- U.S. and international equities saw major declines this week.
- The best-performing fund for 2018 on a year-to-date basis is the PRIMECAP Odyssey Aggressive Growth (POAGX).
- Long Government Taxable Bonds is the best-performing mutual funds subcategory based on rolling-month returns.
- Make sure to check out the previous edition of the Weekly Roundup to keep track of changing trends in the mutual funds space.
This week’s best-performing sector was energy, down only 0.92%. This sector consists of companies like Exxon Mobil Corp (NYSE:XOM), which was down 0.20% for the week.
International Equities –The international markets were also down big this week, with the MSCI Developed Market Index falling 2.57% to close at 1,990. The MSCI Emerging Market Index had a decrease of 3.35% to close at 1,172. Japan’s Nikkei 225 also saw a decrease this week of 4.88% to close at 20,618.
Commodities – The commodities markets were all up this week, with the exception of copper. Crude oil increased by $3.54 per barrel to close at $65.88. The price of gold increased by $38 per troy ounce to close at $1,349. On the contrary, copper prices decreased by $0.11 to close at $2.99.
Taxable Bonds – Treasury yields were all down this week, with the the 2-year Treasury falling by 5 bps and now yielding 2.25%. The 10-year Treasury yield fell by 4 bps and now yields 2.81%. The 30-year Treasury decreased by 2 bps and now yields 3.06%.
Municipal Bonds – Municipal yields moved up this week, with the exception of the 30-year AAA-rated bonds. The 2-year AAA-rated bonds increased by 9 bps to yield 1.67%. The 10-year AAA-rated bonds saw an increase of 2 bps, while the 30-year AAA-rated bonds decreased by 2 bps to yield 3.07%. Municipal bond funds saw inflows of $405 million this week, marking the third consecutive week of net inflows. The largest credit spread for the two-year securities decreased to 58 bps for the week.
Be sure to read important tips on how to invest in the right commodity-based mutual fund.
Explore our Mutual Fund Education section to learn more about important mutual funds concepts.
Performance Snapshot: Top Fund Category
|Category||Top Subcategory||MTD Subcategory Return (%)||Top Subcategory Performer||Top Subcategory Performer||MTD Fund Return (%)||Performance Rationale|
|U.S. Equity Fund||Small Cap Growth Equities||-1.47%||Osterweis Emerging Opportunity||OSTGX||3.83%||The fund's largest holding is Bio-Techne Corp (NASDAQ:TECH), which is up over 15% year-to-date.|
|International Equity||Foreign Small/Mid Growth||-2.62%||Brown Capital Mgmt Intl Sm Co Inv||BCSVX||1.71%||International small and mid sized companies had the best results in this segment, with the fund’s top holding Ambu A/S B (AMBU B) up over 19% YTD.|
|Commodities||Broad Basket||-0.83%||PIMCO CommoditiesPLUS® Strategy Instl||PCLIX||1.35%||With commodities mostly up this week, this fund had upside exposure to oil and gold.|
|Taxable Bonds||Long Government||1.81%||PIMCO Extended Duration Instl||PEDIX||2.72%||Longer maturity bonds saw the biggest gain this week.|
|Municipal Bonds||High Yield Municipal Bonds||0.36%||Oppenheimer Rochester® High Yld Muni B||ORNBX||1.57%||High yield municipal bonds gained the most this week.|
Performance Snapshot: Top Fund
One of the the fund’s largest holdings is Nektar Therapeutics Inc. (NAS: NKTR), which is up over 72% on a year-to-date basis.
Top 5 Performers
The following table provides the top-performing mutual funds on a YTD basis as of March 23, 2018. Only those funds that are rated five stars by Morningstar and that generated YTD returns greater than or equal to that achieved by the S&P 500 are included.
|Name||Ticker||Category||YTD %||Net Expense Ratio||% of Assets in Top 10 Holdings||Total Assets $ (Millions)||Top Sector Invested|
|PRIMECAP Odyssey Aggressive Growth||POAGX||Mid-Cap Growth||11.37%||0.64%||33.6%||$ 10,600||Healthcare|
|Leland Thomson Reuters Vntr Cptl Idx I||LDVIX||Large Blend||10.65%||1.74%||26.5%||$ 35||Technology|
|Transamerica Capital Growth I||TFOIX||Large Cap Growth Equities||9.69%||0.55%||54.2%||$ 927||Technology|
|Morgan Stanley Inst Growth I||MSEQX||Large Cap Growth Equities||9.62%||0.55%||51.3%||$ 4,740||Technology|
|ClearBridge Select IS||LCSSX||Mid Cap Growth Equities||9.44%||2.02%||28.8%||$ 34||Technology|