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Australian Bond Funds August 2017

During August, bond yields fell in most advanced economies. Yields started falling at the very beginning of August and this set the trend for the rest of the most. However, for some reason, Australia was not one of those countries and it was not because Australian economic data during the month was notably strong. Australian 10 year bond yields rose for the first couple of days of the month and while offshore leads were followed for the main part, another increase in yields at the very end of the month ensured Australian yields were a few basis points higher compared to the end of July. Yields on 3 year bonds jumped 8bps to 2.03%, 10 year yields added 3bps to 2.71% and the 20year bond yield inched up 1bps to 3.25%.

As such, conditions were challenging for most funds and 14 of 35 funds finished in the black. The best performing fund was the Spectrum Strategic income Fund with a return of 046% for the month. The next highest return was produced by the Alexander Credit Opportunities Fund (0.44%), followed by the Alpha Enhanced Yield Fund, which returned 0.40% return.

 Over a 1 year period to the end of June, the Alexander Credit Opportunities Fund retained its top-ranked position with a return of 6.90%. Spectrum’s Strategic Income Fund retained its second position with a return of 4.89%. AMP’s Capital Corporate Bond Fund was dislodged from its third-ranked position by the Alpha Enhanced Yield Fund’s return of 3.36%.

AUSTRALIAN FIXED INTEREST FUNDS

AUSTRALIAN FIXED INTERESTASX
mFund
1m (%)3m (%)1y (%)3y (%)5y (%)
Aberdeen Australian Fixed Incomemfund-0.06-0.78-0.813.784.07
Advance Aus Fixed Interest Multi-Blend-0.14-1.01-1.772.332.89
AMP Capital Corporate Bondmfund0.200.673.293.074.49
Alexander Credit Opportunities Fund0.441.616.907.299.65
Alpha Enhanced Yieldmfund0.401.373.362.793.85
AMP FLI S2-AMP Australian Bond-0.12-0.89-1.332.733.60
AMP Gen-BlackRock Aust Fixed Int Ind-0.10-0.91-1.742.692.96
Altius Bond-0.010.321.243.013.57
BT Enhanced Credit WS0.150.041.634.044.79
BT Fixed Interest Retail-0.06-0.94-1.872.532.79
BT Fixed Interest WS0.05-0.72-1.543.423.72
BT Government Bond0.01-0.79-1.503.663.68
CFS FC Inv-Aberdeen Aus Fixed Inc-0.16-1.08-1.782.732.94
CFS FC W Inv-CFS W Australian Bond-0.07-0.78-1.073.053.63
DDH Fixed Interest-0.12-0.83-0.973.414.10
Spectrum Strategic Incomemfund0.461.184.894.646.38
Jamieson Coote Bonds Active0.15-0.59-0.90
Legg Mason Western Asset Australian Bond Trust Amfund0.05-0.42-0.144.084.83
Macquarie Australian Fixed Interest-0.01-0.700.573.914.50
Macquarie Core Plus Australian Fxd Intr-0.56-0.38-0.383.794.51
Mercer Australian Sovereign Bond Fund-0.05-1.00-1.953.673.58
Nikko AM Australian Bond-0.04-0.62-0.643.804.21
Omega Core Australian Bond Fund-0.05-0.70-0.643.703.88
OnePath OA FR IP-Optimix Aus Fixed Int-0.04-0.80-0.723.143.69
Henderson Australian Fixed Interest Tr0.04-0.49-0.083.844.67
Henderson Fixed Interest Wholesale0.02-0.53-0.203.724.55
Henderson Tactical Income Trust0.150.512.243.054.17
Perpetual WFIA-Schroder Fixed Income-0.26-1.06-1.481.832.58
Perpetual WFIA-Vanguard Aust FI Idx-0.10-0.93-1.882.592.85
PIMCO EQT Wholesale Australian Bond Bmfund-0.07-0.69-0.683.934.11
PIMCO EQT Wholesale Australian Focus Bmfund0.030.000.993.033.37
SSgA Australian Fixed Income-0.03-0.68-0.763.773.97
UBS Australian Bondmfund-0.05-0.63-0.393.664.10
Vanguard Australian Fixed Interest Index-0.02-0.69-0.833.693.96
Vanguard Australian Govt Bond Index-0.07-0.93-1.653.63.69
Bloomberg AusBond Composite 0+Y TR AUD-0.01-0.66-0.663.894.16

*End of August 2017. Return in AUD after fees

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