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 Acc7.3218.1032.3492.375.20Buy
AXA Global High Income Z Acc7.2614.6424.9192.375.20Buy
AXA Sterling Corporate Bond Z Gr Acc8.2918.7132.7360.093.00Buy
AXA Sterling Corporate Bond Z Acc8.2016.9728.8360.093.00Buy
AXA Sterling Index Linked Bond Z Acc3.7725.5155.48282.23-Buy
AXA Sterling Index Linked Bond Z Gr Acc3.8025.6155.99282.23-Buy
AXA US Short Duration High Yield Bond Z Gr Acc2.279.3815.64925.523.70Buy
AXA US Short Duration High Yield Bond Z Acc2.257.3511.59925.523.70Buy
AXA US Short Duration High Yield Bond ZI Gr Acc2.5210.2117.12925.524.00Buy
AXA US Short Duration High Yield Bond ZI Acc2.548.1012.91925.524.00Buy
AXA World Funds Global Inflation Bonds I Hedged Cap GBP3.1411.1415.063,383.54-Buy
Aberdeen Corporate Bond I Gr Acc7.3617.3434.981,859.712.50Buy
Aberdeen Corporate Bond I Acc7.4015.7830.921,859.712.50Buy
Aberdeen Emerging Markets Bond I Acc11.2619.5117.01114.706.20Buy
Aberdeen Euro Corporate Bond I Acc9.5819.1828.0927.830.80Buy
Aberdeen Global High Yield Bond I Acc7.4812.4621.26641.085.50Buy
Aberdeen Sterling Bond I Acc4.7310.83-156.051.50Buy
Aberdeen Sterling Index-Linked Bond I Acc4.5824.2649.29120.90-Buy
Aberdeen Strategic Bond I Acc7.4813.5126.02109.092.80Buy
Aberdeen Strategic Bond I Gr Acc7.4815.3428.53109.092.80Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Global High Income Z Gr Inc7.3518.2032.4692.375.20Buy
AXA Global High Income Z Inc7.2314.6124.9892.375.20Buy
AXA Sterling Corporate Bond Z Gr Inc8.2318.7832.8060.093.00Buy
AXA Sterling Corporate Bond Z Inc8.1916.9228.7160.093.00Buy
AXA US Short Duration High Yield Bond ZI Gr Inc2.5010.3017.29925.524.00Buy
AXA US Short Duration High Yield Bond ZI Inc2.458.1312.90925.524.00Buy
AXA US Short Duration High Yield Bond Z Inc2.257.3611.54925.523.70Buy
AXA US Short Duration High Yield Bond Z Gr Inc2.259.3715.71925.523.70Buy
Aberdeen Corporate Bond I Inc7.4015.7630.971,859.712.50Buy
Aberdeen Emerging Markets Bond I Inc11.2519.5417.02114.706.20Buy
Aberdeen Euro Corporate Bond I Inc9.5819.1827.9827.830.80Buy
Aberdeen Global High Yield Bond I Inc7.4912.4321.66641.085.50Buy
Aberdeen Sterling Bond I Inc4.7310.92-156.051.50Buy
Aberdeen Sterling Index-Linked Bond I Inc4.5824.2749.17120.90-Buy
Aberdeen Strategic Bond I Inc7.4713.4325.96109.092.80Buy
Aberdeen Strategic Bond I Gr Inc7.4715.3428.53109.092.80Buy
Aberdeen Sterling Short Dated Corporate Bond I Inc GBP1.81--144.711.50Buy
Aberdeen Target Return Bond I Inc0.830.240.37246.261.20Buy
Aberdeen Target Return Bond I Gr Inc0.850.77-246.261.20Buy
Aberdeen World Opportunistic Bond I Inc6.109.37-131.212.90Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
BMO Barclays Global High Yield Bond GBP Hedged1.416.00--GBPFixed Int - Global High YieldBuy
BMO Barclays 1-3 Year Global Corporate Bond GBP Hedged-0.010.57--GBPFixed Int - GlobalBuy
BMO Barclays 3-7 Year Global Corporate Bond GBP Hedged0.503.08--GBPFixed Int - GlobalBuy
BMO Barclays 7-10 Year Global Corporate Bond GBP Hedged1.525.68--GBPFixed Int - GlobalBuy
DB X-Trackers USD Corporate Bond UCITS ETF (DR) 1D USD2.507.72--USDFixed Int - USD Corporate BondBuy
DB X-Trackers II Iboxx Global Inflation-Linked UCITS ETF 5C GBP-1.672.2322.11-GBPFixed Int - GlobalBuy
DB X-Trackers II Iboxx Global Inflation-Linked UCITS ETF 2C USD1.294.2511.53-USDFixed Int - GlobalBuy
DB X-Trackers II Iboxx Global Inflation-Linked UCITS ETF 3D GBP0.823.2611.0316.52GBPFixed Int - GlobalBuy
DB X-Trackers II Barclays Global Aggregate Bond UCITS ETF 3D GBP0.562.56--GBPFixed Int - GlobalBuy
DB X-Trackers II Barclays Global Aggregate Bond UCITS ETF 1D GBP-3.330.9821.86-GBPFixed Int - GlobalBuy
DB X-Trackers II Global Government Bond UCITS ETF (DR) 2D GBP0.452.226.5114.39GBPFixed Int - GlobalBuy
DB X-Trackers II Global Government Bond UCITS ETF (DR) 5C GBP-3.281.5122.69-GBPFixed Int - GlobalBuy
DB X-Trackers II Global Government Bond UCITS ETF (DR) 3C USD0.98---USDFixed Int - GlobalBuy
DB X-Trackers II EUR High Yield Corporate Bond UCITS ETF (DR) 1D EUR1.555.23--EURFixed Int - EUR High YieldBuy
DB X-Trackers iBoxx USD Emerging Sovereigns Quality Weighted UCITS ETF (DR) 1D1.408.15--USDFixed Int - Emerging MarketsBuy
ETFS Lombard Odier IM Emerging Market Local Government Bond Fundamental GO UCITS ETF GBP-4.024.22--GBPFixed Int - Emerging MarketsBuy
ETFS Lombard Odier IM Euro Corporate Bond Fundamental GO UCITS ETF GBP1.188.73--GBPFixed Int - EUR Corporate BondBuy
ETFS Lombard Odier IM Global Corporate Bond Fundamental GO UCITS ETF Hedged GBP1.244.42--GBPFixed Int - GlobalBuy
ETFS Lombard Odier IM Global Corporate Bond Fundamental GO UCITS ETF GBP-0.285.57--GBPFixed Int - GlobalBuy
ETFS Lombard Odier IM Global Government Bond Fundamental GO UCITS ETF Hedged Inc GBP0.051.85--GBPFixed Int - GlobalBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Downing Four VCT PLC DP67 0.1P-14.49-11.5439.1766.10-31.928.89VCT GeneralistBuy
Downing Four VCT PLC DP2011 Low Carbon 0.1P39.449.0311.9440.50-56.79-VCT GeneralistBuy
Downing Four VCT PLC DP2011 General A 0.1P299.80300.07300.0731.20-51.91-VCT GeneralistBuy
Downing Four VCT PLC DP2011 General 0.1P85.0229.3413.8225.00-38.0064.52VCT GeneralistBuy
Downing Four VCT PLC DP2011 Structured A 0.1P366.42366.73366.7331.90-52.96-VCT GeneralistBuy
Downing Four VCT PLC DP2011 Structured 0.1P187.1069.4167.124.80119.7994.79VCT GeneralistBuy
Downing Four VCT PLC B--27.72-15.2015.20-17.73-VCT GeneralistBuy
Downing Four VCT PLC C99.804,905.004,905.000.104,905.00-VCT GeneralistBuy
Downing Four VCT PLC D-12.57-8.86-20.8976.10-60.5816.67VCT GeneralistBuy

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