Based on data from August 3 , 2010
We continue to benefit from a diverse portfolio of fixed income funds and ETFs including exposure to short and intermediate term bond funds, mostly consisting of high quality corporate bonds, as well as some exposure to high yield corporate bond funds. Last month, we increased exposure to strategic, or multi-sector bond funds, whose managers have the flexibility to adjust to a dynamic environment. Strong performance from these “go-anywhere” managers has driven them up in our scoring system. This added to our performance in an environment that was otherwise flat for the benchmark aggregate bond index.
We have moderately increased our portfolio duration since our last report, selling some shorter-term funds and increasing our current yield. We have also added to US dollar-hedged foreign bond fund.
