Merit's Multi-Sector Bond Strategy.
We began offering this service in September of 2010, After extensive research, we discovered that the day-to-day price changes in multi-sector bond funds are very similar to those we see in high yields. This is apparently due to the fact that the typical multi-sector bond fund keeps 25 to 40 % of its portfolio invested in high yield bonds at any given time. We back tested our high yield model on several multi-sector bond funds, going back 14 years to the time when this type of bond fund was first introduced. We found that our model works as well on multi-sectors as it does on high yields. We also found that it can be expected to generate 4 to 5 round turns (a Buy and a Sell) a year, just as it does for high yields. We see multi-sector bond investing as a significant addition to our fixed-income services. As you will see in the MoniResearch report, it could possibly outperform our high yield service over time, depending on the funds selected for investment. To see the performance reports on this strategy click here or go the Performance section of our website. We need to point out that the returns from our multi-sector bond strategy are not bank guaranteed, not FDIC insured and may lose money. Before you invest in any fund, obtain a prospectus and study it carefully. For important information about back-testing, please click here.
Performance of Merit's Multi-Sector Bond Strategy