According to data from Lipper Inc, the average taxable US bond fund, gained 0.34% in May, significantly lower than the previous month’s 1.1% return.
With roughly $2.47 trillion in combined assets, the funds boast year-to-date returns of 1.71%, while in comparison the average diversified US stock fund fell 1.92% in May and is down 5.05% so far this year
High-yield fixed income funds were stung when energy company Dynegy, Inc was accused of using phony deals or “round-trip” trades to pump up volume and revenue and cable operator Adelphia Communications had its high yield bonds downgraded another notch by Moody’s Investor Service.
Over the month high-yield funds lost 0.82% after two
consecutive positive months. Still, with year-to-date
returns of 7.17% they rank among the 2002’s top performers.
Intermediate US Treasury funds gained 1.25% in May, bringing year-to-date returns to 4.37%.
In emerging markets debt, funds fell by 0.89% as
contagion from market turbulence in Brazil affected other