Fixed income funds retreated 0.56% on average for Q1 2018, a dip of 1 percentage point from their positive 0.46% return for Q4 2017. While all five of Lipper’s fund macro-groups had posted gains for Q4, only World Income Funds (+0.99%) did so this past quarter. At the peer group level only 10 of Lipper’s 47 peer groups had positive returns for Q1, compared to 36 for Q4. Multiple factors contributed to weighing down bond fund prices in Q1, led by the current interest-rate environment, stronger inflation data, and rising bond yields.
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