JRB Bond Funds
The Joint Retirement Board offers a range of actively and passively managed bond funds. You can choose among funds that specialize in government bonds, corporate bonds or mortgage-backed securities. The JRB also offers a multi-sector bond fund that holds different types of bonds including international and high-yield bonds.
Although bond funds are considered conservative investments, they can, at times, experience declines. To learn more about how bonds work and the risks associated with bond investing, see our article, Introduction to Bonds.
Western Asset Core Bond Fund I (WATFX)
The Western Asset Core Bond I Fund is an actively managed fund designed to serve as the centerpiece of a bond portfolio. It invests in high-quality U.S. government, corporate, agency and mortgage-related bonds. The Fund holds bonds with a variety of maturities. The Bloomberg Barclays U.S. Aggregate Bond Index is used as the benchmark for the Fund.
View JRB Investment Returns Sheet
Western Asset Core Bond Fund I Fact Sheet
Western Asset Core Bond Fund I Prospectus
Vanguard Total Bond Market Index I Fund (VBTIX)
The Vanguard Total Bond Market Index I Fund is a passively managed fund designed to provide broad exposure to U.S. investment-grade bonds as mirrored in the Bloomberg Barclays U.S. Aggregate Float Adjusted Index. The Fund invests in a wide spectrum of public, taxable, fixed-income securities including U.S. Treasuries, international dollar-denominated bonds, corporate bonds and mortgage-backed securities with at least one year to maturity. Because the Fund invests in several segments and maturities of the fixed-income market, investors may consider the fund their core bond holding.
View JRB Investment Returns Sheet
Vanguard Total Bond Market Index I Fund Fact Sheet
Vanguard Total Bond Market Index I Fund Prospectus
Goldman Sachs U.S. Mortgages Fund R6 (GGIUX)
This actively managed fund seeks to generate a high level of total return (income and capital appreciation) by investing in high quality, adjustable rate and fixed rate mortgage loans. The Fund’s benchmark is the Bloomberg Barclays U.S. Securitized Bond Index.
View JRB Investment Returns Sheet
Goldman Sachs U.S. Mortgages Fund R6 Fact Sheet
Goldman Sachs U.S. Mortgages Fund R6 Prospectus
Vanguard Inflation-Protected Securities I Fund (VIPIX)
The Vanguard Inflation-Protected Securities I Fund is an actively managed fund designed to protect investors from the eroding effects of inflation. The Fund invests at least 80% of its assets in Treasury Inflation Protected Securities (TIPS). Fund performance is measured against the Bloomberg Barclays U.S. Treasury Inflation-Linked Bond Index. Investors may wish to consider this fund as a complement to a diversified bond portfolio.
View JRB Investment Returns Sheet
Vanguard Inflation-Protected Securities Fund I Fact Sheet
Vanguard Inflation-Protected Securities I Fund Prospectus
Fidelity Advisor Strategic Income Z Fund (FIWDX)
High current income is the primary objective of the actively managed, multi-sector Fidelity Strategic Income Fund. Capital appreciation is a secondary objective. The Fund seeks to achieve this goal by purchasing lower-quality debt (less than investment grade and often referred to as high yield debt securities or junk bonds). Assets are allocated among four investment categories: high yield securities (approximately 45% of assets), U.S. Government and investment-grade securities (25%), emerging market securities (15%) and foreign developed market securities (15%). Lower-quality bonds can be more volatile and have greater risk of default than higher-quality bonds. In addition, investment in foreign debt increases exposure to foreign currency risk. Because the Fidelity Strategic Income Fund invests in many classes of bonds, its performance is measured using several benchmarks.
View JRB Investment Returns Sheet
Fidelity Advisor Strategic Income Z Fund Fact Sheet
Fidelity Strategic Income Fund Prospectus
Conclusion
Bond funds play an important role in a diversified investment portfolio, balancing riskier investments in corporate stocks. The role of bond funds in your portfolio can vary based on your time horizon, need for investment return and comfort with investment risk. To better understand the role bonds play in your portfolio, contact the JRB at 888-JRB-FREE (572-3733) or send us an email.
December 2022