5th November 2017

Bond Fund Performance Rankings: October 2017

Time now to look at how the largest and top performing funds fared in the quarter/year to October 2017.

The performance of the reasonably-sized funds has BlueBay‘s Investment Grade fund leading the pack, returning over 9% followed by the Schroder ISF Euro Credit funds returning 7.2%, in the third quarter of 2017 to the end of September. That represents an increase versus the 3 months to end of September where the Schroder’s fund returned 7% and BlueBay’s 5.4%.

For the largest funds, again the Schroders ISF Euro Corp fund saw AUM up a little to €8.8bn at the end of October, while it also outperforms in the year to the end of October with almost 5% of performance.

The smaller targeted Schroder ISF Euro Credit Convct fund with AUM of €1.6bn has returned 7% in the past 12 months versus index returns (iBoxx) of around 2%.

>>See the full IG Euro Performance tables<<

In euro HY, the two funds which consistently stick out are the €1,211m Schroders ISF fund and the Evli European HY fund (AUM €858m). They have reasonable size and consistent performance, returning an improved 7.2% and 7.15%, respectively, in the three months to October and around 9% in the 12 months to the end of October.

The €3.8bn Fidelity fund (AUM unchanged) has also generated solid performance of 8% in the 3 months to October and 7.6% in the last 12 months. On the other hand, the €3.8bn Pictet Euro Short-term fund returned just 3.7% in the 3 months (although improved) and just 2.6% in the last 12 months, both to the end of October.

>>See the full HY Euro Performance tables<<

In sterling, the Gilt market sell-off in September impacted performance – and it was clear in all the returns generated.

The high grade market performance had the £250m Liontrust Monthly Income Bond Z fund deliver just 0.38% in the quarter to the end of October (versus -0.37% in the 3 months to the end of September), for example. On the other hand, Rathbone’s Ethical Bond Acc R fund delivered 3.7% in the quarter to the end of October.

For the bigger funds, the IP Corporate Bond Acc (AUM 4.7bn) is a notable out-performer with 2.19% in the 3 months to September along with the M&G Strategic Corporate fund (AUM £3.4bn) on 2.28% of total returns in the quarter to end October. The Scottish Widows Corporate Bond Tracker lost 2.23% in the same period!

On the other hand, the L&G High Income (AUM £1.4bn) delivered a massive 11.2% and 10.5% in the 3 month and 12 month periods to the end of October, respectively, and is once again the notable out-performer in the high yield space.

>>See the full Sterling IG & 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.