Conditions facing global fund managers in April were not much better than they were for managers of domestic fixed interest; that is, grim. Long-term US Treasury bond yields finished the month considerably higher, as did yields in major euro-zone countries and the UK. The Aussie dollar was weaker against the US dollar but stronger other major currencies. Seven of the 30 funds in the YieldReport survey finished the month with a positive return.
The median 1 month performance in the YieldReport survey of global bond funds in April was -1.77% (March: 0.89%) while the median return over the 12 months including April was -0.28% (March: 3.52%). The Barclays Global Aggregate Bond Index, a widely-used index in this sector, returned -1.95% over the month and 0.28% over the rolling year (when hedged into Australian dollars).
In US markets, the 2-year Treasury yield gained 42bps at 5.04%, the 10-year yield added 48bps to 4.68% while the 30-year yield finished 44bps higher at 4.78%. BBB corporate spreads tightened slightly.
In other major bond markets, the German 10-year bund yield gained 25bps to 2.55% while the French 10-year OAT yield added 23bbps to 3.03%. The 10-year UK gilt yield finished the month 38bps higher at 4.41%.
The best performing global fund for the month in the YieldReport April survey was the T. Rowe Price Dynamic Global Bond Fund which produced a return of 1.42% for the month. The second-highest return for the month, 1.34%, was produced by the Ardea Real Outcome Fund while the Dimensional Five-Year Diversified Fixed Interest Fund was next with a return of 0.38%.
In terms of fund performance for the twelve months to the end of April, the Bentham Professional Syndicated Loan Fund retained the title as highest performing fund. It produced 12-month return of 10.20% while the Invesco Wholesale Senior Secured Income Fund moved up into second place with a return of 9.43%. The Bentham Wholesale High Yield Fund slipped back to third position after it returned 8.38%.
| GLOBAL BOND FUNDS | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| Advance International Fixed Interest Multi-Blend | -1.97 | -2.11 | 0.87 | -3.43 | -0.93 | |
| ANZ-CFS Global Credit Income EF | 0.32 | 1.18 | 5.93 | 1.64 | 1.06 | |
| Ardea Real Outcome Fund | 1.34 | 0.91 | 1.07 | 1.07 | 2.88 | |
| Bentham Professional Global Income | mFund | -1.91 | -0.55 | 3.56 | 2.74 | 3.55 |
| Bentham Wholesale High Yield | mFund | -0.93 | 0.37 | 8.38 | 1.40 | 2.45 |
| Bentham Syndicated Loan ASX Class | mFund | 0.19 | 1.38 | 10.20 | 4.33 | 3.48 |
| Kapstream Wholesale Absolute Return Income | mFund | 0.20 | 0.77 | 5.29 | 2.14 | 1.89 |
| CFS Wholesale Global Corporate Bond | -2.03 | -2.22 | 1.13 | -3.53 | 0.21 | |
| Dimensional Five-Year Diversified Fixed Interest | 0.38 | 1.05 | 3.65 | -1.10 | -0.13 | |
| Dimensional Global Bond Trust | -1.91 | -1.81 | 1.94 | -3.41 | -0.62 | |
| Dimensional Two-Year Diversified Fixed Interest | 0.37 | 1.06 | 4.03 | 0.42 | 0.72 | |
| Franklin Templeton Global Aggregate Bond Fund (W Class) | -2.06 | -2.25 | -0.26 | -2.96 | -0.48 | |
| Invesco Wholesale Senior Secured Income | mFund | -0.03 | 1.31 | 9.43 | 4.12 | 3.65 |
| Legg Mason Brandywine Global Opp Fixed Income A | mFund | -3.50 | -5.02 | -3.87 | -4.19 | -0.54 |
| Legg Mason Western Asset Global Bond Fund | -2.64 | -3.48 | -1.48 | -4.23 | -0.70 | |
| Legg Mason Western Asset Macro Opportunities Bond Fund | -6.54 | -7.75 | -4.74 | -6.50 | -2.28 | |
| Macquarie Global Income Opportunities Fund | -0.93 | -0.08 | 3.51 | 0.67 | 1.54 | |
| Macquarie Core Australian Fixed Interest Plus Fund | -2.67 | -1.85 | -1.42 | -3.11 | -0.51 | |
| Mercer Global Credit Fund | -1.85 | -1.58 | 0.98 | -3.74 | -0.44 | |
| Mercer Global Sovereign Bond Fund | -1.60 | -1.68 | -1.99 | -3.20 | -0.50 | |
| PIMCO Global Bond (Wholesale) | mFund | -1.45 | -0.90 | 2.26 | -2.74 | 0.06 |
| PIMCO Global Credi (Wholesale) | mFund | -1.94 | -1.96 | 0.85 | -3.38 | -0.46 |
| PIMCO Diversified Fixed Interest Wholesale | mFund | -1.72 | -0.93 | 1.13 | -2.45 | -0.10 |
| PIMCO Unconstrained Bond (Wholesale) | mFund | -0.53 | 0.26 | 4.76 | -1.41 | 0.55 |
| State Street SSgA Global Fixed Income Trust | -1.85 | -1.96 | -1.02 | -4.19 | -1.29 | |
| T.Rowe Price Dynamic Global Bond Fund | 1.42 | 1.53 | -3.40 | -0.83 | 1.80 | |
| UBS Global Credit Fund | -2.18 | -2.14 | 0.98 | -4.00 | -0.32 | |
| UBS International Bond | -1.99 | -2.05 | -0.32 | -3.41 | -0.72 | |
| Vanguard International Credit Securities Index (Hedged) | -1.77 | -1.89 | 1.06 | -3.60 | -0.59 | |
| Vanguard International Fixed Interest Index (Hedged) | -1.77 | -1.92 | -0.90 | -3.69 | -1.18 |
*End of April 2024. Return in AUD after fees