Morningstar published "The Year in Bond Funds," recapping a year that had its share of surprises. It says, "Coming into 2014, prognosticators had the fixed-income markets all figured out. Many posited that it would be a rough year for U.S. Treasuries and other rate-sensitive bonds as the Fed unwound its bond-buying program. Meanwhile, riskier assets, including junk bonds and bank loans, seemed poised to outperform against the backdrop of manageable corporate-debt levels, decent economic growth, and strong investor appetite. Munis were a trouble spot amid bad news out of Detroit and Puerto Rico, while many thought of Russia as a relatively high-quality name in the emerging-markets arena. Finally, Bill Gross was still synonymous with PIMCO Total Return, which, despite some outflows the previous year, was sitting on net assets of close to $240 billion. It's fair to say that script played out differently. Below we recap several of the biggest stories in bond fund land from 2014." It continues, "Bill Gross' departure from PIMCO and from the helm of the once-largest fund in the world was one of the biggest fixed-income stories of the year.... Turning to the markets, 2014 showed once again how hard it is for fixed-income managers to get interest-rate bets right, especially in the short term.... The rally was much more muted in shorter maturities, and the yield on the three-year Treasury actually increased over the course of the year, reflecting in part the expectation that the Fed will start to raise short-term rates, however gradually, sometime in 2015." In other news, Forbes profiles Thomas Atteberry, portfolio manager of the DFA New Income Fund.

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