Conditions facing global fund managers in November improved considerably. Long-term US Treasury bond yields finished modestly lower while yields in major European countries also fell. The Aussie dollar was weaker against the US dollar and yen but stronger against the euro and sterling. All 26 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 November was 1.18% (October: -1.86%) while the median return over the 12 months including November was 6.58% (October: 8.01%). The Barclays Global Aggregate Bond Index, a widely-used index in this sector, returned 1.24% over the month and 6.06% over the rolling year (when hedged into Australian dollars).
In US markets, the 2-year Treasury yield lost 3bps to 4.15% while 10-year and 30-year yields both finished 12bps lower at 4.17% and 4.36% respectively. BBB corporate spreads tightened modestly again.
In other major bond markets, the German 10-year bund yield lost 30bps to 2.09% while the French 10-year OAT yield finished 24bps lower at 2.90%. The 10-year UK gilt yield finished the month 16bps lower at 4.33%.
The best performing global fund for the month in the YieldReport November survey was the PIMCO Global Credit (Wholesale) Fund which produced a return of 1.60%. The second-highest return for the month, 1.55%, was produced by the Western Asset Global Bond Fund. The PIMCO Global Bond (Wholesale) Fund ranked third with a return of 1.53%.
In terms of fund performance for the twelve months to the end of November, the Bentham Wholesale High Yield Fund retained the title as highest performing fund. The Bentham fund produced a 12-month return of 10.82% while the Bentham Professional Global Income Fund was next with a return of 8.98%. The PIMCO Global Credit (Wholesale) took third position after it returned 7.95%.
| FUND NAME | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| Advance International Fixed Interest Multi-Blend | 1.25 | 0.28 | 6.20 | -2.03 | -0.81 | |
| ANZ-CFS Global Credit Income EF | 0.54 | 0.79 | 5.53 | 2.77 | 1.53 | |
| Ardea Real Outcome Fund | 0.25 | 1.05 | -0.89 | 1.73 | 1.97 | |
| Bentham Professional Global Income | mFund | 1.25 | -0.34 | 8.98 | 4.15 | 4.50 |
| Bentham Wholesale High Yield | mFund | 1.18 | 1.10 | 10.82 | 3.12 | 3.11 |
| Kapstream Wholesale Absolute Return Income | mFund | 0.48 | 1.69 | 7.00 | 3.74 | 2.51 |
| Dimensional Five-Year Diversified Fixed Interest | 0.34 | 1.08 | 4.53 | 0.24 | 0.10 | |
| Dimensional Global Bond Trust | 1.35 | 0.75 | 6.70 | -2.12 | -0.61 | |
| Dimensional Two-Year Diversified Fixed Interest | 0.35 | 1.12 | 4.60 | 1.61 | 1.04 | |
| Franklin Templeton Global Aggregate Bond Fund (W Class) | 1.18 | 0.54 | 5.89 | -1.26 | -0.56 | |
| Invesco Wholesale Senior Secured Income | mFund | 0.59 | 1.62 | 7.07 | 4.29 | 4.50 |
| Legg Mason Brandywine Global Opp Fixed Income A | mFund | 0.89 | -1.55 | 2.73 | -2.78 | -0.47 |
| Macquarie Global Income Opportunities Fund | 1.55 | -0.02 | 4.59 | -2.88 | -0.68 | |
| Macquarie Core Australian Fixed Interest Plus Fund | 0.83 | 1.09 | 7.08 | 2.03 | 1.87 | |
| Mercer Global Credit Fund | 1.39 | -0.26 | 7.39 | -1.68 | -0.79 | |
| Mercer Global Sovereign Bond Fund | 1.30 | 0.80 | 7.58 | -2.28 | -0.30 | |
| PIMCO Global Bond (Wholesale) | mFund | 0.74 | -0.67 | 3.40 | -2.53 | -1.01 |
| PIMCO Global Credi (Wholesale) | mFund | 1.53 | 0.86 | 6.92 | -1.39 | 0.23 |
| PIMCO Diversified Fixed Interest Wholesale | mFund | 1.60 | 1.12 | 7.95 | -1.55 | -0.01 |
| PIMCO Unconstrained Bond (Wholesale) | mFund | 1.39 | 0.29 | 6.45 | -1.02 | -0.13 |
| State Street SSgA Global Fixed Income Trust | 1.17 | 0.56 | 5.01 | -3.28 | -1.32 | |
| T.Rowe Price Dynamic Global Bond Fund | 0.05 | 1.53 | 3.36 | 0.89 | 2.41 | |
| UBS Global Credit Fund | 1.18 | 0.59 | 7.75 | -2.50 | -0.23 | |
| UBS International Bond | 1.39 | 0.79 | 6.72 | -1.88 | -0.43 | |
| Vanguard International Credit Securities Index (Hedged) | 1.31 | 1.02 | 7.04 | -2.23 | -0.49 | |
| Vanguard International Fixed Interest Index (Hedged) | 1.10 | 0.59 | 4.71 | -2.76 | -1.19 |
*End of November 2024. Return in AUD after fees