Several emerging market bond funds were also among the top performers, and they dominated the top-ten list of funds registered for sale in Singapore.
“The weakness of the US dollar also caused the local emerging market bonds to outperform,” the expert told FSA. “Similarly the spread tightening of emerging market corporate bonds also played a minor part in the outperformance of emerging market bonds.”
The France-domiciled Natixis H2O Multibonds Fund tops the list. It invests predominantly in European government bonds, with a 32% exposure to Greek debt, 19% to Italy and 17% to Portugal, according to the fund’s June 2017 semi-annual report.
Top 10 fixed income funds in 2017 (Singapore)
| Fund | Category | 1-year Return |
| Natixis H2O Multibonds | Global Bonds | 30.02% |
| GAM Star Credit Opportunities | European Bonds | 29.60% |
| Credit Suisse (Lux) Contingent Capital Euro | European Bonds | 27.81% |
| Nordea European Financial Debt | European Bonds | 27.35% |
| Bluebay Emerging Market Local Currency Corporate Bond | Emerging Market Bonds | 27.19% |
| Global Evolution Frontier Markets | Emerging Market Bonds | 26.87% |
| Worldwide Investors Portfolio Emerging Markets Fixed Income | Emerging Market Bonds | 25.82% |
| Bluebay Emerging Market Select Bond Fund | Emerging Market Bonds | 25.30% |
| GAM Multilabel Sicav Hybrid Bonds | Global Bonds | 24.28% |
| Robeco QI Dynamic High Yield | Global High Yield | 24.18% |
Data: FE. All returns in US dollars, as of 31 December 2017
The list of worst-performing fixed income funds in Singapore is, like in Hong Kong, is dominated by US dollar bonds and global bond funds. Unconstrained, total-return bond strategies, however, top the list, which also includes the Schroder Gaia Cat Bond Fund, specialising in insurance-linked securities, also known as catastrophe bonds.
Bottom 10 fixed income funds in 2017 (Singapore)
| Fund | Category | 1-year Return |
| T.Rowe Price Dynamic Global Bond | Global Bonds | -1.89% |
| Investec Target Return Bond * | Global Bonds | -0.94% |
| Goldman Sachs Global Strategic Income Bond Portfolio | Global Bonds | -0.83% |
| Alliance Bernstein Global Bond Portfolio * | US Dollar Bonds | -0.83% |
| Legg Mason Western Asset US Short-Term Government * | US Dollar Bonds | -0.78% |
| GAM Multipartner Sicav Carthesio Asian Credit | Asia Pacific Bonds | -0.56% |
| Schroder Gaia Cat Bond | Global High Yield (Catastrophe bonds) | -0.43% |
| Legg Mason Western Asset US Adjustable Rate * | US Dollar Bonds | -0.17% |
| MFS Meridian Limited Maturity * | US Dollar Bonds | -0.09% |
| Franklin US Government * | US Dollar Bonds | 0.19% |
