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  •  Alexander Forbes Investments Global Fixed Income Feeder Fund (A)

8.89  /  2.56%

347.1

NAV on 2021/02/25
NAV on 2021/02/24 338.21
52 week high on 2020/08/07 408.27
52 week low on 2021/02/24 338.21
Total Expense Ratio on 2020/09/30 1.53
Total Expense Ratio (performance fee) on 2020/09/30 0
NAV
Incl Dividends
1 month change -2.9% -2.9%
3 month change -1.77% -1.77%
6 month change -10.79% -10.79%
1 year change 4.38% 4.38%
5 year change 2.04% 2.04%
10 year change 9.52% 9.52%
Price data is updated once a day.
Click and drag to zoom in on timeline.
  • Sectoral allocations
Liquid Assets 0.39 0.86%
Offshore 45.09 99.14%
  • Top five holdings
O-FRGLOBO 44.68 98.25%
  • Performance against peers
  • Fund data  
Management company:
Alexander Forbes Investments Unit Trusts Limited
Formation date:
2004/03/23
ISIN code:
ZAE000047338
Short name:
U-ISGLFIF
Risk:
Unknown
Sector:
Global--Interest Bearing--Variable Term
Benchmark:
Barclays Capital Global Aggregate Bond index
  • Fund management  
Ben Jooste
Alexander Forbes Investments


  • Fund manager's comment

Investment Solutions Global FI Feeder - Mar 08

2008/05/30 00:00:00
The portfolio underperformed its benchmark for the quarter.
It invests in the Russell Global Bond Fund, which invests in four underlying bond managers. Colchester was the best-performing manager, with its Value-driven currency strategies the main contributor. Currencies such as the Japanese yen and the Swiss franc, in which Colchester is overweight, benefited from a flight to quality. However, being overweight non-agency collateralised mortgage obligations and overweight AAA sub-prime asset-backed securities mainly detracted from returns. Drake's portfolio is positively positioned for a spread-tightening environment. Loomis' sector allocation detracted as the manager was overweight the high-yield and investment-grade corporate sectors. Within the quarter's risk-averse market environment, the corporate sector significantly underperformed, which was challenging to Loomis' investment process. PIMCO outperformed, helped by its defensive stance. The manager's overweight-duration position in the US bond market and its yield-curve steepening bias were the main source of returns.
From a fundamental perspective, the underlying managers expect corporate bonds to remain under pressure as the economic slowdown intensifies and possibly becomes a recession. However, they believe the Bear Stearns investment bank rescue has helped stabilise spreads and that most of the expected negative news in the real economy has already beenpriced in. The managers expect to selectively add to their credit positions, anticipating spread tightening by year-end.
The Lehman Brothers Global Aggregate Bond Index rose 26.8% in rands during the quarter as risk-averse investors sought shelter in government bonds. Major investment bank write-downs and growing concerns about bond insurers' solvency added to investor uncertainty over the state of the global financial sector. Volatility affected markets from the first day of the year as weak US economic data led to fears of recession. The Federal Reserve (Fed) responded by twice decreasing interest rates during January by a total of 1.25% and, despite inflationary effects from rising commodity prices, decreasing them further in March to 2.25%.
As investors moved to safer parts of the bond market, US treasuries significantly outperformed. Sectors such as asset-backed securities, financials and municipal bonds came under strong selling pressure as spreads continued to widen. However, credit spreads stabilised towards the end of the period when the Fed orchestrated a deal to bail out Bear Stearns.
  • Fund focus and objective  
The investment managers selected for this portfolio may invest in global fixed income instruments comprising mainly bonds denominated in a variety of global currencies. Bonds are issued by national governments or corporate entities and often provide an investor with a higher investment return than cash over the medium to longer term. In managing this broadly diversified portfolio, the managers make controlled active investment decisions regarding the duration of the instruments, the country of origin, the credit risks and the appropriate currency.
The portfolio is aimed at investors pursuing exposure to global bond markets. Investment Solutions expects:
! A low probability of capital loss over the medium term (however, due to volatility of the exchange rate of the currencies there may be capital loss in Rand terms)
! Investment returns in Rand terms to be more volatile due to movements in the exchange rate of currencies
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