Take the MFS Intermediate High Income Fund, which also plays in the high-yield bond world and is up a whopping 20.3% so far for 2017. In other words, I combine a variety of bottom-up questions about the fund’s portfolio, strategy and management with top-down questions about the asset class and economy as a whole. The System in ActionTo show how this works, let’s look at a recent example: the PIMCO Dynamic Credit and Mortgage Income Fund. At the time, PCI was the most discounted of PIMCO funds. Its income strategy (selling index options, such as calls on the S&P 500, for income) wasn’t enough to cover payouts in our low-volatility environment.

Source: Forbes October 27, 2017 11:15 UTC