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The best bond funds investing globally


Die momentane Euro-Schwäche bringt Managern globaler Anleihefonds 
gute Gewinne. Quelle: ap

The current weakness of the euro brings a global bond fund managers making good profits. Source: AP

FRANKFURT. Currencies to pay off for investors: general manager of global bond funds have earned good money in the euro weakness. In one month, the value of many funds rose by four percent – that’s a lot of pension funds, which often do not achieve much more in the year. In 2009 Bond Fund managed abnormal returns. These times richer double-digit returns likely in the opinion of experts, however, be over.

The euro’s weakness will see a global bond fund managers rather than temporarily. The fact that U.S. investors withdraw their money because of wrangling over government finances are currently in Europe, leading to Peter Huber, founder of boutique fund Star Capital, this "temporary phenomenon". There is no fundamental weakness of the euro. The markets have been exaggerated in view of Greece, says Gerd Rendenbach of Pioneer Investments. He does not sit at short notice that the euro against the U.S. dollar, yen and British pound continues to fall. Both, however, betting on a further appreciation of emerging market currencies against the euro. Huber, like bonds in Mexican pesos and Brazilian Real, Rendenbach bonds in Hong Kong dollars.

Foreign currency gains make an important contribution to the global bond yields. The value of bond funds StarCapital foreign currency earnings made in the past twelve months, nearly one fifth of the value of 34.4, percent. 2009, only even more struck by the rally in corporate and emerging market bonds. For investors, the funds that rely on different types of bonds in different currencies offer is double returns. But they must also adjust to relatively strong fluctuations in value since the fund managers take higher risks. Thus, the current best-performing funds have fluctuated over the past five years by nine percent to 14 percent in value, calculated the fund house rating Feri. "Global bond funds are suitable as a blending component for investors who are hoping extra yield on currencies," said Natalia Wolfstetter the rating provider Morningstar. Funds with extreme fluctuations in value, but investors should avoid.

One for the category slightly above average volatility of 9.2 percent compared to over seven percent of the benchmark index Citigroup World Government Bond Index Fund has Hubers Star Capital Bond Value. Huber, who has recently focused heavily on foreign currency bonds and bonds with longer maturities, has been building from bonds and currency exchange company in the medium term government bonds, he says. "Such investment opportunities by 2009 as there is only every few decades." Feri evaluate the fund with the second-best rating of "B".

Extreme is set up with the Rendenbach Pioneer Investment Total Return Fund. In the past twelve months, the fund managers managed to the highest return in the category of just over 50 percent, with a focus on corporate, emerging market bonds and Eastern Europe. Currently he drives up the share of government bonds and is isolated on financial stocks such as KfW or the British bank Northern Rock.

2008, however, the Fund recorded a loss of almost one third. Rendenbach had missed out on the government bond rally. Withdrawn from the fund investors billions of euros. Because of this extreme variability Feri evaluate the performance of funds with "C" average – "not for the faint of heart," said analyst Andre Feri Hartel. Pioneer is now thinking about renaming the fund.

In last place is the Global Bond Fund of the French star fund house Carmignac. Fund manager Laurent has Chebani speculation with the yen and government bonds, as he writes – and in 2009 lost more than 17 percent. Starting in March, Charles Zerah manages the fund.