Best-Performing Bond Mutual Funds

Corporate high-yield bond funds garnered the best returns during the month of April.

By Kevin Baker May 09, 2008

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We reviewed some of the best-performing open-end bond mutual funds for the month of April. These funds were standouts in their categories, which are ranked by the average one-month total return for each group.

Of the 18 different types of fixed-income funds listed below, "corporate - high yield" bond funds top the list, averaging a one month return of 3.07% for the 151 similarly targeted funds.

The best-performing member of this group is the E- rated Oppenheimer Champion Income A Fund (OPCHX) that gained 8.24% in April. The fund has a net expense ratio of 1.78%.

The first and third largest holdings, at 3.9% and 2.7% of assets, are in two year and 10 year US Treasury futures. Corporate debt holdings from Sprint Nextel (S), Fannie Mae (FNM), HBOS (HBOOY) and HSBC Fin Cap Trust IX (HBC) are also top holdings of Oppenheimer Champion Income.

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The set of 33 loan participation bond funds ranked second averaging 2.68% in April. Representing the best of this group, the E rated Van Kampen Senior Loan Fund (VSLAX) returned 4.14% for the period. The top security holdings include Tribune Company (TXA), Univision Communications, Charter Communications (CHTR), Metro-Goldwyn-Mayer Studios (MGM) and Harrah's Entertainment (HET).

Unlike the two funds noted above that have lost money over the last year, the B+ rated TCW Emerging Mkt Income N Fund (TGINX) has consistently generated respectable positive returns.

At year's end, the fund was invested in at least 20 different countries with Mexico at 12.9%, Brazil at 10.8%, Russia at 10%, Kazakhstan at 7.7% and Indonesia at 6.8% being the largest concentrations. The fund is managed by Luz Padilla, who has been with TCW Funds since 1994.

Best Performing Open-end Bond Mutual Funds by Objective for April
Objective	Obj 1 Month Avg %	Fund (Ticker) Rating	Total Return 1 Month %	Total Return 3 Months %	Total Return 1 Year %
Corporate - High Yield	3.07	Oppenheimer Champion Income A (OPCHX) E-	8.24	1.60	-5.28
Loan Participation	2.68	Van Kampen Senior Loan Fund (VSLAX) E	4.14	-2.02	-8.84
Emerging Market Income	1.26	TCW Emerging Mkt Income N (TGINX) B+	2.05	2.44	2.28
Municipal - Single State	1.10	Eaton Vance SC Muni A (EASCX) E-	3.96	-1.37	-4.80
Municipal - High Yield	1.07	Nuveen CA High Yield Muni Bd A (NCHAX) U	3.15	-2.57	-11.48
Municipal - Insured	1.03	Eaton Vance FL Plus Ins Muni Fd A (EAFIX) E-	3.71	-0.83	-2.65
Municipal - National	0.76	Eaton Vance National Muni A (EANAX) E-	4.96	-1.95	-6.51
Multi-Sector Bond	0.74	Franklin Strategic Income A (FRSTX) C+	1.88	1.99	4.80
General Bd - Short & Interm	0.47	Metropolitan West Alpha Trak 500 (MWATX) E-	6.11	-3.13	-12.85
General Bd - Long	0.43	Natixis Loomis Sayles Strat Inc A (NEFZX) C-	2.91	0.54	4.25
General Mortgage	0.16	PIMCO Intl StkPlus Tr Strat A (PIPAX) E	7.82	-0.45	-9.22
General Bd - Investment Grade	-0.09	Credit Suisse Commdty Retrn Str A (CRSAX) C	4.15	8.66	23.19
Corporate - Investment Grade	-0.33	Flag Investors Income Opportunity A (FLIOX) U	3.33	-1.11	-10.03
US Government/Agency	-0.38	T. Rowe Price GNMA Fd (PRGMX) A	0.09	0.57	6.61
US Government - Short & Interm	-0.43	Rydex Ser-Inv Govt Lg Bd Stgy A (RYAQX) E-	2.84	0.77	-7.32
Global Income	-0.88	First American High Inc A (FJSIX) D	3.97	2.06	-1.04
US Government - Long	-1.29	WesMark Govt Bond Fund (WMBDX) A	0.24	1.08	7.00
US Treasury	-1.54	Direxion 10 Year Note Bear 2.5X Fd (DXKSX) E-	6.34	-0.35	-18.17
Source: TheStreet.com Ratings

For an explanation of our ratings, click here.