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Having trouble finding a Diversified Bonds fund? Morgan Stanley Global Fixed Income Opportunity A (DINAX) is a potential starting point. DINAX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Diversified Bonds funds is an area filled with options, such as DINAX. Investors looking for exposure to a variety of fixed income types that stretch across issuers, maturities, and credit levels will find a good fit with Diversified Bonds funds. Typically, these funds have a solid amount of exposure to government debt, as well as modest holdings in the corporate bond market.
History of Fund/Manager
DINAX finds itself in the MorgStanley family, based out of New York, NY. Since Morgan Stanley Global Fixed Income Opportunity A made its debut in August of 1997, DINAX has garnered more than $81.60 million in assets. The fund's current manager is a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 2.98%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 5.05%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. DINAX's standard deviation over the past three years is 2.2% compared to the category average of 7.7%. The standard deviation of the fund over the past 5 years is 2.81% compared to the category average of 8.04%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a given bond's interest rate sensitivity, and is a metric that's a good way to judge how fixed income securities will respond in a shifting rate environment.
If you believe interest rates will rise, this is an important factor to look at. DINAX has a modified duration of 2.66, which suggests that the fund will decline 2.66% for every hundred-basis-point increase in interest rates.
Income
Since income is, of course, a big reason for purchasing a fixed income security, it is always important to consider the fund's average coupon. A fund's average coupon is simply its average payout in a given year. For example, this fund's average coupon of 4.06% means that a $10,000 investment should result in a yearly payout of $406.