Conditions facing global fund managers in June remained favourable. Long-term US Treasury bond yields finished moderately lower for a second consecutive month, yields in major euro-zone countries with the exception of France decreased while UK yields also moved lower. The Aussie dollar was weaker against the US dollar but stronger against other major currencies. 28 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 June was 0.60% (May: 0.82%) while the median return over the 12 months including June was 4.30% (May: 2.96%). The Barclays Global Aggregate Bond Index, a widely-used index in this sector, returned 0.72% over the month and 2.04% over the rolling year (when hedged into Australian dollars).
In US markets, the 2-year Treasury yield lost 11bps to 4.76%, the 10-year yield shed 10bps to 4.40% while the 30-year yield finished 9bps lower at 4.56%. BBB corporate spreads widened moderately.
In other major bond markets, the German 10-year bund yield lost 17bps to 2.50% while the French 10-year OAT yield added 12bbps to 3.25%. The 10-year UK gilt yield finished the month 15bps lower at 4.27%.
The best performing global fund for the month in the YieldReport June survey was the Bentham Professional Global Income Fund which produced a return of 0.96%. The second-highest return for the month, 0.87%, was produced by the Bentham Wholesale High Yield Fund, the Mercer Global Credit Fund and the UBS Global Credit Fund.
In terms of fund performance for the twelve months to the end of June, the Bentham Professional Syndicated Loan Fund retained the title as highest performing fund. It produced 12-month return of 9.76% while the Bentham Wholesale High Yield Fund retained second place with a return of 9.51%. The Bentham Professional Global Income Fund took third position after it returned 9.24%.
| FUND NAME | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| Advance International Fixed Interest Multi-Blend | 0.60 | -0.54 | 3.35 | -3.13 | -1.12 | |
| ANZ-CFS Global Credit Income EF | -0.17 | 0.52 | 5.18 | 1.53 | 1.13 | |
| Ardea Real Outcome Fund | 0.09 | 0.51 | 0.26 | 0.93 | 2.30 | |
| Bentham Professional Global Income | mFund | 0.96 | -0.45 | 9.24 | 3.21 | 3.99 |
| Bentham Wholesale High Yield | mFund | 0.87 | 1.09 | 9.51 | 1.65 | 2.71 |
| Bentham Syndicated Loan ASX Class | mFund | 0.25 | 1.44 | 9.76 | 4.47 | 3.81 |
| Kapstream Wholesale Absolute Return Income | mFund | 0.65 | 1.53 | 6.29 | 2.56 | 2.01 |
| CFS Wholesale Global Corporate Bond | 0.65 | -3.33 | 0.81 | -4.49 | -0.65 | |
| Dimensional Five-Year Diversified Fixed Interest | 0.32 | 1.08 | 4.52 | -0.88 | -0.20 | |
| Dimensional Global Bond Trust | 0.65 | -0.55 | 4.60 | -3.44 | -0.94 | |
| Dimensional Two-Year Diversified Fixed Interest | 0.32 | 1.07 | 4.68 | 0.65 | 0.75 | |
| Franklin Templeton Global Aggregate Bond Fund (W Class) | 0.55 | -0.53 | 1.81 | -2.75 | -0.83 | |
| Invesco Wholesale Senior Secured Income | mFund | 0.52 | 1.02 | 8.20 | 3.95 | 3.94 |
| Legg Mason Brandywine Global Opp Fixed Income A | mFund | 0.15 | -1.82 | -2.57 | -4.22 | -0.80 |
| Legg Mason Western Asset Global Bond Fund | 0.67 | -0.99 | 1.65 | -4.06 | -0.89 | |
| Legg Mason Western Asset Macro Opportunities Bond Fund | 0.02 | -4.20 | -0.72 | -19.75 | -11.69 | |
| Macquarie Global Income Opportunities Fund | 0.38 | 0.23 | 5.85 | 0.87 | 1.53 | |
| Macquarie Core Australian Fixed Interest Plus Fund | 0.71 | -1.13 | 4.55 | -3.06 | -0.92 | |
| Mercer Global Credit Fund | 0.87 | 0.10 | 4.18 | -3.59 | -0.56 | |
| Mercer Global Sovereign Bond Fund | 0.52 | -0.35 | 1.17 | -3.06 | -0.80 | |
| PIMCO Global Bond (Wholesale) | mFund | 0.56 | 0.09 | 4.50 | -2.38 | -0.11 |
| PIMCO Global Credi (Wholesale) | mFund | 0.69 | 0.20 | 3.68 | -3.00 | -0.48 |
| PIMCO Diversified Fixed Interest Wholesale | mFund | 0.63 | -0.34 | 4.41 | -2.21 | -0.32 |
| PIMCO Unconstrained Bond (Wholesale) | mFund | 0.19 | 0.65 | 5.72 | -1.02 | 0.65 |
| State Street SSgA Global Fixed Income Trust | 0.81 | -0.64 | 1.09 | -4.01 | -1.63 | |
| T.Rowe Price Dynamic Global Bond Fund | -0.52 | 0.83 | 0.15 | -0.60 | 1.38 | |
| UBS Global Credit Fund | 0.87 | -0.02 | 4.60 | -3.85 | -0.42 | |
| UBS International Bond | 0.86 | -0.21 | 2.63 | -3.10 | -0.83 | |
| Vanguard International Credit Securities Index (Hedged) | 0.59 | -0.15 | 3.76 | -3.50 | -0.82 | |
| Vanguard International Fixed Interest Index (Hedged) | 0.76 | -0.76 | 0.94 | -3.57 | -1.50 |
*End of June 2024. Return in AUD after fees