High-yield and inflation-linked bond funds were the top fixed income fund performers in 2021.
However Eurizon’s SLJ Bond Aggregate RMB (Renminbi) fund posted the biggest return in the year to December 23, showing a 12.24 per cent return.
Man Group’s subsidiary Man GLG’s high yield opportunities fund saw the second highest return in the year, with a 10.66 per cent return.
Pimco’s GIS Inflation Strategy fund posted a 10.49 per cent return, and Axa’s World Funds Global Inflation Bonds came fourth with a 9.97 per cent return.
Invesco’s High Yield (UK) fund and iShares’ Global High Yield Corp Bond GBP Hedged fund also performed well, showing a 9.61 per cent and 9.26 per cent return respectively.
Inflation-linked funds have performed well in a year that has seen above-average levels of inflation.
Earlier this month, the Bank of England raised interest rates to 0.25 per cent in response to increasing inflation which hit 5.1 per cent in the twelve months to November.
Top performing fixed income funds in year to December 23
Fund | Return |
Eurizon - SLJ Bond Aggregate RMB (Renminbi) | 12.24% |
Man GLG - High Yield Opportunities | 10.66% |
Pimco - GIS Inflation Strategy | 10.49% |
AXA - World Funds Global Inflation Bonds | 9.97% |
Invesco - High Yield (UK) | 9.61% |
iShares - Global High Yield Corp Bond GBP Hedged | 9.26% |
VT - Garraway Diversified Income | 8.74% |
Invesco - Global Investment Grade Corporate Bond | 8.09% |
iShares - $ TIPS Ucits ETF | 7.86% |
SSGA - SPDR Bloomberg Barclays U.S. TIPS Ucits ETF | 7.74% |
Source: FE Fundinfo
sally.hickey@ft.com
