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Australian Bond Funds October 2017

The month started with 10 year bond yields around 2.87%. Yields dropped by around 2bps per week for the first three weeks, amid reports of more North Korean missile tests and a generally desire for safe-haven assets. Local data reports such as soft September quarter CPI figures aided and abetted the trend. Towards the end of the month bond yields paused and then were hammered down in the final two business days of the month on the back of non-inflationary U.S. PCE figures and dovish ECB statements. By the end of the month, yields on 3 year and 10 year yields had each dropped 18bps to 2.00% and 2.69% respectively while the 20 year bond yield fell a fraction less and finished at 3.18%.

October was the sort of month fund managers wish for every month.  As a result almost all Australian bond funds in the YieldReport survey finished in the black. The best performing fund was the Macquarie Core Plus Australian Fixed Interest fund with a return of 1.51%. Mercer’s Australian Sovereign Bond fund was next with a return of 1.36% and PIMCO’s Australian Bond Wholesale fund was third in line with a return of 1.28%.

Over a 1 year period, Spectrum’s Strategic Income fund’s returned 5.05%, which moved it from its second place in September to the top spot in October. The Alpha Enhanced Yield fund moved from third to second with a 12 month return of 3.48% and AMP Capital Corporate Bond fund’s 3.34% placed it third.

 

 

AUSTRALIAN FIXED INTEREST FUNDS

AUSTRALIAN FIXED INTERESTASX
mFund
1m (%)3m (%)1y (%)3y (%)5y (%)
Aberdeen Australian Fixed Incomemfund1.160.781.403.864.01
Advance Aus Fixed Interest Multi-Blend1.030.470.452.422.77
AMP Capital Corporate Bondmfund0.380.803.343.134.18
Alexander Credit Opportunities Fund0.771.576.437.217.67
Alpha Enhanced Yieldmfund-0.210.353.482.533.49
AMP FLI S2-AMP Australian Bond1.040.530.902.833.46
AMP Gen-BlackRock Aust Fixed Int Ind0.970.470.482.742.92
Altius Bond0.590.671.893.023.38
BT Enhanced Credit WS0.941.033.164.164.60
BT Fixed Interest Retail0.900.510.412.552.76
BT Fixed Interest WS0.970.670.823.223.64
BT Government Bond1.120.751.183.653.71
CFS FC Inv-Aberdeen Aus Fixed Inc1.090.520.412.802.90
CFS FC W Inv-CFS W Australian Bond0.960.571.263.103.48
DDH Fixed Interest1.230.821.553.533.97
Spectrum Strategic Incomemfund0.551.165.094.725.79
Jamieson Coote Bonds Active0.930.691.36
Legg Mason Western Asset Australian Bond Trust Amfund1.140.922.134.174.61
Macquarie Australian Fixed Interest1.140.760.574.024.26
Macquarie Core Plus Australian Fxd Intr1.510.752.954.254.36
Mercer Australian Sovereign Bond Fund1.360.691.003.673.64
Nikko AM Australian Bond1.200.881.783.874.18
Omega Core Australian Bond Fund1.260.751.583.783.85
OnePath OA FR IP-Optimix Aus Fixed Int1.010.641.373.183.57
Henderson Australian Fixed Interest Tr1.100.861.983.934.41
Henderson Fixed Interest Wholesale1.090.831.863.824.28
Henderson Tactical Income Trust0.510.802.633.153.84
Perpetual WFIA-Schroder Fixed Income0.880.280.481.952.47
Perpetual WFIA-Vanguard Aust FI Idx0.980.460.352.632.81
PIMCO EQT Wholesale Australian Bond Bmfund1.280.851.794.014.05
PIMCO EQT Wholesale Australian Focus Bmfund0.730.682.173.073.27
SSgA Australian Fixed Income1.090.741.543.813.93
UBS Australian Bondmfund1.200.922.053.774.05
Vanguard Australian Fixed Interest Index1.080.731.463.753.92
Vanguard Australian Govt Bond Index1.150.650.913.633.70
Bloomberg AusBond Composite 0+Y TR AUD1.090.771.643.944.12

*End of October 2017. Return in AUD after fees

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