Top Performer Taxable Bond Mutual Funds of 2011

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One of the top performer asset classes of Mutual Fund for year 2011 is taxable bond funds. Almost any classes of taxable bond and non-taxable bond funds had beaten the stock funds especially international stock funds. This article will look into the top performer taxable bond funds of 2011. Some of the top performers are: DoubleLine Core Fixed Income N, William Blair Income N, Vanguard Long-Term Bond Index, PIMCO Global Bond (USD-Hedged) A, and more.

Top Performer Bond Funds 2011
There are varieties of taxable bond funds such as intermediate term bond fund, long term bond fund, government bond fund, high yield bond fund, multisector bond fund, world bond fund, and so on. I’ll provide the 5 top performers of each class. More details can be found below.

Note: Although the performance of these funds is outstanding, future performance is not a guarantee. Please review this fund in details. I also provide the tables which show the fund performance in 1 year, 3 year, 5 year, and 10 years.

Intermediate Term Bond

This Intermediate Term Bond fund is one of the most popular bond funds for investor to invest in. This fund holds intermediate duration of bonds in its assets (including government and corporate bond). Most of these bond funds also are rated as investment grade bond funds.

The 5 Top Performer Intermediate Term Bond Funds of 2011 are:
  1. DoubleLine Core Fixed Income N (DLFNX)
    • Managed by Jeffrey Gundlach, 4.81% yield, 0.74% expense ratio fee
  2. Fidelity Corporate Bond (FCBFX
    • low expense fee of 0.45%, no sales load
  3. Vanguard Intermediate-Term Bond Index Inv (VBIIX)
    • passively managed, 5 star rating, 0.22% expense ratio
  4. Sextant Bond Income (SBIFX)
    • 3 star rating, yield of 3.39%, no load
  5. PACE Strategic Fixed Income A (PBNAX)
    • $857 million total net assets, 4 star rating, 4.5% sales load

NoFund NameSymbol1YR3YR5 Yr10 YrExpense Ratio
1
DoubleLine Core Fixed Income N
DLFNX
11.12%
-
-
-
0.75%
2
Fidelity Corporate Bond
FCBFX
11.09%
-
-
-
0.45%
3
Vanguard Interm-Term Bond Index Inv
VBIIX
10.61%
8.91%
7.84%
6.63%
0.22%
4
Sextant Bond Income
SBIFX
9.86%
8.39%
5.89%
5.49%
0.90%
5
PACE Strategic Fixed Income A
PBNAX
9.59%
11.67%
8.75%
6.90%
1.06%

Short Term Bond

The best way to invest your fund for short period is through short term bond funds. This taxable bond fund has most of its assets in short duration bonds (i.e. less susceptible to interest rate hike).

The 5 top performer short term bond funds of 2011 are:
  1. William Blair Income N (WBRRX)
    • $5,000 minimum initial invest, 0.85% expense ratio, no load
  2. Thornburg Limited-Term Income A (THIFX)
    • 5 star rating, 1.50% front end sales load
  3. Wasatch-1st Source Income (FMEQX)
    • $139 million, 0.71% expense ratio, $2,000 min initial investment
  4. UCM Short Duration Investor (UCMRX)
    • only $6.7 million total assets, yield of 1.36%, no load
  5. American Funds Intermediate Bond Fund of America A (AIBAX)
    • 2.50% sales load, 80% turnover rate

NoFund NameTicker1YR3YR5 Yr10 YrExpense Ratio
1
William Blair Income N
WBRRX
5.21%
6.90%
3.86%
3.94%
0.85%
2
Thornburg Limited-Term Income A
THIFX
5.08%
9.18%
5.89%
4.96%
0.99%
3
Wasatch-1st Source Income
FMEQX
3.86%
4.68%
4.63%
4.06%
0.74%
4
UCM Short Duration Investor
UCMRX
3.72%
-
-
-
0.85%
5
American Funds Interm Bond Fd of Amer A
AIBAX
3.71%
4.92%
3.64%
3.54%
0.60%

Long Term Bond

This long term bond funds may have higher yield than other taxable bond funds, however the NAV is highly correlated to the interest rate policy.

The 5 Best Performer Long Term Taxable Bond Funds of 2011 are:
  1. Vanguard Long-Term Bond Index Inv (VBLTX)
    • has a yield of 4.19%, 2011 return of 22.05%, low expense fee
  2. BlackRock Long Duration Bond Inv A (BLADX)
    • 4% sales load, $241 million assets, 2 star rating
  3. Eaton Vance Build America Bonds A (EBABX)
    • no rating, 10% turnover rate
  4. Vanguard Long-Term Investment-Grade Inv (VWESX)
    • analyst rating of Bronze, 5.03% yield
  5. SunAmerica 2020 High Watermark A (HWKAX)
    • 1 star rating, sales load of 5.75%
NoFund NameSymbol1YR3YR5 Yr10 YrExpense Ratio
1
Vanguard Long-Term Bond Index Inv
VBLTX
22.05%
11.05%
9.66%
8.41%
0.22%
2
BlackRock Long Duration Bond Inv A
BLADX
21.59%
11.68%
-
-
0.91%
3
Eaton Vance Build America Bonds A
EBABX
20.77%
-
-
-
0.95%
4
Vanguard Long-Term Investment-Grade Inv
VWESX
17.18%
12.16%
8.41%
7.82%
0.24%
5
SunAmerica 2020 High Watermark A
HWKAX
16.90%
5.75%
0.74%
-
1.65%

High Yield Bond

For the second half of 2011, the high yield bond funds have been worst performer bond funds. However, these funds still manage to close in positive territory. These 5 top performer high yield bond funds include:
  1. Spirit of America Income A (SOAIX)
    • $500 min invest, 16.8% turnover rate
  2. Westcore Flexible Income (WTLTX)
    • 2 star rating, no load, 0.85% expense ratio
  3. Vanguard High-Yield Corporate Inv (VWEHX)
    • Silver analyst rating, low expense fee of 0.25%
  4. JHancock3 Core High Yield A (JYIAX)
    • 9.87% yield, 207% turnover rate
  5. Columbia Income Opportunities A (AIOAX)
    • $2,000 minimum initial investment, $1.9 Billion assets

NoFund NameSymbol1YR3YR5 Yr10 YrExpense Ratio
1
Spirit of America Income A
SOAIX
16.12%
-
-
-
1.10%
2
Westcore Flexible Income
WTLTX
8.12%
19.51%
2.91%
6.38%
0.85%
3
Vanguard High-Yield Corporate Inv
VWEHX
7.13%
18.76%
6.11%
6.83%
0.25%
4
JHancock3 Core High Yield A
JYIAX
6.74%
-
-
-
1.25%
5
Columbia Income Opportunities A
AIOAX
6.13%
18.96%
6.83%
-
1.04%

Inflation Protected Bond

The Top 5 Performer Inflation Protected Taxable Bond funds of 2011 are:
  1. GMO Inflation Indexed Plus Bond III (GMITX)
  2. DFA Inflation-Protected Securities I (DIPSX)
  3. American Independence US Inflation-Index A (FNIHX)
  4. Vanguard Inflation-Protected Secs Inv (VIPSX)
    • Gold Analyst Rating, 4.01% yield, 0.22% expense fee
  5. Goldman Sachs Inflation Protected Secs A (GSAPX)
    • $2,000 min initial investment, 3.75% sales load

NoFund NameSymbol1YR3YR5 Yr10 YrExpense Ratio
1
GMO Inflation Indexed Plus Bond III
GMITX
14.98%
19.49%
5.72%
-
0.47%
2
DFA Inflation-Protected Securities I
DIPSX
14.54%
10.74%
8.41%
-
0.13%
3
American Indep US Infl-Idx A
FNIHX
13.75%
10.16%
8.12%
7.52%
0.77%
4
Vanguard Inflation-Protected Secs Inv
VIPSX
13.24%
10.03%
7.63%
7.33%
0.22%
5
Goldman Sachs Inflation Protected Secs A
GSAPX
13.22%
9.80%
-
-
0.62%

MultiSector Bond

These MultiSector Bond fund may invest in any different bond classes such as sovereign bond, US government bond, corporate bond, mortgage backed bond, municipal bond, global bond, etc. The 5 Best Performing MultiSector Bond funds of 2011 are:
  1. GMO Strategic Fixed Income III (GFITX)
  2. RiverNorth Doubleline Strategic Inc R (RNDLX): 64% turnover rate, corporate bond is the top holding
  3. Hartford Strategic Income I (HSNIX)
    • Total assets are $486 million, yield of 5.60% 
  4. Legg Mason WA Strategic Income A (SDSAX)
  5. Columbia Strategic Income A (COSIX)
    • 4.75% sales load, yield of 5.46%

NoFund NameTicker1YR3YR5 Yr10 YrExpense Ratio
1
GMO Strategic Fixed Income III
GFITX
13.77%
14.61%
3.03%
-
0.42%
2
RiverNorth Doubleline Strategic Inc R
RNDLX
11.04%
-
-
-
1.45%
3
Hartford Strategic Income I
HSNIX
7.60%
14.51%
-
-
0.71%
4
Legg Mason WA Strategic Income A
SDSAX
7.13%
15.85%
5.18%
5.96%
1.11%
5
Columbia Strategic Income A
COSIX
6.44%
11.81%
6.74%
7.93%
0.77%

World Bond

These world bond funds, also known as global bond funds, invest in foreign corporate and government bond (sovereign debt). The 5 Top Performing World Bond Funds of 2011 are:
PIMCO
  1. PIMCO Global Bond (Unhedged) D (PGBDX)
  2. GMO Global Bond III (GMGBX)
  3. PIMCO Global Bond (USD-Hedged) A (PAIIX)
  4. GMO Currency Hedged Intl Bond III (GMHBX)
  5. PIMCO Foreign Bond (Unhedged) D (PFBDX)

NoFund NameTicker1YR3YR5 Yr10 YrExpense Ratio
1
PIMCO Global Bond (Unhedged) D
PGBDX
8.77%
12.04%
8.21%
8.57%
0.95%
2
GMO Global Bond III
GMGBX
8.47%
14.24%
5.25%
7.47%
0.43%
3
PIMCO Global Bond (USD-Hedged) A
PAIIX
8.20%
10.34%
6.44%
5.72%
0.90%
4
GMO Currency Hedged Intl Bond III
GMHBX
7.97%
12.74%
3.52%
4.78%
0.44%
5
PIMCO Foreign Bond (Unhedged) D
PFBDX
7.95%
13.48%
8.96%
-
0.90%

Disclosure: I’m long VBIIX in my IRA

Other Top Performer Mutual Funds of 2011:

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