The worst performer among fixed income funds authorised for sale to investors in Hong Kong is one that “aims to produce a positive total return (through a combination of income and capital growth) over rolling 3-year periods regardless of market condition”, according to the fund’s factsheet.
The Investec Target Return Bond Fund has managed to deliver a loss of 3.62% over the three years ending 31 March, one of only 16 funds posting a loss during the period, out of 241 in the sample, according to data from FE (FSA narrowed the SFC-authorised fund universe to products with minimum three years of track record and at least $100m in AUM).
Worst fixed income performers
|Investec Target Return Bond Fund||-3.62%|
|AB FCP I Global Bond Portfolio||-3.38%|
|Blackrock GF US Government Mortgage Fund||-3.12%|
|SJP Index Linked Gilts Fund||-2.64%|
|MFS Meridian Limited Maturity Fund||-2.22%|
Data: FE, 31 March 2018, cumulative returns in US dollars. Universe is SFC-registered fixed income funds with $100m in AUM.
The list of the five worst fixed income performers includes a diversified global bond portfolio from Alliance Bernstein, a Blackrock fund investing in US mortgage-linked assets guaranteed by the US government, a fund investing in inflation-linked UK government bonds, managed by Blackrock for St. James’s Place, and a diversified short-maturity bond fund from MFS Meridian.
The five funds are distinctly different fund each other, making it difficult to identify any one theme that may have influenced the under-performance.
Worst-performing fixed income funds