Global Bond Funds October 2015

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

The global bond fund category is very difficult to compare performances as there are a huge number of different benchmarks that fund managers manage to. In an Insight this month, YieldReport looks at the different benchmarks and why it is important to understand which benchmark is being used when comparing fund performance. That said, the standout performer in October was the Franklin Templeton Multi-sector bond fund with 3.45%. The same fund though has returned -4.55% over 12 months. The fund is a high alpha-seeking, multi-sector global fixed income fund that can invest across the entire global fixed income opportunity set, including government, securitised and corporate sectors. Below investment-grade exposure is limited to no more than 50% of portfolio net assets at the time of investment. The fund is hedged into AUD against the movements of the USD.

Templeton’s Global Bond Plus was the second best performer at 3.50% in October. 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. Over 12 months this fund has returned -4.72%.

In other global bond funds YieldReport saw T Rowe-Price’s Dynamic Global Bond Fund return 1.79% in October and a respectable 6.68% for 12 months and Bentham’s Wholesale High Yield fund return 2.63% in October and 2.99% for 12 months.

Global Bond Funds1m (%)3m (%)1y (%)3y (%)5y (%)
Advance Int Fix Intr Multi-Blend 40.94-0.012.113.655.29
AMP Capital FD Intl Bond A 30.410.122.834.275.48
AMP Capital International Bond 40.460.243.384.826.02
ANZ OA IP-CFS Global Credit Income EF 170.81-0.91-0.193.294.15
Bentham W/S Global Income 10.19-1.692.057.578.76
Bentham W/S High Yield 212.63-0.422.997.549.97
Bentham Syndicated Loan ASX Class 170.21-1.403.426.668.38
Kapstream WS Absolute Return Income10.310.393.074.064.97
BlackRock Monthly Income C 170.45-0.840.986.436.60
BlackRock WS International Bond 70.861.114.705.886.82
BT Global Fixed Interest WS 16-0.471.346.135.546.05
BT Institutional Enhanced Gbl Fixed Int 16-0.451.406.335.736.65
CFS Wholesale Global Bond 150.591.145.095.175.84
CFS Wholesale Global Corporate Bond40.88-0.012.805.598.12
DDH Global Fixed Interest Alpha 170.65-1.45-2.182.551.98
Dimensional Five-Year Diversified F/I0.071.114.343.955.45
Dimensional Global Bond Trust 40.331.085.054.950.00
Dimensional Two-Year Diversified F/I0.150.652.672.973.86
Fidelity Global Strategic Bond 41.63-0.073.37
Franklin Templeton Global Aggregate Bd W 40.271.627.540.000.00
Franklin Templeton Multisector Bond I 113.45-2.41-4.774.107.30
GAM Absolute Return Bond (AU) 121.20-0.62-0.862.054.64
Legg Mason Brandywine Glbl Opp Fix Inc A 152.09-2.10-0.116.790.00
Legg Mason Brandywine Global Fixed Inc A 151.77-2.210.796.659.04
Legg Mason WA Glb Multi Str Bd A2.49-1.850.513.905.95
Macquarie Global Bond 13**0.170.864.875.266.27
Macquarie Global Income Opportunities Fd 170.76-0.241.303.584.59
Mercer Global Credit Fund 20.700.543.655.507.96
Mercer Global Sovereign Bond Fund 160.071.017.096.657.26
Nikko AM International Bond 160.091.305.445.836.12
Omega Global Corporate Bond 170.730.483.233.756.10
PIMCO EQT Wholesale Global Bond 90.960.504.785.437.18
PIMCO EQT Wholesale Global Credit 201.120.784.615.236.87
SSgA Global Broad Invest Grade Fixed Inc 140.450.944.585.036.34
SSgA Global Fixed Income 150.431.303.325.003.80
T. Rowe Price Dynamic Global Bond1.791.916.68
Templeton Global Bond Plus W 163.50-2.67-4.722.325.12
UBS Global Credit 40.850.292.994.886.91
UBS International Bond 40.550.944.644.976.30
Vanguard International Crdt Secs Idx Hdg 80.990.803.904.806.73
Vanguard International Fxd Intr Idx Hdg 100.261.345.635.666.62
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 BENCHMARKS
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 October 2015. Returns in AUD after fees.
Underlined funds can be applied for and redeemed via the ASX mFund platform

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