Global Bonds

Introduction to Global Bonds

Global bond funds will invest in government and corporate bonds from around the world. In this, managers will often be expressing their views on the relative performance of different economies – will the UK perform better than the US, for example?Global bond funds may focus exclusively on emerging market bond funds, high yield or be 'absolute return' in nature, focusing on delivering a return in all market conditions.

Global bond funds can take positions on the likely movements of interest rates, currencies and credit and as such, are among the most flexible bond funds available. In theory, they can perform in all market conditions, but the difference between the top and bottom-performing funds is large and manager skill is extremely important. If a manager gets their macro-economic positioning right, they are likely to perform well.

Global bond funds can act as a diversifier against a UK-focused bond fund. They may also offer some protection in a climate of rising interest rates, when other bond portfolios may perform badly. They can also be an important source of yield in a portfolio.

The tax treatment of investments is subject to tax law and HMRC practice which are subject to change. The value of investments may be affected by exchange rate movements where the underlying investments are not denominated in Pounds Sterling.

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Global High Income Z Gr Acc13.8713.1441.0497.025.80Buy
AXA Global High Income Z Acc12.818.9432.0497.025.80Buy
AXA Sterling Corporate Bond Z Gr Acc11.7921.7942.9450.033.50Buy
AXA Sterling Corporate Bond Z Acc11.3519.5737.9750.033.50Buy
AXA Sterling Index Linked Bond Z Acc26.2246.9256.83298.26-Buy
AXA Sterling Index Linked Bond Z Gr Acc26.2747.0457.49298.26-Buy
AXA US Short Duration High Yield Bond Z Gr Acc4.277.4319.25951.403.90Buy
AXA US Short Duration High Yield Bond Z Acc3.704.9914.42951.403.90Buy
AXA US Short Duration High Yield Bond ZI Gr Acc4.588.2920.90951.404.20Buy
AXA US Short Duration High Yield Bond ZI Acc4.065.6815.90951.404.20Buy
Aberdeen Absolute Return Bond I Acc2.89-2.49-156.321.80Buy
Aberdeen Absolute Return Bond I Gr Acc2.86-1.776.86156.321.80Buy
Aberdeen Corporate Bond I Gr Acc10.7422.0847.941,735.642.70Buy
Aberdeen Corporate Bond I Acc10.4819.9042.691,735.642.70Buy
Aberdeen Emerging Markets Bond I Acc11.2611.4626.3285.066.40Buy
Aberdeen Euro Corporate Bond I Acc14.7012.9031.7526.711.40Buy
Aberdeen Global High Yield Bond I Acc10.694.3729.68680.205.20Buy
Aberdeen Global Select Global Credit Bond R2 GBP4.929.2326.8446.532.66Buy
Aberdeen Sterling Bond I Acc7.2718.61-136.581.80Buy
Aberdeen Sterling Index-Linked Bond I Acc25.6442.4549.49123.32-Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
DB X-Trackers II Iboxx Global Inflation-Linked UCITS ETF 2C USD3.068.0515.13-USDFixed Int - GlobalBuy
DB X-Trackers II Iboxx Global Inflation-Linked UCITS ETF 3D GBP2.607.6915.5119.75GBPFixed Int - GlobalBuy
Lyxor UCITS ETF Iboxx $ Liquid Emerging Markets Sovereigns USD7.246.8511.0423.62USDFixed Int - Emerging MarketsBuy
Pimco Emerging Markets Advantage Local Bond Index Source UCITS ETF Inc USD9.008.41-9.53-USDFixed Int - Emerging MarketsBuy
SPDR Barclays EM Inflation Linked Local Bond UCITS GBP3.7119.5913.73-GBPFixed Int - Emerging MarketsBuy
SPDR Barclays 0-3 Year US Corporate Bond UCITS ETF GBP-4.6712.6031.58-GBPFixed Int - USD Short/ Medium MaturityBuy
SPDR Barclays Emerging Markets Local Bond UCITS ETF GBP3.9221.2515.6816.76GBPFixed Int - Emerging MarketsBuy
SPDR BofA Merrill Lynch Emerging Markets Corporate Bond UCITS ETF GBP-0.4518.4634.27-GBPFixed Int - Emerging MarketsBuy
SPDR Barclays 0-5 Year US High Yield Bond UCITS ETF GBP-0.1221.1027.95-GBPFixed Int - USD High YieldBuy
iShares $ Emerging Markets Corporate Bond UCITS ETF GBP0.1822.0246.6252.62GBPFixed Int - Emerging MarketsBuy
iShares $ High Yield Corporate Bond UCITS ETF GBP0.6226.2742.1460.77GBPFixed Int - USD High YieldBuy
iShares $ Ultrashort Bond UCITS ETF GBP-4.8313.3532.16-GBPFixed Int - USD Short/ Medium MaturityBuy
iShares $ Corporate Bond UCITS ETF USD4.254.2412.0825.88USDFixed Int - USD Corporate BondBuy
iShares $ Corporate Bond Interest Rate Hedged UCITS ETF GBP-2.9718.3434.04-GBPFixed Int - USD Corporate BondBuy
iShares $ Short Duration Corporate Bond UCITS ETF GBP-4.0914.1335.25-GBPFixed Int - USD Short/ Medium MaturityBuy
iShares $ Short Duration High Yield Corporate Bond UCITS ETF GBP-0.5323.4540.62-GBPFixed Int - USD Short/ Medium MaturityBuy
iShares Core £ Corporate Bond UCITS ETF GBP6.0411.0725.5243.81GBPFixed Int - GBP Corporate BondBuy
iShares Emerging Markets Local Government Bond UCITS ETF GBP4.2522.4016.1611.82GBPFixed Int - Emerging MarketsBuy
iShares Euro Covered Bond UCITS ETF GBP0.2511.9812.1828.38GBPFixed Int - EUR Investment GradeBuy
iShares Euro Corporate Bond 1-5yr UCITS ETF GBP0.8813.5410.5223.30GBPFixed Int - EUR Corporate BondBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Downing Four VCT PLC DP67 0.1P-0.615.76-20.6863.90-21.758.00VCT GeneralistBuy
Downing Four VCT PLC DP2011 Low Carbon 0.1P39.448.321.1541.70-58.03-VCT GeneralistBuy
Downing Four VCT PLC DP2011 General A 0.1P99.93100.07130.8530.30-50.48-VCT GeneralistBuy
Downing Four VCT PLC DP2011 General 0.1P-16.49-27.58-38.3625.00-26.0054.05VCT GeneralistBuy
Downing Four VCT PLC DP2011 Structured A 0.1P99.93100.07130.8531.80-52.81-VCT GeneralistBuy
Downing Four VCT PLC DP2011 Structured 0.1P35.4414.161.0914.90-29.1994.79VCT GeneralistBuy
Downing Four VCT PLC B--24.78-16.7820.00-37.48-VCT GeneralistBuy
Downing Four VCT PLC C6,156.254,905.004,905.000.104,905.00-VCT GeneralistBuy
Downing Four VCT PLC D-5.56-2.55-11.9575.50-15.237.81VCT GeneralistBuy

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