Investing November 6, 2002
Bond Funds Lower In October
November 6, 2002 (PLANSPONSOR.com) - Bond funds
showed negative returns in October, according to mutual fund
research firm Lipper, Inc.
Reported by Eric Hazard
October saw the average US taxable bond fund return -0.16%. However, for the year returns are still positive up 2.77%. Other bond funds gave back in October as well:
- General US Treasury Funds -1.70%
- High yield funds -0.54%
- Corporate Debt A Rated Funds -0.89%
October was not all bad, as some bond funds still posted gains:
- Ultra short obligation funds +0.10%
- Short US Treasury funds +0.08%
- Short US Government funds +0.15%
Additionally, US Mortgage funds were up 0.18% in October and 7.17% for the year. GNMA funds also showed gains, returning 0.13% in October and 7.24% for year.
The average diversified stock fund posted a 5.85% return in October, but has returned -22.50% for the year.
Bond fund results come on the heels of today’s Federal Reserve announcement to cut the discount rate 0.50% to 1.25%.