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 Acc9.7612.9937.4591.765.40Buy
AXA Global High Income Z Acc9.159.0929.2891.765.40Buy
AXA Sterling Corporate Bond Z Gr Acc3.5922.4438.1649.963.30Buy
AXA Sterling Corporate Bond Z Acc3.3120.4633.8549.963.30Buy
AXA Sterling Index Linked Bond Z Acc0.7138.4458.70292.94-Buy
AXA Sterling Index Linked Bond Z Gr Acc0.6938.4659.25292.94-Buy
AXA US Short Duration High Yield Bond Z Gr Acc2.357.5817.51908.643.70Buy
AXA US Short Duration High Yield Bond Z Acc2.105.3213.02908.643.70Buy
AXA US Short Duration High Yield Bond ZI Gr Acc2.618.4319.01908.644.00Buy
AXA US Short Duration High Yield Bond ZI Acc2.386.0014.58908.644.00Buy
Aberdeen Absolute Return Bond I Acc1.70-1.863.53181.971.30Buy
Aberdeen Absolute Return Bond I Gr Acc1.55-1.324.91181.971.30Buy
Aberdeen Corporate Bond I Gr Acc1.3421.4741.821,737.902.70Buy
Aberdeen Corporate Bond I Acc1.2519.6137.191,737.902.70Buy
Aberdeen Emerging Markets Bond I Acc4.9012.8622.0786.666.00Buy
Aberdeen Euro Corporate Bond I Acc6.6822.4239.4428.711.00Buy
Aberdeen Global High Yield Bond I Acc6.745.0825.60671.335.40Buy
Aberdeen Global Select Global Credit Bond R2 GBP1.798.6224.7447.112.47Buy
Aberdeen Sterling Bond I Acc-1.9016.45-138.331.20Buy
Aberdeen Sterling Index-Linked Bond I Acc0.3635.3449.22121.03-Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
BMO Barclays Global High Yield Bond GBP Hedged2.356.32--GBPFixed Int - Global High YieldBuy
BMO Barclays 1-3 Year Global Corporate Bond GBP Hedged0.520.43--GBPFixed Int - GlobalBuy
BMO Barclays 3-7 Year Global Corporate Bond GBP Hedged2.050.77--GBPFixed Int - GlobalBuy
BMO Barclays 7-10 Year Global Corporate Bond GBP Hedged3.50-0.09--GBPFixed Int - GlobalBuy
DB X-Trackers Barclays USD Corporate Bond UCITS ETF (DR) 1D USD4.441.00--USDFixed Int - USD Corporate BondBuy
DB X-Trackers II Iboxx Global Inflation-Linked UCITS ETF 5C GBP1.771.6729.89-GBPFixed Int - GlobalBuy
DB X-Trackers II Iboxx Global Inflation-Linked UCITS ETF 2C USD1.850.2312.73-USDFixed Int - GlobalBuy
DB X-Trackers II Iboxx Global Inflation-Linked UCITS ETF 3D GBP1.32-0.6812.6818.59GBPFixed Int - GlobalBuy
DB X-Trackers II Global Government Bond UCITS ETF (DR) 3C USD----USDFixed Int - GlobalBuy
DB X-Trackers II Barclays Global Aggregate Bond UCITS ETF 3D GBP1.75-1.31--GBPFixed Int - GlobalBuy
DB X-Trackers II Barclays Global Aggregate Bond UCITS ETF 1D GBP2.400.3529.99-GBPFixed Int - GlobalBuy
DB X-Trackers II Global Sovereign UCITS ETF 2D GBP1.66-2.349.0215.53GBPFixed Int - GlobalBuy
DB X-Trackers II Global Sovereign UCITS ETF 5C GBP3.36-1.0830.49-GBPFixed Int - GlobalBuy
DB X-Trackers iBoxx USD Emerging Sovereigns Quality Weighted UCITS ETF (DR) 1D0.89-2.27--USDFixed Int - Emerging MarketsBuy
ETFS Lombard Odier IM Emerging Market Local Government Bond Fundamental GO UCITS ETF GBP4.797.70--GBPFixed Int - Emerging MarketsBuy
ETFS Lombard Odier IM Euro Corporate Bond Fundamental GO UCITS ETF GBP9.386.61--GBPFixed Int - EUR Corporate BondBuy
ETFS Lombard Odier IM Global Corporate Bond Fundamental GO UCITS ETF Hedged GBP2.210.40--GBPFixed Int - GlobalBuy
ETFS Lombard Odier IM Global Corporate Bond Fundamental GO UCITS ETF GBP4.524.18--GBPFixed Int - GlobalBuy
ETFS Lombard Odier IM Global Government Bond Fundamental GO UCITS ETF Hedged Inc GBP1.36-2.30--GBPFixed Int - GlobalBuy
ETFS Lombard Odier IM Global Government Bond Fundamental GO UCITS ETF GBP5.582.13--GBPFixed Int - GlobalBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Downing Four VCT PLC DP67 0.1P-19.49-10.37-21.9266.10-31.928.89VCT GeneralistBuy
Downing Four VCT PLC DP2011 Low Carbon 0.1P39.448.321.1540.50-56.79-VCT GeneralistBuy
Downing Four VCT PLC DP2011 General A 0.1P99.93100.07100.0731.20-51.91-VCT GeneralistBuy
Downing Four VCT PLC DP2011 General 0.1P-5.98-39.33-47.7325.00-38.0064.52VCT GeneralistBuy
Downing Four VCT PLC DP2011 Structured A 0.1P99.93100.07100.0731.90-52.96-VCT GeneralistBuy
Downing Four VCT PLC DP2011 Structured 0.1P94.7914.161.094.80119.7994.79VCT GeneralistBuy
Downing Four VCT PLC B--33.14-16.7815.20-17.73-VCT GeneralistBuy
Downing Four VCT PLC C99.804,905.004,905.000.104,905.00-VCT GeneralistBuy
Downing Four VCT PLC D-5.56-0.71-11.9576.10-15.907.81VCT GeneralistBuy

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