The 10-year Australian Treasury bond yield trended downwards from the beginning of June through to just after the middle of the month. It then reversed course and trended upwards until the end of June. By this point, the 3-year ACGB yield had returned to its starting point at 4.05% while 10-year and 20-year yields both finished 10bps lower at 4.32% and 4.61% respectively.
As a result, conditions facing fund managers were quite conducive to positive returns. The Bloomberg Ausbond Semi-Government Index was the best performer after it returned 1.14% for the month. The Composite Index, representing a mix of federal, state and corporate bonds, produced the second-highest return of 0.77%, while the Treasury Index, representing Commonwealth bonds, was next with a return of 0.69%. The Corporate Bond Index returned 0.44% while the FRN Index returned 0.41%.
All 32 funds in the YieldReport survey for this segment produced positive results and the month’s median return was 0.74%.
The Henderson Australian Fixed Interest (Institutional) Fund produced a return of 0.94%, making it the highest returning fund for the month. The UBS Australian Bond Fund was next with a return of 0.92% while the CFS Wholesale Australian Bond Fund was third with a return of 0.88%.
On a 12-month basis, Realm’s High Income Fund retained the title of highest performing fund in this segment. The fund returned 10.72% while the next-highest return came from Realm’s Strategic Income Fund with a return of 10.66%. The Alexander Credit Opportunities Fund retained third place after it produced a 12-month return of 8.88%.
| FUND NAME | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| Advance Aus Fixed Intr Multi-Blend | 0.82 | -0.97 | 3.47 | -2.87 | -1.29 | |
| AMP Capital Corporate Bond | ACA02 | 0.42 | 0.89 | 5.19 | 2.17 | 2.34 |
| Alexander Credit Opportunities Fund | 0.66 | 2.07 | 8.88 | 6.67 | 5.75 | |
| AMP Flex Lifetime S2-AMP Australian Bond | 0.83 | -0.91 | 3.70 | -2.76 | -1.13 | |
| AMP Generations BlackRock Aust Fixed Interest Index | 0.73 | -1.01 | 3.08 | -2.84 | -1.52 | |
| Altius Sustainable Bond Fund | 0.78 | 0.19 | 4.62 | 0.73 | 0.62 | |
| Artesian Corporate Bond Fund | 0.46 | 1.47 | 8.06 | 3.06 | 2.95 | |
| Pendal Enhanced Credit (Wholesale) | 0.38 | 0.18 | 6.17 | -0.06 | 1.05 | |
| Pendal Fixed Interest (Wholesale) | 0.69 | -1.00 | 3.64 | -2.12 | -0.57 | |
| Pendal Government Bond | 0.77 | -1.26 | 3.35 | -2.25 | -0.68 | |
| CFS Aberdeen Australian Fixed Interest | 0.70 | -0.87 | 4.09 | -2.28 | -0.97 | |
| CFS Wholesale Australian Bond | 0.88 | -0.48 | 4.14 | -1.99 | -0.41 | |
| DDH Fixed Interest | 0.80 | -0.78 | 4.06 | -2.14 | -0.50 | |
| Spectrum Strategic Income | SPE01 | 0.45 | 1.45 | 6.60 | 3.17 | 2.74 |
| Jamieson Coote Bonds Active | 0.68 | -1.09 | 2.71 | -2.95 | -1.28 | |
| Legg Mason Western Asset Australian Bond Trust | LMA04 | 0.83 | -0.77 | 4.32 | -1.97 | -0.42 |
| Macquarie Australian Fixed Interest | 0.87 | -0.74 | 4.28 | -1.79 | -0.31 | |
| Mercer Australian Sovereign Bond Fund | 0.72 | -1.01 | 2.89 | -2.74 | -1.23 | |
| MLC Wholesale Horizon 1 Bond Portfolio | 0.46 | 0.96 | 6.54 | 2.03 | 1.67 | |
| Nikko AM Australian Bond | 0.68 | -1.05 | 4.17 | -1.99 | -0.44 | |
| Henderson Australian Fixed Interest (Inst) | 0.94 | -0.98 | 4.57 | -2.06 | -0.12 | |
| Henderson Tactical Income | 0.55 | 0.44 | 5.89 | 2.24 | 2.36 | |
| Perpetual WFIA-Schroder Fixed Income | 0.77 | -0.63 | 4.54 | -2.61 | -0.77 | |
| Perpetual WFIA-Vanguard Aust Fixed Interest Index | 0.73 | -1.00 | 3.19 | -2.41 | -1.23 | |
| PIMCO Australian Bond (Wholesale) | PMF04 | 0.68 | -0.76 | 4.35 | -2.03 | -0.53 |
| PIMCO Australian Focus (Wholesale) | PMF05 | 0.74 | 0.66 | 5.49 | 0.11 | 0.71 |
| Realm High Income (Wholesale) | 0.50 | 2.00 | 10.72 | 5.23 | 4.88 | |
| Realm Strategic Income - Enduring Units | 0.80 | 2.46 | 10.66 | 8.07 | n/a | |
| SSgA Australian Fixed Income | 0.76 | -0.86 | 3.68 | -2.16 | -0.73 | |
| UBS Australian Bond Fund | 0.92 | -1.29 | 4.64 | -1.98 | -0.61 | |
| Vanguard Australian Fixed Interest Index | UAM04 | 0.76 | -0.93 | 3.43 | -2.24 | -0.80 |
| Vanguard Australian Govt Bond Index | 0.82 | -1.13 | 3.03 | -2.69 | -1.13 | |
| Bloomberg AusBond Composite 0+YR AUD | 0.77 | -0.84 | 3.68 | -2.06 | -0.60 |
*End of June 2024. Return in AUD after fees