5 Mutual Fund Safe Havens for Summer

These five funds perform, even when the going gets tough

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5 Mutual Fund Safe Havens for Summer

FPA New Income Fund

FPA185 5 Mutual Fund Safe Havens for SummerThe FPA New Income Fund (MUTF:FPNIX) has been in existence since 1969 and managed by FPA Funds since July 1984.

For those who aren’t familiar with FPA, it’s one of the most respected money management firms in the country. The fund’s annualized total return since inception is 7.97% — 26 basis points less than the Barclays US Aggregate Bond Index.

FPA’s philosophy, however, is to not lose money.

For instance, consider the ugly four-month period from April 30, 2011, to Sept. 30. For those of you that don’t remember — it wasn’t good. In those four months, the Vanguard 500 Index Fund (MUTF:VFINX) achieved a total return of -16.3% including dividends. In comparison, FPA’s fund actually gained 0.88%.

Approximately 86% of FPNIX’s $5 billion in total net assets are invested in mortgage-backed securities with credit quality ratings of “A” or better. The average life of its 399 holdings is 2.6 years, making it a reasonably short-term investment. And FPA New Income’s 2.56% SEC 30-day yield makes it a great place to park your money.


Article printed from InvestorPlace Media, http://investorplace.com/2013/05/5-mutual-fund-safe-havens-for-summer/.

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