July 7, 2021

Fixed Income Funds Report Q2 Gains, Tax-Exempt and Non-Domestic Funds Lead the Charge

by Jack Fischer.


Fixed income funds posted a return of positive 1.77% on average during the second quarter of 2021. Both taxable bond funds and tax-exempt bond funds reported positive performance (+1.79% and +1.73%, respectively), marking a nice bounce-back quarter after logging a negative performance in Q1. Taxable bond funds and tax-exempt bond funds have four positive performing quarters in their last five.

In Q1 2021, only 14 out of 51 Refinitiv Lipper fixed income peer groups recorded quarterly gains. In Q2, 49 of the 51 classifications reported positive quarter-over-quarter gains.

Second Quarter Highlights:

  • On average, fixed income funds returned +1.77% over the second quarter.
  • The top three performing Lipper classifications for Q2 2021 were General U.S. Treasury Funds (+3.93%), High Yield Municipal Debt Funds (+3.42%), and Emerging Markets Hard Currency Debt Funds (+3.40%).
  • Lipper Global High Yield Funds classification (+2.64%) has logged five consecutive quarters of positive performance.
  • Of the 51 fixed income Lipper Classifications, only GNMA Funds (-0.20%) and Short U.S. Government Funds (-0.15%) recorded negative quarterly performance.
  • World Fixed Income Funds (+2.36%) outperformed all other fixed income macro-groups over Q2—bouncing back from a 3.21% loss in Q1.

Click here or the Download Full Report link in the upper right-hand column of this page to download the Second Quarter 2021 FundMarket Insight Report: Fixed Income Funds Report Q2 Gains, Tax-Exempt and Non-Domestic Funds Lead the Charge.

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