Will the time ever be right to invest in Japan?
16 January, 2008Monolines the next shoe to drop?
1 February, 2008Roadtest
Credit Suisse International Fixed Income Fund
Solid fund in a dicey asset class
Performance
Morningstar Research tracks 63 global fixed income funds, and the Credit Suisse one (in the form sold through Credit Suisse’s Select Investments range) ranks seventh over the year to December 31, returning 7.44% (the wholesale version, which you might access through a platform, ranks 12th with 6.64%). Over three years, the Select Investments version ranks 12th with 5.57% a year, and 5.84% a year over five years is healthy too.
Holdings
As of September 30, the last time it was disclosed, the fund had the biggest chunk of its assets, 41.4%, in Europe and the UK. The US accounted for 33.1% and Japan 25.5%. So it’s really only looking at developed world bonds rather than the higher but riskier returns available in the emerging markets. At any given time the fund can put up to 25% of its money in cash.
Experience
Security selection is made not in Sydney but in Zurich. The fund’s been going a long time, and is one of only 26 global fixed income investment options tracked by Morningstar to have a seven year track record; in fact, it’s been going since 1993.
Fees
The wholesale version, which you can only access if you’re putting $100,000 into Credit Suisse’s funds, charges 0.56% management costs, and a buy/sell spread of 0.15%. You’re more likely to get this through a platform, in which case you’ll pay a platform fee too. If you buy through the Select Investments range, the fee jumps to 0.95%.
Gripes
A horrible time for global debt markets anyway, with the sub-prime problems in the US and the knock-on effects on global markets. Does it really make sense to have no exposure to Asia in such a fund?
Verdict
Weathering the storm pretty well so far
