The bond sector continues to show weakness except for high yield which has been tied to the fortunes of the oil markets. The year shows flat performance in most cases which masks the wild return ride over the last twelve months. Strong double digit returns in long duration bonds were completely eliminated. Short duration served as low risk protection with the one good performer being TIP's as inflation numbers and expectations increased.
The country equity funds were closely tied to trade expectations with the big loser being Mexico especially since the US election. Asian countries closely tied to trade have seen a bumpy ride in 2016. Brazil has been strongest outperformed but has started to give back some of its strong returns from earlier in the year. Europe shows mixed returns consistent with the slow growth for 2016. The US rally has carried over to the rest of the world