BlackRock Strategic Income Opps Inv A
While referring to presidential candidate Donald Trump, Jeffrey Gundlach commented that “Trump is the unconstrained bond fund of the political arena.”
The prime reason for the increasing popularity of unrestricted bond funds is the low interest rate environment.
Legendary bond investor Bill Gross left Pacific Investment Management Co. (or PIMCO) in September, causing investors to exit en masse from PIMCO-sponsored funds. Total outflows for all of PIMCO’s funds were estimated at $23.5 billion in September.
There are a number of options available to those interested in investing in these funds. We’ll look at the key fund characteristics of the more prominent players. But investors are advised to read the respective fund prospectuses for more details.
Unconstrained bond funds can invest anywhere in the world. They can have simultaneous positions in both high-yield and investment-grade bonds, government and corporate, or fixed and floating rate bonds.
Investor interest in these funds is strong. Unconstrained bond funds offer options for managing fixed income risks, without being shackled by index constraints.