Morningstar, Inc. Commentaries
May 9, 2014
Click here to access This Portfolio Beat Its Category by a Comfortable Margin
Since its October launch, the Strategic Income Portfolio--our model portfolio of best ideas for taxable fixed-income closed-end funds--has seen fairly high levels of volatility. Nevertheless, its 5.3% share price total return for the six-month period beat its Morningstar Category, multisector bond, average of 3.6% by a comfortable margin. Despite the volatility, the SIP accomplished this with similar levels of credit risk and a lower level of interest-rate risk compared with the category average.