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 Acc4.2415.1829.38118.334.80Buy
AXA Global High Income Z Acc4.2612.0522.44118.334.80Buy
AXA Sterling Corporate Bond Z Gr Acc3.5114.7030.8460.992.90Buy
AXA Sterling Corporate Bond Z Acc3.5213.2327.1960.992.90Buy
AXA Sterling Index Linked Bond Z Acc-1.3925.7746.38264.06-Buy
AXA Sterling Index Linked Bond Z Gr Acc-1.3525.8846.78264.06-Buy
AXA US Short Duration High Yield Bond Z Gr Acc1.206.6514.14906.923.60Buy
AXA US Short Duration High Yield Bond Z Acc1.204.8010.28906.923.60Buy
AXA US Short Duration High Yield Bond ZI Gr Acc1.477.4915.70906.923.90Buy
AXA US Short Duration High Yield Bond ZI Acc1.495.6511.69906.923.90Buy
AXA World Funds Global Inflation Bonds I Hedged Cap GBP-0.158.8313.563,522.95-Buy
Aberdeen Corporate Bond I Gr Acc2.8512.7432.991,819.732.40Buy
Aberdeen Corporate Bond I Acc2.8411.4229.171,819.732.40Buy
Aberdeen Emerging Markets Bond I Acc5.1216.0012.34113.025.60Buy
Aberdeen Euro Corporate Bond I Acc5.5424.1218.9827.231.00Buy
Aberdeen Global High Yield Bond I Acc4.499.4018.48624.824.80Buy
Aberdeen Sterling Bond I Acc-0.107.36-152.651.50Buy
Aberdeen Sterling Index-Linked Bond I Acc-1.1224.4740.65116.58-Buy
Aberdeen Strategic Bond I Acc4.9710.7824.15107.993.10Buy
Aberdeen Strategic Bond I Gr Acc4.9712.3226.80107.993.10Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Global High Income Z Gr Inc4.2615.2529.42118.334.80Buy
AXA Global High Income Z Inc4.2212.0622.49118.334.80Buy
AXA Sterling Corporate Bond Z Gr Inc3.5014.7630.9760.992.90Buy
AXA Sterling Corporate Bond Z Inc3.5013.1027.1360.992.90Buy
AXA US Short Duration High Yield Bond ZI Gr Inc1.487.5115.78906.923.90Buy
AXA US Short Duration High Yield Bond ZI Inc1.495.6911.65906.923.90Buy
AXA US Short Duration High Yield Bond Z Inc1.265.0010.35906.923.60Buy
AXA US Short Duration High Yield Bond Z Gr Inc1.216.6814.19906.923.60Buy
Aberdeen Corporate Bond I Inc2.8411.4029.181,819.732.40Buy
Aberdeen Emerging Markets Bond I Inc5.1116.0412.35113.025.60Buy
Aberdeen Euro Corporate Bond I Inc5.5524.1518.9027.231.00Buy
Aberdeen Global High Yield Bond I Inc4.499.3418.87624.824.80Buy
Aberdeen Sterling Bond I Inc-0.097.40-152.651.50Buy
Aberdeen Sterling Index-Linked Bond I Inc-1.1224.5240.67116.58-Buy
Aberdeen Strategic Bond I Inc4.9810.7924.10107.993.10Buy
Aberdeen Strategic Bond I Gr Inc4.9712.3026.66107.993.10Buy
Aberdeen Sterling Short Dated Corporate Bond I Inc GBP0.70--151.371.60Buy
Aberdeen Target Return Bond I Inc1.141.74-0.24235.541.30Buy
Aberdeen Target Return Bond I Gr Inc1.142.13-235.541.30Buy
Aberdeen World Opportunistic Bond I Inc2.446.26-129.092.80Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
BMO Barclays Global High Yield Bond GBP Hedged0.663.38--GBPFixed Int - Global High YieldBuy
BMO Barclays 1-3 Year Global Corporate Bond GBP Hedged-0.81-0.27--GBPFixed Int - GlobalBuy
BMO Barclays 3-7 Year Global Corporate Bond GBP Hedged-1.360.86--GBPFixed Int - GlobalBuy
BMO Barclays 7-10 Year Global Corporate Bond GBP Hedged-1.911.65--GBPFixed Int - GlobalBuy
ETFS Lombard Odier IM Emerging Market Local Government Bond Fundamental GO UCITS ETF GBP-4.03-0.05--GBPFixed Int - Emerging MarketsBuy
ETFS Lombard Odier IM Euro Corporate Bond Fundamental GO UCITS ETF GBP-3.294.63--GBPFixed Int - EUR Corporate BondBuy
ETFS Lombard Odier IM Global Corporate Bond Fundamental GO UCITS ETF Hedged GBP-0.981.37--GBPFixed Int - GlobalBuy
ETFS Lombard Odier IM Global Corporate Bond Fundamental GO UCITS ETF GBP-5.29-1.58--GBPFixed Int - GlobalBuy
ETFS Lombard Odier IM Global Government Bond Fundamental GO UCITS ETF Hedged Inc GBP-1.39-0.03--GBPFixed Int - GlobalBuy
ETFS Lombard Odier IM Global Government Bond Fundamental GO UCITS ETF GBP-5.94-1.31--GBPFixed Int - GlobalBuy
LYXOR USD Liquid Investment Grade Corporate Bonds UCITS ETF D GBP-11.16-12.31--GBPFixed Int - USD Corporate BondBuy
Lyxor UCITS ETF Iboxx $ Liquid Emerging Markets Sovereigns USD-2.402.0110.189.05USDFixed Int - Emerging MarketsBuy
PS Emerging Markets USD Bond ETF----USDFixed Int - Emerging MarketsBuy
PS USD Corporate Bond ETF----USDFixed Int - USD Corporate BondBuy
Pimco Emerging Markets Advantage Local Bond Index Source UCITS ETF Inc USD4.7812.8712.50-USDFixed Int - Emerging MarketsBuy
Pimco US Dollar Short Maturity Source UCITS ETF0.741.253.524.84USDFixed Int - USD Short/ Medium MaturityBuy
SPDR Thomson Reuters Global Convertible Bond UCITS ETF5.0611.3817.85-USDConvertibleBuy
SPDR Bloomberg Barclays 0-5 Year Sterling Corporate Bond UCITS ETF NAV-0.320.946.54-GBPFixed Int - GBP Corporate BondBuy
SPDR Bloomberg Barclays 0-3 Year US Corporate Bond UCITS ETF GBP-8.40-10.4612.79-GBPFixed Int - USD Short/ Medium MaturityBuy
SPDR Bloomberg Barclays 3-7 Year Euro Corporate Bond UCITS ETF-0.261.02--EURFixed Int - EUR Short/ Medium MaturityBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Downing Four VCT PLC DP67 0.1P-20.70-19.4015.9868.70-40.3253.66VCT GeneralistBuy
Downing Four VCT PLC DP2011 Low Carbon 0.1P71.4386.9191.9039.10-23.27-VCT GeneralistBuy
Downing Four VCT PLC DP2011 General A 0.1P99.97300.07300.0734.40-56.38-VCT GeneralistBuy
Downing Four VCT PLC DP2011 General 0.1P64.8729.3413.8225.00-38.00-VCT GeneralistBuy
Downing Four VCT PLC DP2011 Structured A 0.1P133.29366.73366.7334.50-56.51-VCT GeneralistBuy
Downing Four VCT PLC DP2011 Structured 0.1P47.3969.4167.125.00111.00-VCT GeneralistBuy
Downing Four VCT PLC B35.547.7412.674.44181.6435.54VCT GeneralistBuy
Downing Four VCT PLC C218.569,999.009,999.0010.94-54.25-VCT GeneralistBuy
Downing Four VCT PLC D-10.60-8.25-18.7578.50-61.788.33VCT GeneralistBuy

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