PIMCO Foreign Bond USD Hedged

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Beat The Street
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PIMCO Foreign Bond USD Hedged

Post by Beat The Street »

What do you guys use for International Bond exposure? From what I can find there are no passive funds that hedge against currency risk. PIMCO has an international bond fund that does but it is an active fund. Does anyone use this? Any thoughts about this fund? Thanks for your replies.
“Never ask anyone for their opinion, forecast, or recommendation. Just ask them what they have—or don’t have—in their portfolio.” -Taleb
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abuss368
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Re: PIMCO Foreign Bond USD Hedged

Post by abuss368 »

Beat The Street wrote:What do you guys use for International Bond exposure? From what I can find there are no passive funds that hedge against currency risk. PIMCO has an international bond fund that does but it is an active fund. Does anyone use this? Any thoughts about this fund? Thanks for your replies.
Read Unconventional Success by David Swensen on why this asset class should be avoided.
John C. Bogle: “Simplicity is the master key to financial success."
BYUvol
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Re: PIMCO Foreign Bond USD Hedged

Post by BYUvol »

Beat The Street wrote:What do you guys use for International Bond exposure? From what I can find there are no passive funds that hedge against currency risk. PIMCO has an international bond fund that does but it is an active fund. Does anyone use this? Any thoughts about this fund? Thanks for your replies.
I use FGBRX (Templeton Global Bond R) for the sole reason that it is the cheapest bond fund available in my 401k. I know Swensen, who I greatly respect, shuns international bond, but costs matter and the next closest bond fund is .5 er higher.

If I had access to a bond fund that tracks Barclay's aggregate bond index at a reasonable cost, I would use that instead.
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CyberBob
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Re: PIMCO Foreign Bond USD Hedged

Post by CyberBob »

Vanguard is supposed to have a hedged international bond index fund out by the end of this year. I'd just wait for that one.
Vanguard to offer international bond index funds.

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Beat The Street
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Re: PIMCO Foreign Bond USD Hedged

Post by Beat The Street »

I suppose international bond exposure isn't necessary, hasn't Vanguard delayed this multiple times?
“Never ask anyone for their opinion, forecast, or recommendation. Just ask them what they have—or don’t have—in their portfolio.” -Taleb
Easy Rhino
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Re: PIMCO Foreign Bond USD Hedged

Post by Easy Rhino »

I still don't see the point of hedged international bond holdings. If I want the diversification of international bonds, I also want the diversification of the different currencies.
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