Skip to Content
Fund Spy

An Early Look at the Contenders for Morningstar Fixed-Income Fund Manager of the Year

These funds have shone in a year that's offered some surprises for bond-fund investors.

Mentioned: , , , , , , , , ,

Several weeks ago, we provided an early look at several front-runners for the Morningstar Domestic-Stock Fund Manager of the Year honors. Since then, we’ve also featured candidates in the International-Stock, Alternatives, and Allocation categories. Today, we’ll tackle potential contenders in the fixed-income world.

The first 10 months of 2014 have thrown fixed-income managers a few curve balls. Many investors and portfolio managers came into the year expecting a rise in bond yields. However, the yield on the 10-year U.S. Treasury peaked at 3.04% on Dec. 31, 2013, and, despite a short sell-off in September, has marched steadily downward from there. Meanwhile, investors who had been well-rewarded for taking on gobs of credit risk saw riskier markets take a breather in the second half of the year. With a 4.0% return through Nov. 18, the Bank of America Merrill US Lynch High Yield Master II Index is still well into positive territory for the year to date but has been much less dominant than in recent years. Meanwhile, the broad Barclays U.S. Aggregate Bond Index has proved a more difficult bogy to beat this year, with the intermediate-term bond category’s average return trailing it by 40 basis points through mid-November.

Sarah Bush does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.