Hamlin equity accounts increased approximately 6.06% over the last three months as investors reacted favorably to strong Q1 earnings reports and optimistic outlooks related to a re-opening economy. Our municipal bond portfolios increased in value, benefiting from both lower Treasury yields and concern over proposed income tax rate increases.
Hamlin equity accounts increased 12.48% during the first quarter. The S&P 500 Index advanced 6.17% for the quarter as investors anticipated strong earnings growth driven by flush consumers spending stimulus checks in a re-opening economy. Hamlin bond accounts increased modestly in value despite an 80-basis point back-up in the 10-year Treasury yield to 1.73% over the first three months of 2021.
Hamlin equity accounts increased 15.00% during the fourth quarter. The S&P 500 advanced 12.15% for the quarter, celebrating better than expected COVID vaccine efficacy rates and the resolution of a contentious presidential election. Hamlin bond accounts increased in value despite a 24-basis point back-up in the 10-year Treasury yield to 0.93% over the last three months of 2020. In an effort to shorten this quarterly letter, we are publishing our 2021 Stock Market Outlook independently.
Hamlin’s equity accounts increased approximately 4.80% over the last three months as the stock market climbed steadily through mid-September to an all-time high. Investors anticipated a post-COVID re-opening boost to earnings and record- setting global monetary stimulus pushed PE multiples to levels not seen since 2000. Hamlin’s high-yield tax exempt bond account values advanced in line with the broader high yield municipal bond market as 10-year U.S. Treasury bond yields dropped approximately 5 basis points.