October 5, 2017

World Income Funds Lead the Gains in the Fixed Income Sector

by Patrick Keon


Fixed income funds continued to prosper in Q3 2017, with the group posting a positive return of 1.11% on average. This solid performance was uniform across the fixed income asset classes; all five fund macro-groups were in the black for the quarter, paced by World Income Funds (+2.32%). The positive performance was so consistent that, of 47 Thomson Reuters Lipper fixed income peer groups, only two did not record a gain for Q3.

Third Quarter Highlights:

  • World Income Funds (+2.32%) outperformed all other macro-groups, led by Emerging Markets Local Currency Debt Funds (+3.27%).
  • General Domestic Taxable Fixed Income Funds gained 1.34% as riskier assets continued to reap the benefits of narrowing credit spreads.
  • Municipal debt funds appreciated 0.85% on average, paced by High Yield Muni Debt Funds (+1.61%) and New Jersey Muni Debt Funds (+1.10%).
  • Investment-grade corporate debt funds returned 0.75%, driven by the Corporate Debt Funds BBB-Rated (+1.25%) and Corporate Debt Funds A-Rated (+0.98%) peer groups.
  • Government/Treasury funds returned 0.55% as the yield curve flattened for a third straight quarter.

Click here or the Download Full Report link in the upper right hand column of this page to download the Third Quarter 2017 FundMarket Insight Report: World Income Funds Lead the Gains in the Fixed Income Sector.

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