Global Bond Funds November 2015


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

Last month readers may recall YieldReport’s comments on the difficulty comparing performances in the global bond fund space. With this in mind, perhaps a way to deal with this is to simply compare a fund’s performance with the average of the funds in the survey. The average 1 month performance over the month was 0.20% and the average return over the last 12 months was 2.49%.

Templeton’s Global Bond Plus was the best performer for the month of the forty-one funds in YieldReport’s November survey and follows on from being ranked first in October. The fund returned 2.22% for the month but it is hard to ignore the disappointing 12 month performance of -2.52%. This fund uses a high alpha-seeking global strategy that focuses on a research-driven, value-based approach seeking to capitalise on global interest rates, currency and sovereign credit trends. Primary focus includes government and government-related issuance with a 25% limit on below investment-grade exposure.

The best performer over the 12 month to the end of November was the T Rowe-Price Dynamic Global Bond Fund with a return of 7.64% for the period. It returned 0.70% for November which is also well above the average. Arif Hussain, the portfolio manager said, “The Fund generated positive returns for the month, led by sector allocation and security selection. A short duration position in the U.S. also contributed strongly, as did our short euro position against the U.S. dollar.” Longer term performance figures are not available as the fund’s inception date was February 2014.

GLOBAL BOND FUNDS1m (%)3m (%)1y (%)3y (%)5y (%)
Advance Int Fix Intr Multi-Blend
AMP Capital FD Intl Bond A 3-0.030.571.714.025.62
AMP Capital International Bond 40.010.702.254.576.17
ANZ OA IP-CFS Global Credit Income EF 17-0.15-0.31-
Bentham W/S Global Income 10.30-0.732.187.128.52
Bentham W/S High Yield 21 -2.00-0.821.006.539.45
Bentham Syndicated Loan ASX Class 17 -0.53-1.182.426.178.12
Kapstream WS Absolute Return Income0.140.562.803.914.93
BlackRock Monthly Income C 17 0.500.301.396.287.04
BlackRock WS International Bond 7 0.251.503.905.707.05
BT Global Fixed Interest WS 16 0.010.684.065.246.22
BT Institutional Enhanced Gbl Fixed Int 16 0.030.734.255.446.87
CFS Wholesale Global Bond 15 0.071.413.984.836.06
CFS Wholesale Global Corporate Bond40.120.852.245.408.28
DDH Global Fixed Interest Alpha 17 0.72-0.100.892.492.08
Dimensional Five-Year Diversified F/I0.141.113.723.815.58
Dimensional Global Bond Trust 4 0.271.694.174.760.00
Dimensional Two-Year Diversified F/I0.090.572.582.903.82
Fidelity Global Strategic Bond 4 0.321.303.07
Franklin Templeton Global Aggregate Bd W 4 -
Franklin Templeton Multisector Bond I 11 1.773.12-2.724.048.01
GAM Absolute Return Bond (AU) 12 -0.28-0.02-0.371.814.71
Legg Mason Brandywine Glbl Opp Fix Inc A 15 0.962.25-0.726.480.00
Legg Mason Brandywine Global Fixed Inc A 15 0.661.53-0.066.328.92
Legg Mason WA Glb Multi Str Bd A-0.81-0.49-0.423.436.10
Macquarie Global Bond 13** -
Macquarie Global Income Opportunities Fd 17 -0.27-0.391.013.394.38
Mercer Global Credit Fund 2 0.381.333.195.428.10
Mercer Global Sovereign Bond Fund 16 0.491.675.896.407.54
Nikko AM International Bond 16
Omega Global Corporate Bond 17
PIMCO EQT Wholesale Global Bond 90.351.373.905.167.48
PIMCO EQT Wholesale Global Credit B 20 0.271.444.045.207.09
SSgA Global Broad Invest Grade Fixed Inc
SSgA Global Fixed Income 15 0.191.542.134.734.06
T.Rowe Price Dynamic Global Bond Fund 17 0.702.017.64
Templeton Global Bond Plus W 16 2.223.84-2.522.555.74
UBS Global Credit Fund 4
UBS International Bond 4 0.151.503.654.806.50
Vanguard International Crdt Secs Idx Hdg 8
Vanguard International Fxd Intr Idx Hdg 10 0.291.674.555.426.91

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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 November 2015. Returns in AUD after fees.
Underlined funds can be applied for and redeemed via the ASX mFund platform