What is Driving Bond Fund Returns?

Bond fund managers have sought opportunities in market volatility this year. We look at the tailwinds for the sector, and reveal the biggest and best fixed income funds

Ashis Dash 31 October, 2017 | 10:08AM

The global flexible bond Morningstar Category has returned 7.89% year to date. This makes it one of the better performing fixed income categories, during a challenging environment.

While global bond markets experienced several episodes of volatility so far in 2017, arising from a range of factors from politics to central bank actions, these dislocations also provided investment opportunities. As confidence around the reflation trade, that had been reinforced from expectations of expansionary polices from the new US administration, started to unwind in early 2017, concerns around populist parties gathering momentum in Netherlands and France took hold of the markets.

The rejection of the populist candidate in Netherlands around mid-March was positive for the European markets.

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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.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Jupiter Dynamic Bond I EUR Acc14.25 EUR0.31
Man GLG Flexible Bond I H USD Acc123.04 USD0.08
PIMCO GIS Income R GBP Hedged Inc10.74 GBP0.09

About Author

Ashis Dash  is a Morningstar Fund Analyst

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