According to Morningstar's separate account/collective investment trust database, the top-performing fixed-income managers in 2022 managed to post positive returns during a historically tough year for the asset class. Five of the top 10 managers were in Morningstar's ultrashort bond category, while three were in the multisector bond category. The remaining two included one in the non-traditional bond category, and one, which was the top overall, in Morningstar's muni national long bond category. That top-performing strategy was the 16th Amendment Advisors LLC's Vicksburg strategy, which posted a gross return of 46.03% for the year. John J. Lee, a co-founder and managing member of the firm, said in an email to Pension & Investments, that the strategy benefited from a "cautious and bearish outlook on interest rates in general. Further, it took advantage of the disarray in the marketplace due to sharply rising rates and historically volatile markets." Lee said that it “holds investment-grade municipal bonds, corporate bonds, and their hedges in a strategy that is targeted to investors looking for non-correlated high-grade fixed-income exposure.” The second-ranked strategy was T. Rowe Price's dynamic global bond strategy, which returned 4.66% for the year. The strategy falls into Morningstar's non-traditional bond category and holds U.S. and international debt securities.
Finsum:According to Morningstar's SMA/CIT database, five of the top ten performing fixed-income managers were in the ultrashort bond category, three were in the multisector bond category, while the top two overall were in the muni national long bond category and the non-traditional bond category.