12
Federal Reserve chairman Ben Bernanke triggered a
wide-ranging sell-off by talking about when the
Fed might “taper” its bond-buying program. Although
he made clear that it was still somewhere in the
distance, it was enough to end complacency around
minuscule government-bond yields.
Long-term government bonds, especially Treasury
Inflation-Protected Securities, were hard hit. The aver-
age long-government fund lost
3%
, and
TIPS
funds
lost
4%
. The prospects of stronger growth but lower
inflation were particularly tough for
TIPS
. At the
same time, the U.S. economy has strengthened, while
China and some other emerging markets have weak-
ened, leading to a drop in inflation expectations.
PIMCO
was one firm that was bullish on longer-term
government debt, and a number of its funds lagged in
June;
PIMCO Total Return
PTTRX
lost
2
.
6%
. Muni
markets were stung, too, as they dealt with a rise in
interest rates and growing problems for Detroit.
Declining expectations for inflation also hit precious-
metals and commodity funds hard. The typical
precious-metals fund shed
18%
in June and com-
modities funds lost
5%
.
Oppenheimer Gold &
Special Minerals
OPGSX
shed
17%
. Funds outside
of precious metals that have gold stakes also had
a rough time.
Permanent Portfolio
PRPFX
shed
5%
to be one of the biggest losers in conservative
allocation.
Appleseed
APPLX
lost
2%
to be one of
the hardest-hit funds in mid-value.
In U.S. equities, the month was actually pretty tame
as economic growth countered some of the pain of
rising rates. The S&P
500
lost about
1%
. Small caps
held up the best as some funds like
Artisan Small
Cap Investor
ARTSX
even produced gains.
Overall, emerging markets fell about
6%
as slowing
growth and unrest in Brazil took their toll.
œ
Total Return
%
Through
A N N U A L I Z E D
06-30-13
1Mo YTD 3Yr
5Yr
10Yr
Benchmark Performance
Tapering Talk Spurs Sell-Off
Market Overview
|
Russ Kinnel
Large Growth
-1.8 11.0 16.2 5.1 6.2
Large Blend
-1.5 13.2 16.4 5.6 6.5
Large Value
-1.0 14.9 16.7 5.9 6.7
Mid-Cap Growth
-1.3 13.0 16.9 5.7 8.1
Mid-Cap Blend
-1.4 14.8 17.4 7.1 8.8
Mid-Cap Value
-0.9 15.9 17.6 8.0 9.1
Small Growth
0.2 16.0 18.1 7.5 8.3
Small Blend
-0.7 15.3 17.8 8.0 9.1
Small Value
-0.7 15.3 17.5 9.1 9.4
Aggressive Allocation
-2.1 7.1 11.9 4.3 6.4
Conservative Allocation
-2.0 1.5 7.5 4.7 4.6
Moderate Allocation
-1.8 5.7 10.7 4.8 5.7
Communications
1.1 8.2 14.7 4.3 7.8
Financials
-1.1 15.9 13.2 4.2 3.4
Global Real Estate
-3.0 0.2 14.2 3.3 9.2
Health
-1.5 21.3 22.5 12.2 9.3
Natural Resources
-5.2 -5.1 4.8 -8.1 9.4
Precious Metals
-17.6 -46.1 -20.3 -11.4 6.0
Real Estate
-2.2 4.7 16.8 6.7 9.9
Technology
-1.3 9.9 14.3 7.2 7.6
Utilities
0.2 9.9 15.4 2.7 9.7
S&P 500
-1.3 13.8 18.5 7.0 7.3
S&P MidCap 400
-1.9 14.6 19.5 8.9 10.7
Russell 2000
-0.5 15.9 18.7 8.8 9.5
Diversified Asia/Pac. Stock
-3.5 2.3 8.2 0.9 9.3
Diversified Emerg. Mkts.
-6.6 -7.8 3.5 -1.6 12.4
Europe Stock
-3.3 3.4 10.3 -1.4 7.9
Foreign Large Blend
-3.1 2.4 9.5 -1.2 7.1
Foreign Large Growth
-3.4 1.7 9.8 -0.1 7.6
Foreign Large Value
-2.8 3.2 8.9 -1.0 7.1
Foreign Small/Mid Growth
-2.5 7.3 13.5 2.9 11.7
Foreign Small/Mid Value
-2.7 4.9 10.7 1.3 9.1
World Stock
-2.4 7.3 12.2 2.6 7.6
MSCI EAFE
-3.6 4.1 10.0 -0.6 7.7
MSCI World
-2.5 8.4 13.7 2.7 7.3
MSCI Emerging Markets
-6.8 -10.9 0.8 -2.9 11.0
MSCI Europe
-4.8 2.2 10.5 -1.4 7.5
MSCI Latin America
-9.1 -16.1 -4.3 -7.7 14.8
MSCI Pacific
-1.2 7.8 9.5 1.1 8.2
High-Yield Bond
-2.5 1.4 9.6 8.2 7.1
Inflation-Protected Bond
-3.4 -6.9 3.8 3.4 4.2
Intermediate-Term Bond
-2.1 -2.3 4.2 5.3 4.0
Muni National Long
-3.8 -3.7 4.5 4.9 3.7
World Bond
-2.3 -4.7 4.0 4.2 4.7
BarCap US Agg Bond TR USD -1.6 -2.4 3.5 5.2 4.5
BofAML US HY Master II TR -2.6 1.5 10.4 10.6 8.8
BarCap Municipal TR USD -2.8 -2.7 4.5 5.3 4.4
