Blue Chip Bonds
Aberdeen Asia Pacific Fund Symbol: FAX
The Fund is managed by Aberdeen Asset Management Asia Limited and advised by Aberdeen Asset Management Limited. The Fund's shares trade on the NYSE AMEX under the symbol "FAX".
Rationale; In order to achieve its investment objective, the Company may invest up to 80% of its total assets in "Asian debt securities", and may be denominated in an Asian Country currency or in Australian, New Zealand or U.S. dollars. At least 20% of the Company's total assets will be invested in "Australian debt securities. This is a closed end Fund, at a 9% discount, and currently paying dividends of .47 a share per month thru June of this year. Safe international income, at a discount. Long-term hold
Guidance: Long term hold. Pays strong dividend. No stop loss
Treasury Inflation Protected Securities Symbol: TIPS
http://www.treasurydirect.gov/indiv/products/prod_tips_glance.htm
Rationale: Inflation bonds are a great hedge against both inflation, and fear of future inflation. These are CASH alternatives. We currently hold.
Guidance: Buy
Barclays 20+ Year Treasuries Symbol: TLT
http://us.ishares.com/product_info/fund/overview/TLT.htm?c=JAC01&gclid=CLCe94OF9JsCFRJ4xgod_Gxf_w
Proshares Ultra short 20+ Year Treasuries Symbol: TBT
http://www.proshares.com/funds/tbt.html
Rationale: U.S. Treasuries, short and Long: TIPS are inflation protectors. TLT is a long term Treasury, so a deflation protector. TBT plays long-term treasuries short.
We use all three instruments as a large part of our CASH porfolio.
Eaton Vance Senior Floating Rate Trust Symbol: EFR
http://individuals.eatonvance.com/fundinforedesign/fundspecific.asp?Type=closedend&fund=EFR
Rationale: This is a senior secured floating rate bond fund that ranks well for inflation with gold, real estate, and TIPS. This trust is currently trading at a discount, and has a yield of 6.6%
Guidance: We bought on 9/28/09 at 13.15. Strong yield, and a good cash alternative to prices near 15.50.
I Shares Barclays 7-10 year Treasury Bond ETF Symbol: IEF
Rationale: This ladders our portfolio now completely, with money in early October 2009 now moving to shorter-term treasuries
Guidance: Adding to our overall Treasury portfolio we replace shorter term Treasuries, and sell longer term TLT as the market shifts, keeping a base in Inflation Bonds, TIPS and now EFR.
