The 10-year Australian Treasury bond yield trended higher at a gentle rate for the first half of November before reversing course and trending lower during the second half. By the end of the month, the 3-year ACGB yield had lost 10bps to 3.91% while 10-year and 20-year yields both finished 17bps lower at 4.35% and 4.68% respectively.
As a result, conditions facing fund managers in November were much improved on those of October. The Bloomberg Ausbond Semi-Government Index was the best performer after it returned 1.27% for the month. The Treasury Index, representing Commonwealth bonds, produced the second-highest return of 1.17% while the Composite Index, representing a mix of federal, state and corporate bonds, was next with a return of 1.14%. The Corporate Bond Index ranked fourth after it produced a return of 0.86% while the FRN Index returned 0.37%.
All 31 funds in the YieldReport survey for this segment produced positive results and the month’s median return was 1.15%.
The UBS Australian Bond Fund produced a return of 1.28%, making it the highest returning fund for the month. The Jamieson Coote Bonds Active Fund and the PIMCO Australian Bond (Wholesale) Fund tied for second after they both returned 1.26%.
On a 12-month basis, Realm’s High Income Fund retained the title of highest performing fund in this segment. The fund returned 11.06% while the next-highest return again came from Realm’s Strategic Income Fund with a return of 10.47%. The Alexander Credit Opportunities Fund retained third place after it produced a 12-month return of 9.20%.
| FUND NAME | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| Advance Aus Fixed Intr Multi-Blend | 1.17 | -0.62 | 4.95 | -1.67 | -1.24 | |
| Alexander Credit Opportunities | 0.59 | 2.07 | 9.20 | 7.28 | 6.11 | |
| AMP Flex Lifetime S2-AMP Australian Bond | 1.16 | -0.65 | 4.70 | -1.66 | -1.16 | |
| AMP Generations BlackRock Aust Fixed Interest Index | 1.07 | -0.62 | 4.55 | -1.65 | -1.49 | |
| Altius Sustainable Bond | 0.91 | 0.49 | 5.51 | 1.76 | 0.85 | |
| Artesian Corporate Bond | 0.56 | 1.71 | 7.73 | 4.27 | 3.27 | |
| Pendal Enhanced Credit (Wholesale) | 0.91 | 0.56 | 6.67 | 1.42 | 1.23 | |
| Pendal Fixed Interest (Wholesale) | 1.15 | -0.44 | 5.26 | -0.93 | -0.57 | |
| Pendal Government Bond | 1.23 | -0.72 | 4.93 | -1.21 | -0.73 | |
| CFS Aberdeen Australian Fixed Interest | 1.17 | -0.52 | 5.40 | -0.98 | -0.91 | |
| CFS Wholesale Australian Bond | 1.20 | -0.53 | 5.46 | -0.87 | -0.41 | |
| DDH Fixed Interest | 1.06 | -0.54 | 5.37 | -0.94 | -0.49 | |
| Spectrum Strategic Income | SPE01 | 0.46 | 1.55 | 6.66 | 3.98 | 3.02 |
| Jamieson Coote Bonds Active | 1.26 | -1.02 | 4.16 | -1.89 | -1.42 | |
| Legg Mason Western Asset Australian Bond | LMA04 | 1.23 | -0.38 | 5.99 | -0.69 | -0.40 |
| Macquarie Australian Fixed Interest | 1.19 | -0.48 | 5.46 | -0.60 | -0.35 | |
| Mercer Australian Sovereign Bond | 1.20 | -0.77 | 4.54 | -1.74 | -1.35 | |
| MLC Wholesale Horizon 1 Bond Portfolio | 0.62 | 1.31 | 7.36 | 3.28 | 2.18 | |
| Yarra Australian Bond | 1.16 | -0.55 | 5.78 | -0.64 | -0.39 | |
| Henderson Australian Fixed Interest (Inst) | 1.25 | -0.54 | 6.32 | -0.88 | -0.03 | |
| Henderson Tactical Income | 0.71 | 0.77 | 6.26 | 3.08 | 2.72 | |
| Perpetual WFIA-Schroder Fixed Income | 1.16 | -0.39 | 6.20 | -1.15 | -0.69 | |
| Perpetual WFIA-Vanguard Aust Fixed Interest Index | 1.09 | -0.52 | 4.77 | -1.29 | -1.16 | |
| PIMCO Australian Bond (Wholesale) | PMF04 | 1.26 | -0.29 | 6.01 | -0.64 | -0.48 |
| PIMCO Australian Focus (Wholesale) | PMF05 | 1.03 | 0.24 | 5.72 | 1.10 | 0.76 |
| Realm High Income (Wholesale) | 0.63 | 2.22 | 11.06 | 6.69 | 5.60 | |
| Realm Strategic Income - Enduring Units | 0.71 | 2.47 | 10.47 | 8.60 | n/a | |
| SSgA Australian Fixed Income | 1.15 | -0.49 | 5.17 | -1.02 | -0.74 | |
| UBS Australian Bond | 1.28 | -0.60 | 6.49 | -0.53 | -0.49 | |
| Vanguard Australian Fixed Interest Index | UAM04 | 1.11 | -0.51 | 5.02 | -1.10 | -0.81 |
| Vanguard Australian Govt Bond Index | 1.19 | -0.71 | 4.65 | -1.64 | -1.20 | |
| Bloomberg AusBond Composite 0+YR AUD | 1.14 | -0.46 | 5.16 | -0.93 | -0.61 |
*End of November 2024. Return in AUD after fees