Reported 8 months ago
According to data from the Investment Trust and Consulting Association's website as of the end of May 2024, the New Fubon Global Bond Fund has been rapidly growing in size since the beginning of the year, continuing to attract inflows of funds. It is expected that as the interest rate cut approaches in the second half of the year, the demand for global bond fund subscriptions will increase. Despite the recent tightening of investment-grade bond spreads, the prices of global risky assets have been volatile at high levels, highlighting the risk of market fluctuations. By positioning in the global bond fund at this stage, investors not only benefit from attractive bond yields but also can mitigate downside risks in the stock market turmoil. The New Fubon Global Bond Fund mainly focuses on investment-grade bonds rated BBB, aiming for both yield and credit rating considerations. By analyzing past Federal Reserve interest rate cut records, the sweet spot for global bond fund investment is during the 'wait-and-see' period before the rate cut. Investors who position themselves early in the bond market are likely to gain opportunities for bond capital gains. As of the end of May, the New Fubon Global Bond Fund had a duration of 6.84 years, with a weighted average credit rating of BBB+, and 89.8% of the bond portfolio allocated to BBB-rated bonds (41.31% in BBB, 13.06% in BBB+, and 16.81% in BBB-). Additionally, AA and A-rated bond allocations accounted for 17.36% of the total bond holdings, with no non-investment-grade bonds held by the fund. The fund's main investments are concentrated in the United States, with industries focusing on consumer goods, industry, energy, technology, telecommunications, and finance. Looking ahead to the second half of the year, Fubon Mutual Fund Company believes that the global bond market still faces geopolitical and other volatility risks. Investors are advised to patiently position themselves in global quality bond funds for medium to long-term allocations. Through an experienced bond team, constructing a stable bond portfolio to accumulate steady bond income, capturing opportunities for bond capital gains, and mitigating downside risks during market fluctuations will lead to success in the major bond market trends in the latter half of the year.
Source: YAHOO