June 2026 data
Fixed Income markets were little changed in June; first selling off in inflationary fears before recovering the second half of the month with U.S. rates rising marginally and European rates falling slightly. Credit spreads continued to take cues from equity markets remained tight throughout the month with very little volatility. The resultant index performance at the end of June was modest: the Bloomberg US Corporate Total Return Unhedged was up 0.2% while the Intermediate Credit Indices rose 0.1%. European credit outpaced its US counterparts with a 0.4% gain on the month., aided by the small fall in European base rates. Given the lack of movement in rates and spreads, High Yield markets were driven by coupon, the Bloomberg Global High Yield index up 0.6% and the Bloomberg Pan-European High Yield index up 0.5%.
Source: Bloomberg as of June 30, 2026
Despite spreads rebounding to tight levels, all-in yields remain at attractive levels for investors, up between 50–60 bps from the beginning of the year. The Persian Gulf conflict has caused forward interest rate expectations to move, with the market now pricing in just under 2 interest rate hikes in both the U.S. and Europe (although it remains an open question if central banks will respond to such supply-led inflationary pressures). The cost of hedging U.S. Dollars for European investors continues to creep downwards, at 1.48% at the time of writing mid-July.
Source: Bloomberg as of June 30, 2026
Past performance does not predict future returns. The careful credit selection within the iMGP US Core Plus Fund has resulted in a portfolio producing yields in line with the Bloomberg US Corporate Total Return Value Unhedged USD, however at almost half the duration. With absolute yields now above 5%, we believe the fund represents an opportunity worth being considered. For European investors, the cost of interest rate hedging continues to decline, and U.S. markets now offer both diversification opportunities and appealing levels of yield in excess of those available from domestic European markets.
| iMGP US Core Plus Fund | Bloomberg Euro Corporate Unhedged EUR | Bloomberg US Corporate Total Return Value Unhedged USD | Bloomberg U.S. Intermediate Credit TR Index Value Unhedged | Bloomberg Swiss Franc Aggregate Total Return Index Value Unhedged CHF | |
|---|---|---|---|---|---|
| Yield to Worst | 5.23 | 3.46 | 5.20 | 4.85 | 0.68 |
| Yield to Worst (EUR Hedged) | 3.73 | N/A | 3.70 | 3.35 | 3.12 |
| Yield to Worst (CHF Hedged) | 1.30 | 1.02 | 1.26 | 0.91 | N/A |
| Modified Duration | 3.85 | 4.60 | 6.91 | 4.19 | 7.36 |
| Market Value | N/A | 3,019,153 | 7,583,770 | 6,095,742 | 464,832 |
| Average Rating | Baa2/Baa3 | A3/Baa1 | A3/Baa1 | A2/A3 | Aa1/Aa2 |
| # Securities | 77 | 4,147 | 8,779 | 6,168 | 1,054 |
Source: Bloomberg as of June 30, 2026
Investing puts your capital at risk: investing in the bond market is subject to risk including interest-rate and credit risk. An increase in the interest rates, a deterioration of the quality of the issuer and/or a default in reimbursing the capital at the maturity date could lead to potential loss of value of the investment. More information on www.imgp.com
Disclaimer:
This is a marketing communication. This is not a contractually binding document, or an information document required by law. Please refer to the prospectus of iMGP and to the key information document (“KID”)/key investor information document (“KIID”) before making any final investment decisions. These documents, as well as the summary of investors’ rights, are available in English on the website www.imgp.com and the iMGP offices at 5 Allée Scheffer, L-2520 Luxembourg. The information or data contained herein does not in any way constitute an offer or a recommendation or advice to buy or sell shares in the Fund’s units. The value of the units mentioned may fluctuate and investors may not recover all or part of their initial investment. The information in this e-mail and any attachments may be privileged and confidential and is intended for the exclusive use of the addressee. Any other usage is strictly prohibited. If you have received this e-mail and any attachments in error, please contact us immediately and delete them. More information on www.imgp.com.
