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 Acc17.0713.1643.8795.565.80Buy
AXA Global High Income Z Acc15.438.3734.0595.565.80Buy
AXA Sterling Corporate Bond Z Gr Acc10.7620.5942.1153.643.60Buy
AXA Sterling Corporate Bond Z Acc10.0418.0836.6753.643.60Buy
AXA Sterling Index Linked Bond Z Acc23.6250.4851.33274.19-Buy
AXA Sterling Index Linked Bond Z Gr Acc23.6350.6051.93274.19-Buy
AXA US Short Duration High Yield Bond Z Gr Acc6.667.6920.91957.023.70Buy
AXA US Short Duration High Yield Bond Z Acc5.934.9515.63957.023.70Buy
AXA US Short Duration High Yield Bond ZI Gr Acc7.028.5722.60957.024.00Buy
AXA US Short Duration High Yield Bond ZI Acc6.115.4916.97957.024.00Buy
Aberdeen Absolute Return Bond I Acc1.08-3.92-154.911.30Buy
Aberdeen Absolute Return Bond I Gr Acc1.15-3.178.15154.911.30Buy
Aberdeen Corporate Bond I Gr Acc9.7521.6247.881,689.013.00Buy
Aberdeen Corporate Bond I Acc9.1719.0842.071,689.013.00Buy
Aberdeen Emerging Markets Bond I Acc18.1612.9427.2691.316.80Buy
Aberdeen Euro Corporate Bond I Acc20.0115.8236.3929.270.40Buy
Aberdeen Global High Yield Bond I Acc13.344.8431.70686.435.60Buy
Aberdeen Global Select Global Credit Bond R2 GBP5.9411.21-52.952.67Buy
Aberdeen Sterling Bond I Acc6.9018.80-144.900.90Buy
Aberdeen Sterling Index-Linked Bond I Acc22.1044.6342.54119.25-Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Global High Income Z Inc15.448.5234.1195.565.80Buy
AXA Global High Income Z Gr Inc17.0513.1643.5595.565.80Buy
AXA Sterling Corporate Bond Z Gr Inc10.8320.7242.1453.643.60Buy
AXA Sterling Corporate Bond Z Inc9.9718.0236.6753.643.60Buy
AXA US Short Duration High Yield Bond ZI Gr Inc7.018.5922.73957.024.00Buy
AXA US Short Duration High Yield Bond ZI Inc6.115.6716.89957.024.00Buy
AXA US Short Duration High Yield Bond Z Inc5.904.9615.56957.023.70Buy
AXA US Short Duration High Yield Bond Z Gr Inc6.757.7421.03957.023.70Buy
Aberdeen Absolute Return Bond I Inc1.08-3.90-154.911.30Buy
Aberdeen Absolute Return Bond I Gr Inc1.14--154.911.30Buy
Aberdeen Corporate Bond I Inc9.1619.03-1,689.013.00Buy
Aberdeen Emerging Markets Bond I Inc18.1412.9827.2891.316.80Buy
Aberdeen Euro Corporate Bond I Inc20.0015.8036.3129.270.40Buy
Aberdeen Global High Yield Bond I Inc13.344.7232.05686.435.60Buy
Aberdeen Global Select Global Credit Bond R1 GBP5.9311.21-52.952.67Buy
Aberdeen Sterling Bond I Inc6.9118.73-144.900.90Buy
Aberdeen Sterling Index-Linked Bond I Inc22.1144.61-119.25-Buy
Aberdeen Strategic Bond I Inc7.2710.9336.11122.463.30Buy
Aberdeen Strategic Bond I Gr Inc7.9713.6338.25122.463.30Buy
Aberdeen World Government Bond I Inc22.9235.50-50.292.20Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
DB X-Trackers II Iboxx Global Inflation-Linked UCITS ETF 2C USD1.409.1517.71-USDFixed Int - GlobalBuy
DB X-Trackers II Iboxx Global Inflation-Linked UCITS ETF 3D GBP1.079.1318.6021.09GBPFixed Int - GlobalBuy
LYXOR Emerging Market Local Currency Bond (DR) GBP18.2429.1212.57-GBXFixed Int - Emerging MarketsBuy
Lyxor UCITS ETF Iboxx $ Liquid Emerging Markets Sovereigns USD-4.4810.7814.0622.71USDFixed Int - Emerging MarketsBuy
Pimco Emerging Markets Advantage Local Bond Index Source UCITS ETF Inc USD-6.028.53--USDFixed Int - Emerging MarketsBuy
SPDR Barclays EM Inflation Linked Local Bond UCITS GBP0.4127.7922.36-GBPFixed Int - Emerging MarketsBuy
SPDR Barclays 0-3 Year US Corporate Bond UCITS ETF GBP9.1519.8837.57-GBPFixed Int - USD Corporate BondBuy
SPDR Barclays Emerging Markets Local Bond UCITS ETF GBP3.9129.9219.5914.62GBPFixed Int - Emerging MarketsBuy
SPDR BofA Merrill Lynch Emerging Markets Corporate Bond UCITS ETF GBP8.3331.4039.44-GBPFixed Int - Emerging MarketsBuy
SPDR Barclays 0-5 Year US High Yield Bond UCITS ETF GBP11.5735.2931.09-GBPFixed Int - USD High YieldBuy
iShares $ Emerging Markets Corporate Bond UCITS ETF GBP9.6933.3953.20-GBPFixed Int - Emerging MarketsBuy
iShares $ High Yield Corporate Bond UCITS ETF GBP13.6340.6447.7364.34GBPFixed Int - USD High YieldBuy
iShares $ Ultrashort Bond UCITS ETF GBP9.2518.9136.77-GBPFixed Int - USD Short/ Medium MaturityBuy
iShares $ Corporate Bond UCITS ETF USD-2.566.7613.9026.84USDFixed Int - USD Corporate BondBuy
iShares $ Corporate Bond Interest Rate Hedged UCITS ETF GBP11.9026.6339.03-GBPFixed Int - USD Corporate BondBuy
iShares $ Short Duration Corporate Bond UCITS ETF GBP8.3619.7440.09-GBPFixed Int - USD Short/ Medium MaturityBuy
iShares $ Short Duration High Yield Corporate Bond UCITS ETF GBP13.1734.9144.72-GBPFixed Int - USD Short/ Medium MaturityBuy
iShares Core £ Corporate Bond UCITS ETF GBP-0.6410.8124.1541.93GBPFixed Int - GBP Corporate BondBuy
iShares Emerging Markets Local Government Bond UCITS ETF GBP3.6932.1119.7810.20GBPFixed Int - Emerging MarketsBuy
iShares Euro Covered Bond UCITS ETF GBP2.8515.3514.0431.41GBPFixed Int - EUR Investment GradeBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Downing Four VCT DP67 0.1P-0.0613.14-15.54--7.41VCT GeneralistBuy
Downing Four VCT DP2011 Low Carbon 0.1P-26.41-24.74-31.59---VCT GeneralistBuy
Downing Four VCT DP2011 General A 0.1P-6.190.0715.46---VCT GeneralistBuy
Downing Four VCT DP2011 General 0.1P-40.47-37.65-48.16---VCT GeneralistBuy
Downing Four VCT DP2011 Structured A 0.1P36.450.0715.46---VCT GeneralistBuy
Downing Four VCT DP2011 Structured 0.1P-45.82-43.32-49.32---VCT GeneralistBuy
Downing Four VCT B-49.59-24.78-21.57---VCT GeneralistBuy
Downing Four VCT C2,405.002,405.002,405.00---VCT GeneralistBuy
Downing Four VCT D-5.56-2.55-11.95--7.81VCT GeneralistBuy

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