Following an impressive 2016, riskier bond sectors continued to outperform in 2017. Emerging-markets debt led the pack, with local-currency and hard-currency indexes up around 10% to 15%, but high-yield (up over 7%) and investment-grade corporate bonds (up over 6%) also did very well. In addition, the yield curve flattened, which meant longer-maturity bonds outperformed shorter-maturity bonds.
Here are this year's nominees for Fixed-Income Fund Manager of the Year. Their 2017 results are only part of what makes these managers special, however. The Morningstar Fund Manager of the Year awards have always strived to recognize both recent and long-term achievements. To qualify, managers' funds must have Morningstar Analyst Ratings of Gold or Silver. They must also have impressive absolute, relative, and risk-adjusted returns not only in 2017 but also over their tenures.
Brian Moriarty does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.