FYI: The Bloomberg Barclays U.S. Aggregate Index, a proxy for core bond performance, lost 1.5% for the quarter—its first negative quarterly return in over a year—while the intermediate-term bond Morningstar Category was down a more modest 1.3%. Funds with limited exposure to investment-grade credit held up better, as did those with exposure to non-U.S securities, given a weakening dollar and more robust global growth projections. As interest rates continued their ascent, funds with lower duration, a measure of interest-rate risk, also benefited. The positioning of Loomis Sayles Investment Grade Bond (LSIIX) (with a Morningstar Analyst Rating of Gold), with its combination of lower duration, high-yield holdings, and non-U.S. credit and currency exposures, elevated its performance above 95% of unique intermediate-term category peers, as it gained a modest seven basis points for the quarter.
Regards,
Ted
http://www.morningstar.com/articles/857868/a-tempestuous-start-to-the-year-for-fixedincome-ma.html
