Barron\'s - April 6 2020

(Joyce) #1

L2 BARRON’S•Funds Quarterly April 6, 2020


%


Fund Quarterly


ETFS, CLOSED-END, AND MUTUAL FUNDS

Fund Quarterly Issue|Q1

APRIL 6, 2020

Finding a Way Out
It’s been quite a month—and the worst is yet to come. But there are somestrategies investors can use to navigate a tough market.

TimetoGoActive?


DarenFonda

Active fund managers have had

a rough time. But these funds are

more likely to shine...........L4

Gut-Check


For Bonds


SarahMax

Reassessing the role that bonds

play as portfolio ballast.......L 8

The Price


Isn’t Right


LewisBraham

Volatility reveals discrepancies

between bond funds and ETFs.

Which is correct?............L 11

Fortress-Like Funds


ReshmaKapadia

How five veteran fund managers

are weathering the crisis ....L 12

Puttothe


Stress Test


LewisBraham

Investors can now see just how

vulnerable their funds are.. .L14

HowtoReadOurListings......15

Barron’s/LipperTables


StockFunds ..................15

TaxableBonds ................33

MunicipalBonds .............38

ETFs .........................41

Closed-Ends ..................54

Troubling Times Call for


A More Conservative Approach


The future has always been uncertain, but these days it’s certainly more alarming.

But there are strategies that investors can employ to minimize the havoc.

Matt Furman

led the question, “Why should any-


one own bonds anymore?” Yields


were low, and the outlook for total


return weak. Now, with short-term


Treasuries flirting with negative


yields, and virtually all non-Trea-


sury bond-fund categories racking


up big losses, she explains what


investors can expect from this new


“new normal”—and how to think


about their bond portfolios. See


“What to Do With Your Bond


Portfolio Now,” on L8.


And Lewis Braham has once


again delved into the more arcane


aspects of portfolio management,


making them relevant—and


interesting—to investors. He exam-


ines on L11 the important discrep-


ancies between how bond mutual


funds and exchange-traded funds


are priced and, on L14, a new way to


stress-test your portfolio.


The only control we have is in


how we respond to these out-of-


control times. If you need to sob—


sob. If rethinking your portfolio


seems meaningful right now, I hope


you find this section helpful. Me? I’m


going to have a big bowl of ice cream.


Be well and stay safe, everyone.


By Beverly


Goodman


T


he news is bad. More


than one million people


worldwide now have


Covid-19. The U.S. has


more than 250,000


cases, and more than a


quarter of those are in


New York City (where Barron’s is


based). People are worried about


the health of family and friends;


they’re worried about their jobs;


they’re wondering how they’ll


home-school their kids another few


months. And, of course, most of us


are worried about our finances.


The Barron’s team has been


working hard to produce the news


and analysis that our readers need—


on the economy, the markets, and


how to make sense of it all in your


own financial lives. These are


clearly uncertain times, beset by


unprecedented events. But in these


pages, we are doing our part by


doing what we do best—helping


people manage their money.


Turbulent markets are supposed


to have a silver lining for stock-


pickers: When stocks fall, bargains


emerge, and as stocks move more


erratically (ratherthan in lockstep),


it should be easier to find the ones


that offer the most opportunity


(even if that means simply falling


the least in the short term). Unfor-


tunately, most actively managed


funds have disappointed. Daren


Fonda took a look at historical per-


formance data, and how active


funds have behaved since the mar-


ket peaked on Feb. 19, to figure out


where active managers actually


earned their pay. His suggestions


include funds that historically have


fallen much less than their coun-


terparts; funds that take environ-


mental, social, and governance fac-


tors into account; and even small-


company China funds. His story,


“Time to Go Active? Depends On


Where,” is on page L4.


Reshma Kapadia, meanwhile,


zeroed in on funds that own the


companies most likely to ride out the


current environment—in other


words, those with lots of cash, little


debt, and wide economic moats. Her


story, “The 5 Best Mutual Funds to


Get Through the Coronavirus Cri-


sis,” includes some standout, proven


managers. That’s on page L12.


A few years ago, Sarah Max tack-


EDITOR Beverly Goodman
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