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Mutual Fund Q&A: 
Enhancing Index Returns
Author: Ticker Magazine
123jump.com
Last Update: 10:25 AM EDT August 03 2007


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Asha Joshi
  “Our strategy will not underperform significantly but it’s not going to outperform significantly either. And the main driver of the return remains the stocks in the S&P index despite the fact that bonds provide the alpha portion of the total return.”
Payden Market Return Fund

Index funds have been praised for providing low-cost exposure and have gained popularity due to the dismal performance of actively managed funds. The Payden Market Return Fund is neither of the above as it falls right in the middle. It aims for the return of the S&P 500 plus alpha, but with low volatility and tracking error. The interesting strategy of this fund is that it includes futures and bonds, although it remains an equity fund.

 

 

 

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