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Investec GS US Dollar Bond comment - Dec 03
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Thursday, 12 February 2004
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Fund Manager Comment
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| The Fund invests in US dollar denominated bonds, including government and high-grade corporate, agency and mortgage backed securities. Returns are derived both from the income received on investments and from capital gains when the prices of selected bonds rally. The manager's approach to the duration and type of bonds is key to the fund's potential to make capital gains.
Bond markets have corrected following strong performance in the first half of 2003. The strong rebound in US growth has caused expectations that interest rates will rise, though excess production capacity in the corporate sector and rising productivity is likely to moderate increases in inflation. As a result, the manager has reduced the fund's sensitivity to interest rates by taking a conservative approach to duration. While its rising current account deficit and its fiscal deficit have prompted some concern, the US economy's unique characteristics, including its inherent flexibility, the size and liquidity of its bond market and its ability to issue debt in its own currency should help it manage its structural challenges long-term. |
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Investec GS US Dollar Bond comment - Sep 03
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Monday, 10 November 2003
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Fund Manager Comment
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| The fund invests in US dollar denominated bonds, including government and high-grade corporate, agency and mortgage backed securities. Returns are derived both from the income received on investments and from capital gains when the prices of selected bonds rally. Key to the capital gain potential is the manager's strategy with regard to the portfolio's duration and its exposure to the different kinds of bonds. For instance, credit (i.e. corporate and other non-government) bonds may be re-rated against treasuries from time to time.
The economic outlook is mixed: structural problems likely to hinder long-term growth, such as indebted consumers and excess production capacity in the US and a rigid labour market and the restrictive Growth and Stability Act in Europe, remain unresolved. However, these have been offset in the near term by the combined stimulus of 13 rate cuts by the US Fed over the past two and a half years, a weak dollar and a $350bn tax cut package, which have begun to spur stronger growth in the US and other major economies. Signs of economic recovery in the US and other major economies have prompted a correction in bond markets, which had become overvalued after a strong run in the first half of the year. However, despite short-term negative sentiment, low inflation and a bias by central banks to cut or keep interest rates stable works in favour of quality bonds and, as stable, fixed income investments, they remain an attractive long-term investment. |
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Investec GS US Dollar Bond comment - June 2003
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Tuesday, 12 August 2003
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Fund Manager Comment
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| The fund invests in US dollar denominated bonds, including government and high-grade corporate, agency and mortgage backed securities. Returns are derived both from the income received on investments and from capital gains when the prices of selected bonds rally. Key to the capital gain potential is the manager's strategy with regard to the portfolio's duration and its exposure to the different kinds of bonds. For instance, credit (i.e. corporate and other non-government) bonds may be re-rated against treasuries from time to time.
In running the fund, we will add seek to add value through active management. This involves the control of the fund's duration and its exposure to different levels of credit risk. In determining duration we take account of likely trends in economies. In bond selection we look for bonds that are cheap relative to the issuer's fundamentals. We may hedge exposures to currencies other than the US$.
Investec has built a team of 24 fixed income managers, analysts and dealers who work closely together to implement a highly structured investment process. The team, whose experience and performance has been recognised with several awards, was recently nominated for Professional Pension's Fixed Interest Manager award. |
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Investec GS US Dollar Bond comment - March 2003
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Thursday, 8 May 2003
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Fund Manager Comment
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| The fund invests in the US dollar denominated bonds, both government and high-grade corporate, agency and mortgage backed securities. Returns are derived both from the income received on investments and from capital gains when selected bond prices rally. Key to the capital gain potential is the manager's strategy with regard to the portfolio's duration and its exposure to the different kinds of bonds. For instance, credit (i.e. corporate and other non-government) bonds may be re-rated against treasuries from time to time.
In running the fund, we will add seek to add value through active management. This involves the control of the fund's duration and its exposure to different levels of credit risk. In determining duration we take account of likely trends in economies. In bond selection we look for bonds that are cheap relative to the issuer's fundamentals. We may hedge exposures to currencies other than the US$.
Investec has built a team of 23 fixed income managers, analysts and dealers who work closely together to implement a highly structured investment process. The team, whose experience and performance has been recognised with several awards, was recently nominated for Professional Pension's Fixed Interest Manager award. |
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Investec GS US Dollar Bond comment - December 2002
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Friday, 7 February 2003
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Fund Manager Comment
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| The fund invests in the US Dollar denominated bonds, both government and high-grade corporate, agency and mortgage backed securities. Returns are derived both from the income received on investments and from capital gains when selected bond prices rally. Key to the capital gain potential is the manager's strategy with regard to the portfolio's duration and its exposure to the different kinds of bonds. For instance, credit (i.e. corporate and other non-government) bonds may be re-rated against Treasuries from time to time.
In running the fund, we will add seek to add value through active management. This involves the control of the fund's duration and its exposure to different levels of credit risk. In determining duration we take account of likely trends in economies. In bond selection we look for bonds that are cheap relative to the issuer's fundamentals. We may hedge exposures to currencies other than the US$.
Investec has built a team of 22 fixed income managers, analysts and dealers who work closely together to implement a highly structured investment process. The team's expertise in managing global - and regional -fixed income portfolios was recognised by International Money Marketing, who voted Investec Fixed Income Manager of the year in 2000. |
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Investec GS US Dollar Bond comment - October 2002
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Monday, 25 November 2002
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Fund Manager Comment
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| The Fund invests in US Treasuries and high grade US$ denominated non-government bonds (e.g. corporate, agency and mortgage backed securities). Performance comes from the overall movements in bond prices and income from these investments. It also comes from the way in which the fund managers structure the portfolio in terms of duration and exposure to the different kinds of bonds. For instance, credit (i.e. corporate and other non-government) bonds may be re-rated against Treasuries from time to time. The fund managers will also seek to benefit from this. In running the Fund, the fund managers will add seek to add value through active management. This involves the control of the Fund's duration and its exposure to different levels of credit risk. In determining duration the fund managers take account of likely trends in economies. In stock selection the fund managers look for bonds that are too cheap relative to the issuer's fundamentals. The fund managers may hedge exposures to currencies other than the US$. Investec has built a team of 22 fixed income managers, analysts and dealers who work closely together to
implement a highly structured investment process. The team's expertise in managing global - and regional - fixed income portfolios was recognised by International Money Marketing, who voted Investec Fixed Income Manager of the year in 2000. |
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Investec GS US Dollar Bond comment - September 02
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Wednesday, 20 November 2002
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Fund Manager Comment
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| The Fund invests in US Treasuries and high grade US$ denominated non-government bonds (e.g. corporate, agency and mortgage backed securities). Performance comes from the overall movements in bond prices and income from these investments. It also comes from the way in which we structure the portfolio in terms of duration and exposure to the different kinds of bonds. For instance, credit (i.e. corporate and other non-government) bonds may be re-rated against Treasuries from time to time. We will also seek to benefit from this.
In running the Fund, we will add seek to add value through active management. This involves the control of the Fund's duration and its exposure to different levels of credit risk. In determining duration we take account of likely trends in economies. In stock selection we look for bonds that are too cheap relative to the issuer's fundamentals. We may hedge exposures to currencies other than the US$.
Investec has built a team of 22 fixed income managers, analysts and dealers who work closely together to implement a highly structured investment process. The team's expertise in managing global - and regional - fixed income portfolios was recognised by International Money Marketing, who voted Investec Fixed Income Manager of the year in 2000. |
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Investec GS US Dollar Bond comment - June 2002
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Monday, 9 September 2002
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Fund Manager Comment
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| June was a positive month for US Treasuries as investors sought "safe haven" investments at a time of volatile stockmarkets and/or fretted about the outlook for the global economy. The consensus of opinion is that the Federal Reserve will lift the Federal Funds rate by only 0.25% between now and the end of 2002. Yields on 30-year and two-year US Treasuries fell by 0.11% and 0.38% respectively. Agencies performed in line with Treasuries over the month, while corporate bonds were sold down sharply on concerns over corporate accounting issues, which had been prompted by the highly publicised problems of Worldcom.
The Fund outperformed its benchmark by a significant margin during the month. The Fund retained longer-than benchmark duration. During June, your Adviser reduced the Fund's allocation to Agency issues, which had performed well, to a modest level. The Fund had no exposure to corporate bonds and was, therefore, able to escape the volatility of that asset class completely unscathed.
Your Adviser remains optimistic about the outlook for US Dollar bonds. Until yields fall to levels at which they appear not to be good value, or new information emerges about the economy, the Fund will retain longer-than-benchmark duration. |
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Investec GS US Dollar Bond comment April 2002
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Monday, 10 June 2002
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Fund Manager Comment
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| US Treasury bonds performed well during April. The yields on the 30-year and two-year bonds fell by 0.21% and 0.49% respectively. A number of economic indicators were weaker than had been expected. Money market commentators looked for a slower increase in interest rates than they had previously. Federal Reserve Chairman Alan Greenspan indicated that a rise in the Federal Funds rate was not imminent.
The Fund outperformed the index by a substantial margin during the month. In part this was due to the Fund's having significantly longer-than-index duration, which enabled it to benefit from the fall in bond yields. In addition, the Fund had a substantial exposure (i.e. 46% of Net Assets at the end of the month) to Agency bonds, which outperformed.
Your Adviser believes that the rally in the US Treasury market can continue. Treasuries were oversold earlier in the year and still represent good value. Many market participants are underweight. The average duration of the Fund stands at a little over 11 years, and is significantly longer than that of the benchmark index (5.75 years). Given that Agency bonds have rallied strongly, and no longer offer compelling value relative to Treasuries, the Fund may take profits in this sector in coming months. |
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Investec GS US Dollar Bond comment - March 2002
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Tuesday, 14 May 2002
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Fund Manager Comment
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| March was a difficult month for investors in US Treasury bonds. Yields on 30-year Treasuries rose by 0.37%, while yields on 2-year Treasury notes lifted by 0.65%. These moves were a response to the mounting signs of economic recovery in the USA. The Federal Open Markets Committee moved its monetary policy bias from easing to neutral. Investors shifted capital away from “safe haven” assets such as government bonds and into riskier areas. Quality corporate bonds, with comparatively low A and BBB ratings outperformed
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The Fund underperformed the benchmark index through the month. This was because it had had longer-than-benchmark duration. Your Adviser cut the Fund’s duration as the prices of bonds fell. However, towards the end of March, the Fund’s duration was increased once more. At the end of March, the Fund’s duration was 10 years, or considerably longer than the Index’s six years.
Your adviser considers that the more positive outlook for the US economy has been discounted by bond investors. Treasury bonds have been oversold and should rise in price in the short-to-medium term. The Fund is positioned to benefit from this. 30% of the Fund is invested in Agency (Fannie Mae and Freddie Mac) securities, which appear to offer good value. |
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Investec US Dollar Bond 1st in Raging Bull
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Monday, 4 February 2002
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Media Comment
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| At the AUT/Personal Finance Raging Bull awards held in Johannesburg on the 28 January 2002, the Investec US Dollar Bond Fund was awarded the prize for the best performing foreign collective investment scheme fund for the three years ending 31 December 2001 within the Offshore-Fixed Interest sector. |
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