S&P releases fixed interest review
Standard & Poor’s has released its fixed interest sector review, with PIMCO and Tyndall both receiving an upgrade to five stars.
The EQT PIMCO Australian Bond Fund, Wholesale Australian Bond Fund and Australian Focus Fund, as well as Tyndall’s Australian Bond Fund, all received upgrades and were the only funds to receive the highest rating.
“Active fixed interest managers certainly hit a home run in 2009, with strong performances witnessed across the board,” said S&P fund services analyst David Erdonmez.
“A significant component of this performance has come from sector and security selection as portfolios benefited from generous allocations to credit and an underweight to government bonds. Additionally, managers have been enticed by the value offered in government-guaranteed bank and semi-government debt issued at attractive spreads,” Erdonmez said.
The EQT PIMCO Australian Focus Fund and Perennial’s Tactical Income Trust have been assigned ‘new’ ratings. They have a similar duration profile of about 1.8 years and incorporate a 50/50 composition of the UBS Bank Bill Index and UBS Composite Bond Index, according to S&P.
Through these products managers are effectively offering to manage clients’ interest rate exposure as rates move through the cycle, S&P said.
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