With high volatility and deleveraging expected to continue in the global markets, Litman/Gregory Asset Management is betting on two popular fixed-income funds—PIMCO’s Total Return and DoubleLine’s Total Return—for its clients’ managed portfolios.
Clearly, active management by star managers gets the thumbs-up in Orinda, Calf.-based Litman/Gregory’s playbook. Bill Gross is responsible for PIMCO’s Total Return Fund (PTTRX), which grew to a record $258.7 billion in April, while Jeffrey Gundlach’s $23.7 billion DoubleLine Total Return Bond Fund (DBLTX), attracted more money in February than any other U.S. mutual fund.
“Our fixed-income portfolios have less interest rate sensitivity, or lower durations, relative to the benchmark, and higher yields than traditional core bond portfolios,” said Alice Lowenstein, a certified financial planner and director of managed portfolios for Litman/Gregory Asset Management on Friday at the 2012 National Association of Personal Financial Advisors (NAPFA) annual conference in Chicago.
Lowenstein is responsible for institutional client relationships and business development for managed portfolio clients at Litman/Gregory, whose AdvisorIntelligence research unit helps advisors with model portfolios, tactical allocation changes and practice management advice.