L2 BARRON’S•Funds Quarterly April 6, 2020
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Fund Quarterly
ETFS, CLOSED-END, AND MUTUAL FUNDSFund Quarterly Issue|Q1APRIL 6, 2020Finding 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 Furmanled 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