Per last statement of holdings (now a bit stale) the weighted average duration is 2.14 years.
43% USD denominated holdings, well diversified across many countries while avoiding Japan and some of the other problem children... good long term returns ... and yet
GIM is down 1.8% today and is now trading at almost a 5% discount to NAV.
What's so scary about GIM at current price that I am missing?
GIM's chart correlates perfectly w/ TLT, i.e., unless the 10 yr bond goes back to 2% GIM is not likely to rise to the $9/sh level. Even with new inflationist #$%$ replacing old inflationist #$%$ at the Fed that's unlikely to happen.
I read your post and thought why in *%&**&% would GIM with its relatively short maturity track the TLT which is a 20 year instrument ... but you are right on that ... I tried plotting against the THT (10 year) which I thought "should be" a closer match but ... nope ...
That strike me as somewhat odd................ :-/
Good question. It's yielding 5% too. Maybe the divvy will have to be reduced if the interest earned drops as a result of the fund shortening duration. It's hard to find quality bonds to buy that yield 5%, so if they are sticking to quality and short maturities, maybe Mr. Market thinks the dividend will have to be reduced. Otherwise, I'm scratching my head also. I am encouraged that the NAV is not dropping, actually coming up a bit. That's what I really watch, if it were to start dropping, I'd be concerned. I think eventually GIM will trend up to par. Here's hoping.