What is the fund objective?
The Ashburton Global Bond ETF provides investors with efficient exposure to the global bond market by tracking the Citi World Government Bond Index (WGBI). This will be the first global bond ETF listed locally on the JSE. The WGBI measures the performance of fixed-rate, local currency and investment grade sovereign bonds. It consists of countries that meet specific criteria for market size, credit quality, and barriers to entry. The WGBI is a widely used benchmark that currently comprises sovereign debt from over twenty countries, including the United States, United Kingdom, Canada, Germany, Japan, Australia and France.
What is the investment process?
The Ashburton Global Bond ETF will invest into the underlying bonds directly and not via any synthetic exposures. The ETF will be run on an optimised basis, which takes into account country exposure, maturity bucket exposure, duration and convexity vs the benchmark in order to ensure trading efficiencies are realised.
Why invest in in this fund?
- The fund offers direct exposure to global investment grade fixed income securities, and through the holding of the fund, investors can access bonds that are diversified among issuers, region, credit quality and term structure.
- The fund will comprise of fixed coupon rate bonds as opposed to floating rate securities. This should provide investors with a steady and predictable stream of income.
- The Citi Global Government Bond Index boasts exposure to some of the well-respected countries globally, with stable monetary policies and superior sovereign debt ratings.
- The fund has exposure to emerging market countries, which have experienced tighter monetary policies over the past few years, benefiting investors in search for higher yielding assets.
- Exposure to only investment grade bonds will ensure lower default risk.
- First JSE listed ETF providing investors with access to global bond markets.
- The ETF is not a typical feeder fund as it will hold underlying physical bonds.
- Local investors will not have to use their offshore allowance to gain further access to markets ex-SA.
How do I invest?
Click here to find out how to invest in this fund.
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Annualised performance since 2018:
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