The AB Dynamic Global Fixed Income Fund aims to achieve returns that exceed the those of Bloomberg AusBond Bank Bill Index, after fees, over five-year periods. The Fund is designed for investors with higher risk tolerances who want to achieve income returns exceeding those of Australian bank bill rates over the long term by investing in global debt or fixed-income securities.
• In September, the Fund underperformed its benchmark.
• Country/yield curve positioning benefitted relative performance.
• Sector/security selection positioning benefited relative performance. Selections in European investment-grade corporates contributed. Allocation in high-yield corporates also boosted returns, driven by communications names in Europe as spreads tightened over the month.
• Currency positioning did not materially impact performance.
What is AB Dynamic Global Fixed Income AB Dynamic Global Fixed Income is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Multi-Strat Income Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The AB Dynamic Global Fixed Income has Assets Under Management of 639.91 M with a management fee of 0.55%, a performance fee of 0.00% and a buy/sell spread fee of 0.31%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the AB Dynamic Global Fixed Income has returned 0.65% in the last month. The previous three years have returned 1.49% annualised and 2.9% each year since inception, which is when the AB Dynamic Global Fixed Income first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since AB Dynamic Global Fixed Income first started, the Sharpe ratio is NA with an annualised volatility of 2.9%. The maximum drawdown of the investment product in the last 12 months is -0.35% and -9% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The AB Dynamic Global Fixed Income has a 12-month excess return when compared to the Fixed Income - Multi-Strat Income Index of -2% and -0.52% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. AB Dynamic Global Fixed Income has produced Alpha over the Fixed Income - Multi-Strat Income Index of NA% in the last 12 months and NA% since inception.
What are similar investment products?
For a full list of investment products in the Fixed Income - Multi-Strat Income Index category, you can click here for the Peer Investment Report.
What level of diversification will AB Dynamic Global Fixed Income provide?
AB Dynamic Global Fixed Income has a correlation coefficient of 0.87 and a beta of 0.58 when compared to the Fixed Income - Multi-Strat Income Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on AB Dynamic Global Fixed Income and its peer investments, you can click here for the Peer Investment Report.
How do I compare the AB Dynamic Global Fixed Income with the Global Aggregate Hdg Index?
For a full quantitative report on AB Dynamic Global Fixed Income compared to the Global Aggregate Hdg Index, you can click here.
Can I sort and compare the AB Dynamic Global Fixed Income to do my own analysis?
To sort and compare the AB Dynamic Global Fixed Income financial metrics, please refer to the table above.
Has the AB Dynamic Global Fixed Income been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in AB Dynamic Global Fixed Income?
If you or your self managed super fund would like to invest in the AB Dynamic Global Fixed Income please contact 32/88 Phillip St, Sydney NSW 2000, Australia via phone 02 9255 1200 or via email Aust_ClientService@alliancebernstein.com.
How do I get in contact with the AB Dynamic Global Fixed Income?
If you would like to get in contact with the AB Dynamic Global Fixed Income manager, please call 02 9255 1200.
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the AB Dynamic Global Fixed Income. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - August 31, 2023 • In August, the Fund underperformed its benchmark.
• Country/yield curve positioning benefitted relative performance
• Our position in Australia contributed, especially with our exposure in the two- to 10-year part of the curve where rates rallied the most.
• Sector/security selection positioning did not materially impact relative performance
Performance Commentary - July 31, 2023 • In July, the Fund outperformed its benchmark.
• Sector/security selection benefitted relative performance. Our exposure to investment- grade securities added to returns as spreads tightened over the period, notably in banking sector.
• Country/yield-curve positioning boosted returns.
Performance Commentary - June 30, 2023 • In June, the Fund underperformed its benchmark after fees.
• Country/yield-curve positioning hurt relative performance.
• Our exposure to Australian rates also negatively impacted the performance as yields rose all along the curve.
• Our exposure to investment- grade securities added to returns as spreads tightened over the period.
• Exposure to non-investment grade securities was also positive.
Performance Commentary - April 30, 2023 • In April, the Fund outperformed its benchmark. Sector/security selection added to relative performance. Our election in EUR dominated investment-grade securities benefited returns as spreads tightened over the period, notably in the financial sector.
• The Fund’s long to Australian rates detracted as yield rose during the month. Currency positioning was negative.
• Currency positioning did not materially impact relative performance and there were no positions of note.
• In April, we also reduced our allocation to high-yield corporate bonds as we sold some banking and consumer non-cyclical credit in the BB tranche of the credit rating spectrum.
Performance Commentary - March 31, 2023 Fund Performance:
• In March, the Fund outperformed its benchmark.
• Country/yield-curve positioning boosted returns. The Fund’s long to Australian and British bonds benefited performance as yields went down in March.
• Sector/security selection hurt performance. Our exposure to investment- grade securities detracted performance as selections in banking names detracted in the wake of several high-profile bank failures in the US and the acquisition of Credit Suisse by UBS in Europe.
• Currency positioning was negative.
Performance Commentary - February 28, 2023 Fund Performance
• In February, the Fund underperformed its benchmark. Country/ yield-curve positioning hurt performance. The Fund’s long to US, UK, Australia and New Zealand detracted as rates rose in February.
• Sector/security selection did not materially impact returns. An exposure to inflation- linked securities boosted returns as frontend breakevens moved about 100 basis points (b.p.) higher due to persistent core inflation.
• Currency positioning did not materially impact relative performance and there were no positions of note.
Fund Strategy
• In the UK, we increased our long position by adding some Gilt futures and went from a short to a long position in the 10-year portion of the yield curve.
• High-yield corporate bonds represent less than 5% of the Fund’s total assets. We trimmed some utility and communications names like Northumbrian Water, Netflix or United Group
Performance Commentary - January 31, 2023 • In January, the Fund outperformed its benchmark. Sector/ security selection boosted returns. Our exposure to high yield and investment grade corporates spaces benefited performance.
• Country/yield-curve positioning benefited performance.
• Currency positioning was negative. Portions of our currency strategy offset some contribution, particularly shorts in the Chilean peso as well as longs to the Norwegian krone, Canadian dollar, Swedish krona and Peruvian sol.
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