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Article: Dearth of supply requires some creative solutions from fund managers.(mutual funds)
- Article from:
- The Bond Buyer
- Article date:
- October 28, 1997
- Author:
CopyrightCOPYRIGHT 1997 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Lack of supply has been a major obstacle for managers of Minnesota municipal bond funds during the second half of the year. Faced with paltry supply and low short-term interest rates, fund managers say they've had to conjure up creative ways to boost performance.
For example, the $9.5 million Minnesota portfolio of Lord, Abbett & Co. has emphasized structure over sectors.
"A better vehicle is structure," said Phil Fang, manager of the Minnesota portfolio. "We are thinking what is the cheapest structure, versus what our views on rates are."
Lord Abbett's Minnesota funds ranked third in yield at 5.47% for the year ending Sept. 30, versus the 4.79% average ...