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Top Convertible Fixed Income Funds
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ShareToday we are featuring top-performing “Convertible" fixed income mutual funds, which primarily invest in convertible securities in search of growth and/or income because convertible securities provide protection against market fluctuations, while providing a steady income stream. However, these securities are often rather expensive and difficult for the average and beginning investor to purchase. Mutual funds, however, offer easier access to these instruments since they require lower minimum investments.
Investors can find such fixed income funds by checking out the entire list of the Zacks #1 Rank Convertible Fixed Income Funds.
3 Great Convertible Choices
Putnam Convertible Income-Growth A (PCONX) seeks both current income and capital appreciation, with growth of capital as a secondary objective. It was incepted in June 1972.
This fixed income fund invests mainly in convertible securities of large and mid-sized companies. A large share of the funds assets, at least 80%, is held in equity securities. In addition, a significant portion of the convertible securities purchased by the fund are below investment-grade.
The fixed income fund has an expense ratio of 1.06% against a category average of 1.42%. As of October 2009, it has a portfolio turnover of 74% against a category average of 83%. The fund's top holdings include Bank Of America Corp, Freeport-Mcmoran Copper & Gold Inc and Safeguard Scientifics Inc. For the fiscal year ended October 31, 2009, this Convertible fund outperformed the average return for its Lipper peer group, Convertible Securities Funds.
Robert L. Salvin has been lead manager of this income fund since December 2005. Salvin joined Putnam in 2000 and is a Managing Director and Portfolio Manager on the Core Fixed Income High Yield team.
Franklin Convertible Securities A (FISCX) was incepted in April 1987. This fixed income fund seeks to maximize total return by maximizing capital growth and current income under varying market conditions.
A majority of the fund’s assets, at least 80%, are invested in convertible securities. It may not invest more than 10% of assets in securities rated below B or in unrated securities of comparable quality.
The fixed income fund has an expense ratio of 0.91% against a category average of 1.42%. As of October 2009, it has a portfolio turnover of 47% against a category average of 83%. The fund's top holdings include WESCO International Inc, Mylan Inc, and Microchip Technology Inc. As of April 2009, the fund had outperformed its benchmark, the Merrill Lynch (ML) All U.S. Convertibles Index, for the six-month period.
Alan Muschott has been lead manager of the fund since July 2002. Muschott is a Chartered Financial Analyst and is a vice president of Franklin Advisers, Inc.
Calamos Convertible Fund A (CCVIX) seeks to provide current income, with growth as its secondary objective. It was incepted in June 1985.
The fixed income fund invests its assets in a well-diversified portfolio of domestic and foreign securities. The fund seeks to increase returns while minimizing risk by diversifying across issuers and sectors and relying on in-house research rather than published data for the purpose of selecting suitable securities.
The icome fund has an expense ratio of 1.15% against a category average of 1.42%. As of October 2009, it has a portfolio turnover of 45% against a category average of 83%. The fund's top holdings include EMC Corp, Teva Pharmaceutical Industries Ltd, and Freeport-Mcmoran Copper & Gold Inc. The fund has consistently outperformed the S&P 500 Index over a 10-year period.
John P. Calamos, Sr. has been lead manager of the fund since June 1985. Calamos is recognized as a pioneer in risk management and is the founder of Calamos Asset Management.
Discover Many More Funds
Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.
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.
Read the full analyst report on PCONX
Read the full analyst report on FISCX
Read the full analyst report on CCVIX
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| Market Summary | May 26, 2012 02:56 am ET |
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