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BJBGX Is a Mutual Fund With International Flavor

Artio Total Return Bond is cheap but produces lesser results


The Artio Total Return Bond (MUTF:BJBGX) is an IRA fund that seeks predictable returns by investing in securities issued by governments, supranational entities and corporations in developed and emerging markets. The fund also invests in derivatives and forward contracts to help it hedge against losses that may result from the price volatility inherent in investing in bond funds that do not have maturity dates.

Here are the specifics for the Artio Total Return Bond fund for today’s mutual fund spotlight:

Investing Strategy: Almost 89% of the fund’s assets are in bonds. Most of the remaining assets are in cash.

Expense Ratio: With a 0.69 expense ratio and no transaction fee, the fund is cheap and has a Morningstar Rating of four stars.

Top 5 Holdings: The top stocks in the Artio Total Return Bond fund include Mexico bonds (10% yield) at 5.54%, Federal National Mortgage Association at 2.89%, Poland Government Bonds 10/15 (6.25% yield) at 2.29%, Royal Bank Of Canada 144a (3.125% yield) at 1.49%, and U.S. Treasury Note (2% yield) at 1.22%

Returns: The Artio Total Return Bond fund lost about 1% over the past 12 months, compared with the broader market’s return of about 24% over the same period. Its five-year return of 8% underperformed the Dow Jones Industrial Average’s approximately 17% return, but beat the S&P 500’s 7% return over the period.

Other Fund Statistics

  • Total Assets: $1.39 billion (as of 7/15/11)
  • Minimum Investment: $1,000 ($100 IRA)
  • Fund manager: Richard Pell and Donald Quigley
  • Manager’s Tenure: Since July 1998 and August 2010, respectively

Article printed from InvestorPlace Media,

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