Global Bond Funds April 2016


[private role=’subscriber’]Global fixed interest April performance

The median 1 month performance of funds in the YieldReport survey of global bond funds was 0.44% (previously 1.25%) and the median return over the last 12 months was 3.23% (previous 2.02%). Although bond yields rose in most advanced economies, yields are still close to all-time lows and typically lower than April 2015, with the exception of France and Italy where the 10 year bond yield is approximately the same.

33 of the 42 funds in the survey produced positive returns for the month while 36 of the funds also produced positive returns over the last 12 months. Rising yields in the last month have been offset somewhat by a weaker Australian currency but any funds with unhedged yen exposure would have been happy in April as it was one of the currencies where bond yields fell.

Perhaps the sibling rivalry at Legg Mason is starting to bear fruit. Their Western Assets Global Multi Strategy Balanced fund took the top spot for April from their fellow stable-mate Brandywine Global Opportunistic Fund. Although the performance for April (2.77%) was not quite as impressive as March (3.89%), it is still a magnificent performance all the same and 2.33% more than the median performance of global funds in the YieldReport survey. However, the fund, as with its sibling still has some way to go. It was ranked 31 out of 32 over the last 12 months, 30 out of 34 over 3 years and 25 out of 29 over five years.


[private role=’subscriber’]

GLOBAL BOND FUNDS1m (%)3m (%)1y (%)3y (%)5y (%)
Advance Int Fix Intr Multi-Blend 4-0.021.300.562.635.26
AMP Capital FD Intl Bond A 30.362.272.753.965.68
AMP Capital International Bond 40.402.403.294.516.24
ANZ OA IP-CFS Global Credit Income EF 170.712.890.202.563.61
Bentham W/S Global Income 11.982.21-0.654.966.56
Bentham W/S High Yield 21 2.545.710.214.988.27
Bentham Syndicated Loan ASX Class 17 2.094.300.794.967.01
Kapstream WS Absolute Return Income0.440.812.123.524.65
BlackRock Monthly Income C 17 1.241.80-0.344.255.44
BlackRock WS International Bond 7 0.372.224.345.807.31
BT Global Fixed Interest WS 16 -0.210.363.325.046.17
BT Institutional Enhanced Gbl Fixed Int 16 -2.24-1.641.414.526.54
CFS Wholesale Global Bond 15 -
CFS Wholesale Global Corporate Bond41.514.563.875.508.41
DDH Global Fixed Interest Alpha 17 0.78-0.08-1.311.091.25
Dimensional Five-Year Diversified F/I0.271.644.494.095.78
Dimensional Global Bond Trust 4 0.292.575.215.30
Dimensional Two-Year Diversified F/I0.200.672.642.823.62
Fidelity Global Strategic Bond 4 1.013.481.93
Franklin Templeton Global Aggregate Bd W 4
Franklin Templeton Multisector Bond I 11 0.250.99-5.470.304.97
GAM Absolute Return Bond (AU) 12 1.913.681.831.20
Legg Mason Brandywine Glbl Opp Fix Inc A 15 0.935.530.284.7910.01
Legg Mason Brandywine Global Fixed Inc A 15 0.424.82-0.674.729.30
Legg Mason WA Glb Multi Str Bd A2.777.530.693.776.11
Macquarie Global Bond 13** -0.271.643.495.366.81
Macquarie Global Income Opportunities Fd 17 0.941.300.502.533.82
Mercer Global Credit Fund 2 1.183.844.335.558.20
Mercer Global Sovereign Bond Fund 16 -0.391.014.556.337.86
Nikko AM International Bond 16 -
Omega Global Corporate Bond 17 0.873.304.443.756.69
PIMCO EQT Wholesale Global Bond 90.482.393.535.097.33
PIMCO EQT Wholesale Global Credit B 20 0.772.704.175.117.16
PIMCO EQT Wholesale Diversified Fixed Interest 1 0.471.723.314.766.85
PIMCO EQT Wholesale Unconstrained Bond B 17 2.062.970.08
SSgA Global Broad Invest Grade Fixed Inc 140.372.354.815.216.96
SSgA Global Fixed Income 15 -0.081.905.395.114.62
T.Rowe Price Dynamic Global Bond Fund 17
Templeton Global Bond Plus W 16 -0.330.30-5.83-0.443.21
UBS Global Credit Fund 4 1.664.633.234.977.23
UBS International Bond 4 0.492.784.665.296.76
Vanguard International Crdt Secs Idx Hdg 8 0.813.303.994.897.17
Vanguard International Fxd Intr Idx Hdg 10 -0.031.955.485.837.43
150% BB AusBond Composite Bond Index /50% BB AusBond Bank Bill Index
260% Barclays Global Aggregate - Corporate Index in $A (Hedged) and 40% Barclays Capital Global Aggregate ex Government ex Treasuries Index ($AUD hedged)
3BarCap Gl Aggregate TR ($AUD hedged)
4Barclays Capital Global Aggregate Bond Index ($AUD Hedged)
5Barclays Capital World Government Inflation-Linked Bond Index ($AUD hedged)
6Barclays Glb Agg Corp ($AUD hedged)
7Barclays Global Aggregate 500 Index ($AUD hedged)
8Barclays Global Aggregate Government-Related and Corporate ($AUD hedged)
9Barclays Global Aggregate Index ($AUD hedged)
10Barclays Global Treasury Index ($AUD hedged)
11Barclays Multiverse Index is the primary benchmark
12Cash Index: AFMA 3-month bank bill swap rate BBSW (Hurdle)
13Citigroup (Customised Benchmark) M1 Global ex-Australia hedged to Australian dollars Index
14Citigroup World Broad Investment Grade ex-Australia Index ($AUD hedged)
15Citigroup World Government Bond Index ex Australia ($AUD hedged)
16JP Morgan Global Government Bond Index ($AUD hedged)
17BB AusBond Australia Bank Bill Index
18Credit Suisse Leverage Loan Index ($AUD hedged)
19Consumer Price Index increases by at least 0.5%
20BB AusBond Composite Bond Index
21Merrill Lynch High Yield Cash Pay Constrained ($AUD hedged)

*End of April 2016. Returns in AUD after fees.
Underlined funds can be applied for and redeemed via the ASX mFund platform