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“For fixed income funds, we’re seeing a little better returns … sometimes because they are at a discount, anywhere from 3% to 10% of NAV,” said certified financial planner Robert Finley, principal at Virtue Asset Management in Chicago.
“From our point of view, that provides some protection in a rising-rate environment,” Finley said.
As for yields, it depends on the underlying assets. For instance, for those invested primarily in federally backed mortgages, the yields are roughly 3% to 5%, Finley said. For those that invest in certain corporate debt with variable rates, yields are 5% to 7%, he said.
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