial mortgage-backed securities. While the top sectors are Investment grade credits (26.2%), MBS & CMOs (25.6%), Asset-backed Securities (13.5%) and International developed (6.5%).

9. DFA Short-Term Extended Quality Institutional (MUTF: DFEQX)

The DFA Short-Term Extended Quality Institutional fund objective is to maximize total returns from the universe of debt securities. The fund invests in a universe of investment grade U.S. and foreign corporate debt securities. It mainly invests in securities that mature within five years from the date of settlement and maintains an average portfolio maturity and an average portfolio duration of three years or less. The fund normally invests at least 80% of net assets in fixed income securities considered to be investment grade quality.

DFA DFEQX fund characteristics

David A. Plecha has managed this short term bond fund since its inception in March 2009. This DFEQX is a no load fund. It has no 12b1 fee and no sales load fee. The net expense ratio of this fund is 0.22%. Since this fund is new, there is no Morningstar rating yet. The YTD return was 2.64%. This DFA fund has achieved rank 9th in this top performer category. This fund has 2.58% yield.

The benchmark of this fund is BofA Merrill Lynch US Corporate and Government Index 1-5 Years. As of May 2011, the average maturity of this fund is 2.89 years and duration of 2.70 years. The top 5 holdings as of June 2011 are PNC Capital Markets Repo (2.4%), Cooperatieve Centrale Raiffeisen-Boerenleenbank BA (1.33%), Google Inc (1.2%), Province of Ontario Canada (0.90%) and Toyota Motor Credit Corp (0.88%).

14. Lord Abbett Short Duration Income A (LALDX)

The Lord Abbett Short Duration Income fund is seeking a high level of income consistent with capital preservation. The fund typically invests <65% of net assets in investment grade debt securities of various types. Such securities may include short duration investment grade domestic and foreign corporate debt securities, U.S. Government securities, mortgage-, and other asset-backed securities. The fund may invest < 35% of net assets in lower-rated debt securities, non-U.S. debt securities denominated in foreign currencies and floating or adjustable rate senior loans.

Lord Abbett Short Duration Income

This top performer short term bond mutual fund was introduced to public in November 1993. Mr. Andreew H. O’Brien has been the fund manager since January 1998. The yield of this fund is 4.25% per year. Its net asset is $13.32 billion. The annual expense ratio of this fund is 0.60%. There is 0.20% 12b1 fee and 2.25% front-end sales load fee. This fund can be purchased from a selection of 100 brokerages with the minimum initial investment of $1,000 for regular brokerage account.

Top World Bond Mutual Funds of 2012

Since its inception, this Lord Abbett fund has performed in 15 years with positive return and 2 years with negative return. The best performance was in 2009 with 16.96%. This Lord Abbett fund has gotten 5-stars rating from Morningstar and it has 2.47% YTD return. This fund is available in many other classes. They are Class C (LDLAX), Class F (LDLFX), Class I (LLDYX), Class R2 (LDLQX) and Class R3 (LDLRX).
The portfolio breakdowns of this fund as of June 2011 are CMBS (30.5%), Investment Grade (30.5%), High Yield Corporate (18.6%), ABS (9.3%), MBS (4.9%), Cash (2.5%), Sovereign (1.7%), Government Related (1.4%) and Other (0.7%).

Disclosure: No Position

Fund Performance - Short, Intermediate, Long Term



updated on July 24,2011


Additional information:

• Full page view: 20 Top Performer Short Term Bond Funds

Fidelity Select Consumer Discretionary Fund (FSCPX)

Sector equity fund invest primarily in specific sector of industry. This mutual fund can be attractive to investor who interested in one to two industry for his/her investment portfolio. It is also considered as non diversified fund. One of this best rated sector fund is Fidelity Select Consumer Discretionary fund. The fund's review is as follow.

Fidelity Select Consumer Discretionary Fund (MUTF: FSCPX)

The Fidelity Select Consumer Discretionary Fund investment seeks capital appreciation. This Fidelity fund typically invests majority of assets (>80%) in common stocks of companies principally engaged in the consumer discretionary products & services manufacture and distribution. This FSCPX fund may invest in domestic and foreign stocks. The fund’s advisor uses fundamental analysis of factors such as the company’s financial condition, industry position, market, and economic conditions to select investments. The fund is considered as non-diversified equity fund.

FSCPX Fund Details

Fidelity Select Consumer Discretionary

• Fund Inception Date: June 29, 1990
• Ticker Symbol: FSCPX
• CUSIP: 316390558
• Beta (3yr): 1.10
• Rank in category (YTD): 81
• Category: Consumer Discretionary
• Distribution: 0.14%
• Capital Gains: N/A
• Number of Years Up: 14 years
• Number of Years Down: 6 years
• Total Net Assets: $226.46 million
• Annual Turnover Rate: 196.0%

updated on July 30th, 2011

T. Rowe Price Media and Telecommunications Fund (PRMTX)

This article will provide T. Rowe Price Media and Telecommunications Fund review. As part of Communication Sector fund, this fund has been rated one of the best sector equity fund. You can find more details about the fund's yield, assets, risk, etc

T. Rowe Price Media and Telecommunications Fund (MUTF: PRMTX)

The T. Rowe Price Media and Telecommunications fund seeks long-term capital growth. This TRP fund generally invests most of net assets (>80%) in the companies’ common stocks engaged in any media and telecommunications sectors such as the Internet, publishing, movies, cable/satellite TV, telephones, cellular services, and technology and equipment. This PRMTX fund typically invests in companies in the large- to mid-capitalization range.

PRMTX Fund Details

T. Rowe Price Media and Telecommunications 

• Fund Inception Date: October 13, 1993
• Ticker Symbol: PRMTX
• CUSIP: 741454102
• Beta (3yr): 1.18
• Rank in category (YTD): 31
• Category: Communications
• Distribution: 0.53%                        
• Capital Gains: N/A
• Number of Years Up: 12 years     
• Number of Years Down: 5 years
• Total Net Assets: $2.15 billion
• Turnover Rate: 41.8%

Updated on July 30th, 2011

American Beacon Retirement Income and Appreciation Fund (AANPX)

When you are in retirement, you would want to invest in mutual fund for income and limited capital appreciation. Several mutual funds may provide this opportunity. Some funds may be good, some may be fine for short term, and some may be worst. One of the best rated retirement income funds will be presented below. The American Beacon Retirement Income and Appreciation Fund is among the best rated retirement income fund and it is featured in U.S.News best mutual funds.

American Beacon Retirement Income and Appreciation Fund (MUTF: AANPX)

The American Beacon Retirement Income and Appreciation fund is trying to seek income and capital appreciation. This American Beacon fund invests majority of total assets (about 75%) in investment grade fixed-income securities. This fund seeks to achieve 3 to 7 years weighted average duration in the bond’s asset. To enhance the fund’s return, this fund will invest the rest of assets (about 25%) in convertibles strategy. This convertible strategy includes convertible and nonconvertible debt obligations such as non-investment-grade, convertible and non-convertible equity securities, common stocks, preferred stocks, and U.S. dollar-denominated American Depositary Receipts, warrants and options.

Note: This fund is previously known as American Beacon Enhanced Income Fund before 2009.

AANPX Fund Details

American Beacon AANPX fund

• Fund Inception Date: July 1, 2003
• Ticker Symbol: AANPX (Investor class)
• CUSIP: 02368A398
• Beta (3yr): 0.36
• Rank in category (YTD): 95
• Category: Retirement Income
• Distribution: 2.55%
• Capital Gains: N/A
• Expense Ratio: 1.08%  
• Net Assets: $154.27 million
• Number of Years Up: 6 years
• Number of Years Down: 1 year
• Annual Turnover Rate: 51%

The fixed income characteristics:

• Average Duration: 4.9 years
• Average Maturity: 6.7 years
• Average Coupon: 4.3%

updated on July 24, 2011