Global bond markets have been making more money than equities over the last decade according to t...
Global bond markets have been making more money than equities over the last decade according to the latest report on global fixed interest funds published by Standard & Poor's.
According to the fund ratings and research firm, the average bond fund rose between 3.1% and 12.4% over the last 12 months, up to February 2001.
Over that same period, says the report, the average global equity fund denominated in sterling grew by 2.8%, but tumbled by more than 7% if denominated in dollars.
However, figures quoted in the report - which looks at funds denominated in US dollar, sterling, euro and Swiss franc - does suggest fund returns within most of these sectors have narrowed on a year ago, with the exception of sterling bond funds.
The top performing sterling bond fund registered a 22% gain over the last 12 months, while the worst performer saw a 1% loss. Over the previous year the margin between first and last fund in the sector had been just under 20 percentage points.
Outperformance of bond fund performance targets was achieved in the last 12 months bythrough asset allocation, says the Standard & Poor's report, but was also possible if investors opted for emerging market bonds.
INVESCO GT (now INVESCO Perpetual) Strategic Bond Fund is thought to be one fo the winners in the last year, benefited from its 60% exposure to emerging market debt to return the 4th best performance in the US$ Global sector.
For more information on the Standard & Poor's global fixed interest funds report, click on the link page (right) or go to www.sandp.com.
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