Tq Terence,... I'm really a enthusiast of High Yield Bonds ... To me, the behaviour of High Yield Bonds mimics equities more than it mimics original bonds. So, HIgh Yield BOnds will still have a chance of doing well even after the rate hike.

ANother opinion that I'd like to forward is,...I'm sure you've heard that the MAS has decided to impose a flat tier of debt-to-asset leverage of 45% for ALL REITs from January 2016. If a REIT issues bonds to raise funds, this issue will not be counted towards this 45%.

Hence, S-REITs will start to issue perpetual bonds soon to raise funds. The coupon yield given out by the S-REITs will deefinitely need to be attractive in order to attract investors.

Hence, we are already starting to move towards an environment of high yield bond nature,...if the bond issues carry ratings of triple-B and below.

Asiapac funds laosai-ing again

What are the developed market/global equity funds you guys invested in?

Personally I'm not so keen on high yield bonds because it defeats the purpose of holding bonds. I only held a little bit through the RHB Asian Total return which fees into United Asian bond fund which feeds about 40% into United Asian high yield

Well,... we just have to wait to see the final ending... The Allianz US High Yield Bond Fund dropped again on Nov 16, the day the mkt re-opened after the Paris Attacks. The nav on Nov 16 was USD 8.30 per unit.

most of my funds were in red. close eyes.

PineBridge India Equity A5 SGD dropped ard 8%. wonder i should top up?

https://secure.fundsupermart.com/main/article/--11070
Announcement: Reduction in sales charges for ALL investors!

The platform fee reduction is not so significant.... but still, better than nothing

Hi...is it the Sales Charge that is being reduced ot the Platform Fee that is being reduced ? These are diff fees.

Hi dasecret,... why do you say that it defeats the purpose of holding bonds ? For investors who are focussed onto FIxed Income instruments, these yield-instruments should be concentrated upon, and having said this,...a Fixed Income investor should do his utmost best to search out the best performing high yield bond funds, don't you think so ?

Simple rule in finance - high risk high return; no bond issuers are going to give you higher yield than they need to; when they do, it's usually because their credit rating is not so good, or the bond maturity is much longer and hence more uncertainty. You would notice the volatility of high yield bonds to be higher than short term bonds and of course money market funds; so that's where risk and return correlates

So for me, I diversify my risk by having a combination of equity funds and bond funds; and the objective of having bond funds is to reduce the overall portfolio risk; so if I go for high yield bonds, the risk is not much lower than equity and my overall portfolio risk would be higher than what I can stomach

Hey, it sounds like you invest quite a bit of money. I think you should start reading up on basics in finance instead of relying on what the sales advisors tell you. The FSM malaysia thread is not a bad place to start
No offence

Click the link posted by @yck1987
Both sales charge and platform fee is reducing

No offence too - I carry reasonable amounts of investment knowledge, which brings me to want to tap your opinions ! Look at my motto at the bottom - I use discussions and debates rather than pure reading-up,... and I believe you do the same too. YOU don't read only too,... so, we have mutual strategies here. You just commented with something that both of us are doing.

As interest rates start to increase, high yield bonds would want to give out higher and higher coupons. Sure - high risk, high returns, but I wouldn't term high yield bonds as being of high-risk instruments. Some say high yield bonds mimic equities, some say they mimic bonds. I say I have benefited over 8 years plus with Euro High Yield Bonds.

I appreciated your opinions on your risk-return strategies, which also mapped out the amount of portfolio risk that you are willing to carry.

Correction - for holders of Bond Funds, there is NO reduction. It remains at 0.05% per quarter.

There is reduction for holders of Equity and Balanced Funds,... but for those who prefer DIRECTLY into equities instead of buying Equity Funds, then there is no benefit here.

Can you share which euro high yield bond that you are singing praises on? I used the fund selector and the highest 10 year annualised return for European high yield bond fund is FIDELITY EUROPEAN HIGH YIELD A EUR with 3.32% and FIDELITY EUROPEAN HIGH YIELD AMDIST EUR with 3.31%

UBS (LUX) BOND FUND - EURO HIGH YIELD USD-H P-MDIST has high 2 year annualised return of 9.83%, but in SGD terms only, mainly because it's USD hedged and the gain is from USD strengthening

Using the same tool, I then look at the 10 year annualised returns of european equity funds
THREADNEEDLE EUROPEAN SELECT CL 1 NET ACC EUR 8.6%; however, in SGD terms the return is only 5.47%, again due to forex

I hope we dont have to go through the whole yield does not equate returns saga

In terms of choices in bond, there is the same alternative available - FSM SG offers bonds too; but I'm not a HNWI and can't afford any of those non-retail bonds

I have been invested into the FIDELITY EUROPEAN HIGH YIELD AMDIST EUR since 2006/7. I constantly refer to this because of its performance, and the fact that this HY Bond Fund has withstood the test of time, and the test of having been through the Global Financial Crisis, the EU Crisis, the Greek Crisis and now still paying out monthly dividends as the US is about to increase its interest rate.

My Buy Price was at Euro 11.025. The nav is now higher than 11.025,... and though it has dropped to below 11.00 during the EU crisis, it has recovered it price.

I would appreciate your opinions on this HY bond funds,... since I am here to discuss.

I do not go for single-issuer HY bonds too. I would rather have a fund mgr manage the bonds under the umbrella for me, with constant balancing and rebalancing,... and am ready to pay them annual fees. They have more news, and they would know which issuers have a higher exposures towards defaults.

I have not purchased any single bonds with Fitch Ratings above BBB, ie investment grade bonds. The yields are too low for my liking.

All-in,... I carry a suspicion that there are really HY Bond Funds that have great qualities, and that will be able to sustain through thick and thin across all economic cycles. One particular HY Bond may fail, but a group of HY Bonds under a fund may be able to survive under any conditions. It is this fund that I am searching for.

The High Yield Bond Fund by the name of Third Avenue has jammed redemptions a few days ago. Many HY investors subsequently rushed for redemptions against their HY holdings too.

However, the HY bond funds that some Fund Mgrs issued have stood their grounds,... let them fall,...

I am thinking of slowly buying into the USD High Yield Bond Funds again, with the slowing down of HY bond default news this week, and since the Feds has finally removed the uncertainty of a rate hike by upping 0.25%.

The price could be nearing the bottom,.... wait some more and the price culd start turning around.

Anybody buying into such funds ? FSM Sgp said in a very recent 'Idea of the Week' article that : ....with economic fundamentals looking robust and in light of the Fed's assessment of the US economy, we expect credit spreads to tighten, making high yield bonds favourable in this mkt environment.

Any opinions please ?

Hansel

In Msia, I also bought the RHB Asian Total Return fund which feed into United Asian Bond fund.

I think can slowly topup this United Asian Bond and United Asian HY (giving quite high dividend on monthly basis)

Good luck

Based on the name : United Asian HY, it looks to me that this fund invests into HY bonds issued by Asian non-investments grade issuers. Many of these issuers would be from emerging market countries. I really don't have a good feeling with the EMs now, what's more with the EM non-investment grade bond issuers. As liquidity tightens, more funds will exit EMs, and return to the US. All EM bond issuers will be affected, especially with EM bond issuers who sold USD-denominated bonds, and non-investment grade bonds.

But that's just me,... I have been told by my RM to diversify my bond holdings into EM bonds,... but I've chosen not to.

My theory above will be true (in my opinion),... only if the Feds continue to hike rates, and DO NOT reverse the hikes.

FSM SG normally got investment fair like they do in MY?

yes they do.
see this if you want.....
SG
https://secure.fundsupermart.com/main/artic...-in-2016--11118
HK
http://www.fundsupermart.com.hk/hk/main/re...articleNo=10957