3 Top Rated Global Bond Funds

Companies listed across the globe use the bond market to raise cash. Fixed income investors can gain exposure to the emerging market growth story through global bond funds

Emma Wall 10 September, 2014 | 3:58PM
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This article is part of Morningstar's Guide to Financial Education

Bond investors wanting to gain exposure to the four corners of the globe should find a highly-rated fund manager who can carve up the geographical exposure on their behalf.

These three global bond funds are highly rated by Morningstar analysts, and have posted positive returns this year against a tricky backdrop. Investors should be aware that not all global funds are traded in sterling and so you could be taking on currency risk when investing.

Loomis Sayles Multisector Income Fund

This Gold Rated fund’s charms were on full display in 2013. It might be tempting to pile into a fund that managed exceptional returns over the bond bull market and thrived in 2013 as well. But this is not an all-weather fund. For those with the requisite patience, this fund remains a star.

PIMCO Total Return Bond Fund

This Gold Rated fund's occasional stumbles may be disappointing to investors who have come to expect perfection from it, but they're otherwise bumps along a long road of great success. Gross has continued to show, in both bull (2012) and bear (2008) markets, that the fund can still excel. Its solid longer-term returns and moderate volatility have combined to form an excellent record.

Templeton Global Bond

Morningstar analysts think this Silver Rated fund is an attractive choice for investors who understand its risks. Manager Michael Hasenstab is experienced and has been at this fund's helm since 2002. The established investment process is robust, being driven by valuation and fundamentals. Hasenstab invests in areas he believes are undervalued given the team’s global macroeconomic analysis and detailed country-level expectations. He then implements his views in the portfolio through a currency trade, by taking on credit risk, or through both. 

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Loomis Sayles Multisector Inc RE/A EUR20.64 EUR0.03Rating
PIMCO GIS Ttl Ret Bd E USD Acc26.37 USD0.26Rating
Templeton Global Bond A(acc)USD24.65 USD-0.03Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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