4th September 2017

Bond Fund Performance Rankings: August 2017

Taking a look at how the largest and top performing funds fared in the quarter/year to August 2017, and in the Investment Grade space it was a case of the usual suspects coming out on top.

On performance and reasonable size (of funds) it’s the Nordea 1 and Schroder ISF Euro Credit Convct funds which catch the eye – returning 11.4% and almost 6%, respectively.

For the largest funds, again the Schroders ISF Euro Corp fund returned a solid, albeit lower than previously, 4.76% (AUM up a little to €8.5bn) in the 3 months to end August while it also outperforms in the year to end July with 2.9% of performance.

The MS INVF Euro Corp fund also puts up a good effort (3.79%/AUM €3.9bn), as does the Bluebay IG fund (3.65%/AUM €3.1bn).

>>See the full IG Euro Performance tables<<

In euro HY, the two funds which consistently stick out are the €1,019m Schroders ISF fund and the Evli European HY fund (AUM €852m). They have reasonable size and consistent performance, albeit returning a reduced 5% and 4%, respectively, in the three months to August and almost 8% in the year to end July.

The €3.7bn Fidelity and €2.8bn UBS European HY funds (AUM unchanged) have also generated solid performances (over 4%) given their size. On the other hand, the €3.8bn Pictet euro short term fund returned just 1.8% in the 3 months and 2.2% in the year, both to end August.

Once again, small is beautiful with 20%+ returns garnered for the little ones while Schroders and Evli come out in the top 20 there, too.

>>See the full HY Euro Performance tables<<

In sterling, the high grade market performance has the £242m Liontrust Monthly Income Bond Z fund drop back into fourth, delivering a worthy 4.39% although the TwentyFour Corporate Bond I fund (AUM £443m) has delivered a perky 6.5%, both in the 3 months to end August.

Rathbone’s Ethical funds have delivered on average 8% in the quarter to end August.

For the bigger funds, the IP Corporate Bond Acc is a notable out-performer with 4% in the 3 months to August and 2.3% in the year to end August.

L&G High Income (AUM £1.4bn) has delivered 6.14% and 9.54% in the 3 month and 12 month to end August, respectively, and is the notable outperformer in the high yield space.

>>See the full Sterling IG and Sterling HY Performance tables<<

Suki Mann

A 30+ year veteran of the European corporate bond markets and in his role as Credit Strategist, Dr Mann has been ranked number one in the Euromoney Investor Survey eight times in ten years. Previously with Societe Generale and UBS, he now shares views of events in the corporate bond market exclusively here on CreditMarketDaily.com.