Managers’ Special Report: Buys & Sells – Flexible Income Funds

Based on data from April 1, 2010

We made no changes to our Flexible Income portfolios this month. Our Flexible Income portfolios have enjoyed a good run over the past 12-months and year-to-date, beating the benchmark aggregate bond index handily and earning much higher total returns than one might assume given the current very low yields offered by traditional fixed income. We’ve also enjoyed remarkable stability despite recent volatility in traditional bonds and bond interest rates.

Our Flexible Income portfolios remain broadly diversified and maintain a lower average duration than the benchmark. Please see last month’s post (below) for more details about our flexible income holdings.

Summary: Our flexible income portfolios remain broadly diversified and maintain a lower average duration than the benchmark. We had no Upgrades this month in our flexible income portfolios.