Vista’s bond portfolios turned in positive performance and generally beat their benchmarks.
As growth continues to increase on a global basis, bonds in general have a challenging future in the short-term. That said, no one can consistently predict interest rates, let alone the effect of future economic growth on bond prices. We will continue to keep our stance in intermediate bonds since they deliver what we believe are the best returns for their comparatively low level of risk.
The positive news going forward is that maturing bond proceeds will be reinvested at higher interest rates as global rates continue to rise. As with other asset classes, it’s always important to allocate assets based on long-term expectations instead of attempting to profit from short-term moves or expectations.