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As for bonds, he would throw out Treasury issues and emphasize corporate high-yield instruments.
When the Treasury issues TIPS, it does two things at the same time.
Traditional Treasury issues are not guaranteed to keep up with inflation.
By comparison, 10-year Treasury issues yielded 5.05percentt on Friday.
Treasury issues gained, reflecting an investor move into the safety of government bonds.
The fund also has "lots of cash" and Treasury issues, Mr. Tice said.
Mr. Fuss recommends avoiding Treasury issues and focusing instead on corporate debt, either investment grade or high yield.
In the bond market, Treasury issues slipped Friday after rallying on Thursday in response to European debt worries.
Priced at par, the shorter-term bonds yield two-tenths percentage point more than comparable Treasury issues, and the two longer maturities yield three-tenths percentage point more than Treasury issues.
For example, Mr. Meyer and his team might capitalize on the price difference between new Treasury issues and older ones.
Treasury issues, he said, still offer yields 2 to 3 percentage points greater than those of Japanese government bonds.
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