Fund Rationale: AB Global Income Portfolio Fund

AB Global Income Portfolio Fund(the "Fund")
SGD Hedged Class I2 Accumulation Shares (ISIN: LU1720896072)
Fund Manager Page

Endowus has selected the Fund as its highly experienced investment team offers a diversified portfolio of global multi-sector debt securities managed systematically to achieve its objective of providing attractive income and capital appreciation by balancing duration and credit risk.

Key Information

Fund Objective: Seeks high total investment return through current income and capital appreciation by investing primarily in fixed-income securities of issuers located throughout the world, including developed and emerging markets, and by applying a global multi-sector approach.

Suitability: Investors who have medium to higher risk tolerance, and are seeking the medium to long-term rewards of global fixed-income investment.

* Total Fund-level Fees include fund management fee of 0.55%.
** Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 4 May 2017
Share Class Inception: 29 November 2017
Benchmark: Bloomberg Barclays Global Aggregate Bond

Fund AUM: SGD 140m
Source: MorningStar as of 27 May 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:

Sector Allocation:

Source: MorningStar as of 31 March 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.

Selection Criteria

Endowus has selected the AB Global Income Portfolio Fund as its highly experienced investment team offers a diversified portfolio of global multi-sector debt securities. These include bonds in developed and emerging markets, managed systematically for the long term to achieve its objective of providing attractive income and capital appreciation by balancing duration and credit risk.

Using the time-tested credit barbell approach, which is also in use for other popular AB Fixed Income funds, the Fund allocates a maximum of 50% in below-Investment Grade rated bonds, including High Yield Corporates, Securitised Assets, and Emerging Market Debt, and balances the remainder with high-quality Treasury issues to maintain a balance between credit and interest-rate exposure. The investment team works with a strong diversification mandate, and the resulting portfolio is designed to mitigate drawdowns and volatility while opportunistically harvesting yield from various sources and generating favourable total return in all market environments.

The Strategy is managed by a highly experienced and stable portfolio management team with an average experience of nearly 25 years, consisting of 4 Lead Portfolio Managers and 5 Senior Portfolio Managers who act as sector specialists. The team is further supported by AB’s strong credit and quant research analysts utilising robust technological platforms to facilitate an efficient decision making process. The overall investment process systematically reviews quantitative and fundamental research output through a top-down macro and bottom-up sector lens, with ESG consideration implemented as an added benefit. 

The Fund has also shown favourable performance since inception, placing itself as one of the best funds in terms of total returns among peers and therefore fulfilling its investment objective. Additionally, as the Fund tends to be overweight towards North America (i.e. US, Canada) and Latin America, and underweight in Europe and Asia compared to its benchmark (Bloomberg Barclays Global Aggregate Bond), we think that the Fund may make a good diversifier to a conventional global fixed income play.


Updated by Endowus: May 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.