Fixed income funds realized a return of negative 4.71% on average during the first quarter of 2022, marking the second negative quarterly performance over the last three quarters and their worst-performing quarter in more than 30 years. Taxable bond funds (-4.37%) outperformed tax-exempt bond funds (-5.67%) in quarterly performance for the sixth quarter in the last eight.
All 51 Lipper fixed income classifications ended the quarter with sub-zero quarterly performance, which is up from 23 last quarter. Only three Lipper classifications finished the quarter depreciating less than 1.0%.
Summary:
- Government/Treasury funds posted a negative 3.71% return on average over the quarter, marking their worst-performing quarter in more than 30 years.
- Our top three Lipper classifications over the quarter were Loan Participation Funds (-0.51%), Ultra-Short Obligations Funds (-0.69%), and Specialty Fixed Income Funds (-0.98%).
- The worst-performing classifications on average were Emerging Markets Hard Currency Debt Funds (-8.46%), General U.S. Treasury Funds (-7.99%), and Corporate Debt Funds BBB-Rated (-7.08%).
- World fixed income funds struggled yet again in Q1 2022. Their negative 6.28% performance was the second-lowest among all macro-groups and the second-lowest quarterly return in the past 30 years, falling behind Q1 2020 (-10.77%).
Click here or the Download Full Report link in the upper right-hand column of this page to download the First Quarter 2022 FundMarket Insight Report: Fixed Income Funds Post Worst Performing Quarter in Over Three Decades—Longer Duration Funds Suffer Most.
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