The Basic Composition of a Diversified Fixed Income Menu
In our view, fine-tuning the fixed income offerings in a DC plan lineup is a relatively simple matter for plan sponsors and should include the following: Cash, Fixed Interest or Stable Value, U.S. Intermediate Term Bonds, High Yield Bonds and World/International Bonds.
Enhancing the Fixed Income Composition
For DC plan sponsors seeking more diversification than the four basic components of fixed income to aim to stabilize a portfolio as fixed income asset classes move in and out of favor, the following are satellite options that may provide higher income potential, but with greater risk and higher volatility: Corporate Bonds, Senior Loans and Emerging Market Debt.
These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.