Forum Topics Gov bond Markets
Chagsy
2 years ago

If people are interested in learning how to construct a balanced bond portfolio, I received this invitation to an educational event. For Brisbane residents.

They probably hold similar events in other centres

Clearly, FIIG will be hoping you sign up to their services but could be useful all the same.

http://pages.fiig.com.au/Portfolio_Construction_Brisbane_April_20_2023.html


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Chagsy
2 years ago

If people are interested in learning how to construct a balanced bond portfolio, I received this invitation to an educational event. For Brisbane residents.

They probably hold similar events in other centres

Clearly, FIIG will be hoping you sign up to their services but could be useful all the same.

http://pages.fiig.com.au/Portfolio_Construction_Brisbane_April_20_2023.html


5
Chagsy
2 years ago

If people are interested in learning how to construct a balanced bond portfolio, I received this invitation to an educational event. For Brisbane residents.

They probably hold similar events in other centres

Clearly, FIIG will be hoping you sign up to their services but could be useful all the same.

http://pages.fiig.com.au/Portfolio_Construction_Brisbane_April_20_2023.html


3
Rapstar
2 years ago

Looking Australian Govt ETFs, There are:

1) Vanguard VGB ETF (Aust. Govt. Bond Index ETF) - Key features:

  • Effective duration: 5.7 years
  • Running yield: 2.79 %
  • Mgt fee: 0.2%

2) Betashares AGVT ETF (Australian Govt. Bond ETF)

  • Effective duration: 7.8 years
  • Running yield: 3.1% approx.
  • Mgt fee: 0.22%


Bonds have had possibly the worst 2 years in recorded history. Are we seeing a reversal? Bonds will eventually likely rally over the next 12 months or so. I am waiting for the next CPI print, but may open a small starter position on the longer duration, AGVT. I am going longer duration, as I am looking for a capital gain on a fall in the longer term yields.

With the Oz yield curve remaining uninverted, we may see the yields continue to be pushed upwards. This the big risk which is holding me back...

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Remorhaz
2 years ago

Morningstar also rates XARO (ActiveX Ardea Real Outcome Bond ETF - and the fund behind it) - note that this fund is not like traditional bond funds/ETF's and is more unique in that it targets a zero duration strategy (looking to make alpha on "mispricing" of bonds rather than capitalising on yield or duration)

Another more traditional bond ETF I often see recommended (& Morningstar gives them both a Gold rating) is IAF (from iShares/Blackrock) (or VAF - the Vanguard equivalent) Australian Core Composite Bond ETF (the MER on IAF is cheaper @ 0.10% vs VAF 0.15%) - both track the Bloomberg AusBond Composite 0+ Yr Index

Note: Whilst they do have a hefty overall weighting towards Australian Government bonds (mostly commonwealth treasuries but also state govt bonds) it also has some allocation to high quality corporate bonds (< 10% but it's there) - this "juices" the yield a little and also reduces the effective duration (5.19 years) but also reduces the overall average credit rating a little too


DISC: Hold XARO and IAF in RL

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