Top Convertible Fixed Income Funds

Today we are featuring top-performing “Convertible" fixed income mutual funds, which primarily invest in convertible securities in search of growth and/or income.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Convertible Fixed Income Funds.

3 Solid Picks

Davis Appreciation & Income A (RPFCX) was incepted in May 1992. The investment seeks total return through a combination of growth and income.

The fund primarily invests at least 80% of its net assets in convertible securities mainly bonds and preferred stocks. The fund may use up to 35% of its net assets to buy debt securities with low ratings.

Share holders have to make a minimum initial investment of $1,000 to enter this Zacks#1 Rank (“Strong Buy”) fund. The fund offers dividends quarterly and capital gains annually.

Andrew A. Davis has been lead manager at the fund since February 1993. Davis has over fifteen years of investment management experience and was previously employed at PaineWebber, Inc. as Vice President.

Franklin Convertible Securities A (FISCX) seeks to maximize total return by optimizing capital appreciation and high current income. It was incepted in April 1987 The fund primarily invests in 80% of its assets in convertible securities, which generally are bonds or preferred stocks that may be converted within a specified period of time into a set amount of common stock at a prestated price.

The fund has an expense ratio of 0.99%. The fund offers dividends quarterly and capital gains, if any, annually.

Alan Muschott has been lead manager at the fund since July 2002. Muschott is a Chartered Financial Analyst and has been with the firm since 1998.

PIMCO Convertible Bond Inst (PFCIX) seeks to maximize total return. It was incepted in March 1999.

The fund normally invests at least 80% of its assets in convertible securities, which are issued by companies of all sizes and market capitalizations. These include corporate bonds, debentures, notes or preferred stocks and their hybrids that can be converted into (exchanged for) common stock or other securities, such as warrants or options.

The fund has an expense ratio of 0.66%. It declares and distributes dividends, if any, annually.

William H Gross has been lead manager of the fund since May 2009. He has been recognized as an influential authority on the US bond market in a survey by Pensions and Investments Magazine conducted in 1993.

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By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.