The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Gross and Fuss Eat Vanguard's Dust Not Rated 5.0 Email Routing List Email & Route  Print Print
Friday, November 25, 2011

Gross and Fuss Eat Vanguard's Dust

News summary by MFWire's editors

The Wall Street Journal has some bad news for Pimco [see profile] and Loomis Sayles [see profile]. Last week Min Zeng reported that the $13.4-billion Vanguard Intermediate-Term Bond Index Fund (VBIIX) [see profile] is beating all 177 other intermediate bond funds tracked by Lipper. The index fund's 9.77 percent year-to-date performance leaves Bill Gross' $244.3-billion Pimco Total Return Fund (PTTRX, with 2.91 percent) and Dan Fuss' $19.8-billion Loomis Sayles Bond Fund (LSBDX, with 3.79 percent) in the dust.

Yet, the WSJ notes that both the Loomis and Pimco funds benchmark against a different index: the Barclays Capital U.S. Aggregate Bond Index. That index returned 6.95 percent year-to-date, also beating both star PMs, while the Vanguard fund tracks the Barclays Capital U.S. 5-10 Year Government/Credit Float Adjusted Index.

And over the long run, Fuss and Gross still beat out the Vanguard fund: over the past 15 years, the Loomis Sayles fund returned 8.5 percent, the Pimco fund returned 7.15 percent and the Vanguard fund returned 6.85 percent.

A low expense ratio of 22 basis points, versus 46 bps for Pimco Total Return and 64 bps for Loomis Sayles Bond, helped the index fund beat the field this year. Asset allocation also helped. Vanguard Intermediate-Term Bond Index allocates 52 percent of its assets to Treasuries currently, compared to 19 percent for Pimco Total Return. Treasuries have returned 8.87 percent year-to-date.

Joshua Barrickman, who PMs Vanguard Intermediate-Term Bond Index, also credited the fund's success to its longer average duration, 6.2 years, compared to 4.4 for the Pimco fund and 5.67 for the Loomis Sayles one.

Morningstar research vice president John Rekenthaler and Lipper senior research analyst Jeff Tjornehoj both weighed in for the article. 

Edited by: Neil Anderson, Managing Editor

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2022: Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

  1. 2022 ICI Leadership Summit, May 25-26
  2. ALFI Roadshow to New York, May 25
  3. 2022 IDC Fund Directors Workshop, May 26
  4. Irish Funds Annual Global Funds Conference 2022, May 30-31
  5. WealthManagement Edge, May 31 - June 3
  6. MFDF 2022 Fund Governance and Regulatory Insights Conference, Jun 8-9
  7. 28th annual Expect Miracles East Coast Classic, June 9
  8. 2022 Sohn Investment Conference, June 9
  9. IDC webinar - Cybersecurity for Fund Boards: The Current Landscape, June 9
  10. MMI webinar - Driving Business Value with Artificial Intelligence & Data, June 15
  11. MFDF webinar - Key Takeaways From Morningstar's 2021 Annual Fund Fee Study, June 16
  12. MFDF Director Discussion Series - Open Forum (Chicago), June 21
  13. 2022 MMI Emerging Asset Managers Forum, June 23
  14. MFDF In Focus: Capitol Hill, A Conversation with Congressman Bryan Steil, June 28
  15. Financial Planning INVEST, Jun 28-29
  16. MFDF webinar - Differentiating Mutual-Fund-to-ETF Conversions, July 19
  17. MFDF Director Discussion Series - Open Forum (New York), July 20
  18. 2022 MMI Distribution Leadership Forum, Jul 20-21
  19. MFDF webinar - Fund Boards' Oversight of Investment Performance, July 28
  20. MFDF webinar - Performance, Perception and Manager Selection, September 14
  21. 2022 ICI Tax and Accounting Conference, Sep 18-21
  22. 5th annual Expect Miracles Atlantic Coast Classic, October 3
  23. Nicsa Fearless Leadership Symposium, Oct 6-7
  24. 2022 MMI Annual Conference, Oct 19-21
  25. 2022 IDC Fund Directors Conference, Oct 24-26
  26. 18th annual Expect Miracles Wine & Spirits Event, October 27

©All rights reserved to InvestmentWires, Inc. 1997-2022
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use