Lightened up on BEGBX

This afternoon we sold half our remaining investment in the American Century International Bond Fund (BEGBX).  We have owned this fund since March 2007 and have now sold most.  The rate of return on the investment is 3.6% to date.  Here's a two year chart of BEGBX and BND. 



There are several reasons for the sale.  The volatility is high compared to BND and even greater on a 20 year chart.  Changes in currency valuations raise BEGBX's volatility.  Same with EMB, but withEMB you've been rewarded for the risk taken.  Also, the BEGBX bond portfolio is heavily Eurocentric.  With all the chatter about the sovereign debt issues in Europe, I'll take a pass for now.  Lastly, BEGBX is trailing it's benchmark index.

Given all the negative comments, why not sell all of BEGBX?  Simple.  As of now, I haven't identified a  developed market, hard asset/sound currency, bond ETF.  In concert with the theme of our approach, I have visions of a portfolio with bonds from the likes of Canada, Australia, Singapore, South Korea, and Switzerland.