For individual investors in the UK

Absolute Return Fixed Income Fund

A strategy that seeks positive returns above cash by investing primarily in fixed income securities and associated derivatives

ISIN
GB00BGK8VR99

NAV
GBP 101.78p
As of 01/07/2022

1-Day Change
GBP 0.10p (0.10%)
As of 01/07/2022


Morningstar ratings are based on the representative share class of this fund and are dated to the last month-end upon availability from Morningstar.

Overview

INVESTMENT OBJECTIVE

The Fund aims to generate a positive return (more than zero), after the deduction of costs and charges, over a rolling 12 month period. An absolute return performance is not guaranteed over this specific, or any other, time period and consequently capital is in fact at risk.
Performance target: To outperform the ICE Bank of America 3 month Sterling Government Bill Index by at least 2% per annum, before the deduction of charges, over any 5 year period.

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The Fund invests at least 80% of its assets in a global portfolio of bonds of any quality, including high yield (non-investment grade) bonds and asset-backed and mortgage-backed securities, issued by governments or companies. The Fund may invest directly or via derivatives (complex financial instruments).
The Fund may also invest in other assets including bonds of other types from any issuer, Collective Investment Schemes (including those managed by Janus Henderson), preference shares, cash and money market instruments.
In certain market conditions, the Fund may invest more than 35% of its assets in government bonds issued by any one body. The Fund will not invest more than 15% of its assets in high yield (non-investment grade) bonds and will never invest in bonds rated lower than B- or B3 (credit agency ratings), or if unrated deemed to be of a comparable quality by the investment manager.

The investment manager may use derivatives (complex financial instruments), including total return swaps, with the aim of making investment gains in line with the Fund's objective, to reduce risk, to manage the Fund more efficiently, or to generate additional capital or income for the Fund.

The Fund is actively managed with reference to the ICE Bank of America 3 month Sterling Government Bill Index as this forms the basis of the Fund's performance target. The investment manager has a high degree of freedom to choose individual investments for the Fund.

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The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested.
Potential investors must read the prospectus, and where relevant, the key investor information document before investing.
This website is a Marketing Communication and does not qualify as an investment recommendation.

Investment into the fund will acquire units / shares of the fund itself and not the underlying assets owned by the fund.

ABOUT THIS FUND

  • A cash-plus strategy designed to seek a steady income stream and higher returns than a money market fund
  • Places a high priority on seeking capital preservation
  • A potential diversifier within fixed income allocation
Past performance does not predict future returns. 
 

PORTFOLIO MANAGEMENT

Jason England

Portfolio Manager

Industry since 1994. Joined Firm in 2017.

Daniel Siluk

Portfolio Manager

Industry since 2004. Joined Firm in 2015.

Performance

Past performance does not predict future returns. All performance data includes both income and capital gains or losses and reflects the deduction of any ongoing charges or other fund expenses.
Discrete Performance (%)
As of 31/03/2022
I Acc (Net) ICE BofA Sterling 3 Month Treasury Bill
  
Mar-2021 - Mar-2022 Mar-2020 - Mar-2021 Mar-2019 - Mar-2020 Mar-2018 - Mar-2019 Mar-2017 - Mar-2018
I Acc (Net) -1.46 1.55 2.07 - -
ICE BofA Sterling 3 Month Treasury Bill 0.09 0.02 0.84 - -
 
Mar-2021 - Mar-2022 Mar-2020 - Mar-2021 Mar-2019 - Mar-2020 Mar-2018 - Mar-2019 Mar-2017 - Mar-2018
I Acc (Gross) -0.91 2.12 2.65 - -
ICE BofA Sterling 3 Month Treasury Bill + 2.00% 2.09 2.02 2.88 - -

Index Description

The ICE Bank of America 3-Month Sterling Government Bill Index is an unmanaged index that is comprised of a single UK Gilt issue with approximately three months to final maturity. It forms the basis of the Fund's performance target and provides a useful comparison against which the Fund's performance can be assessed over time.

Cumulative & Annualised Performance (%)
As of 31/05/2022
I Acc (Net) ICE BofA Sterling 3 Month Treasury Bill
  
  Cumulative Annualised
1MO YTD 1YR 3YR 5YR 10YR Since Inception
25/02/2019
I Acc (Net) -0.09 -1.58 -2.00 0.45 - - 0.64
ICE BofA Sterling 3 Month Treasury Bill 0.11 0.17 0.18 0.30 - - 0.34
 
  Annualised
3YR 5YR 10YR Since Inception
25/02/2019
I Acc (Gross) - - - 1.20
ICE BofA Sterling 3 Month Treasury Bill + 2.00% - - - 2.35

Index Description

The ICE Bank of America 3-Month Sterling Government Bill Index is an unmanaged index that is comprised of a single UK Gilt issue with approximately three months to final maturity. It forms the basis of the Fund's performance target and provides a useful comparison against which the Fund's performance can be assessed over time.

Calendar Year Returns (%)
As of 31/12/2021
I Acc (Net) ICE BofA Sterling 3 Month Treasury Bill
2021 2020 2019 2018 2017
I Acc (Net) -0.87 2.88 - - -
ICE BofA Sterling 3 Month Treasury Bill -0.01 0.30 - - -
 
2021 2020 2019 2018 2017
I Acc (Gross) -0.32 3.46 - - -
ICE BofA Sterling 3 Month Treasury Bill + 2.00% 1.99 2.31 - - -

Index Description

The ICE Bank of America 3-Month Sterling Government Bill Index is an unmanaged index that is comprised of a single UK Gilt issue with approximately three months to final maturity. It forms the basis of the Fund's performance target and provides a useful comparison against which the Fund's performance can be assessed over time.

FEE INFORMATION
Initial Charge 0.00%
Annual Charge 0.45%
Ongoing Charge
(As of 31/12/2021)
0.56%

Portfolio

Top Holdings (As of 31/05/2022)
% OF FUND
New Zealand Government Bond 0.50% 2024 2.12
Lonsdale Finance Pty 2.10% 2027 2.08
Wells Fargo 3.70% 2026 1.94
Westpac Banking 2.262% 2031 1.93
Commonwealth Bank of Australia 2.3647% 2031 1.90
JPMorgan Chase 0.969% 2025 1.59
Charter Hall LWR Pty 2.086% 2028 1.49
Athene Global Funding 1.716% 2025 1.47
Australia & New Zealand Banking Group 2.95% 2030 1.45
DBS Group 3.3226% 2028 1.40

Documents

  • ​The value of the Funds and the income from them is not guaranteed and may fall as well as rise. You may get back less than you originally invested.
  • ​Past performance does not predict future returns
  • Third party data is believed to be reliable, but its completeness and accuracy is not guaranteed.
  • An issuer of a bond (or money market instrument) may become unable or unwilling to pay interest or repay capital to the Fund. If this happens or the market perceives this may happen, the value of the bond will fall.
  • When interest rates rise (or fall), the prices of different securities will be affected differently. In particular, bond values generally fall when interest rates rise. This risk is generally greater the longer the maturity of a bond investment.
  • Callable debt securities, such as some asset-backed or mortgage-backed securities (ABS/MBS), give issuers the right to repay capital before the maturity date or to extend the maturity. Issuers may exercise these rights when favourable to them and as a result the value of the fund may be impacted.
  • The Fund may use derivatives towards the aim of achieving its investment objective. This can result in 'leverage', which can magnify an investment outcome and gains or losses to the Fund may be greater than the cost of the derivative. Derivatives also introduce other risks, in particular, that a derivative counterparty may not meet its contractual obligations.
  • If the Fund holds assets in currencies other than the base currency of the Fund or you invest in a share/unit class of a different currency to the Fund (unless 'hedged'), the value of your investment may be impacted by changes in exchange rates.
  • When the Fund, or a hedged share/unit class, seeks to mitigate exchange rate movements of a currency relative to the base currency, the hedging strategy itself may create a positive or negative impact to the value of the Fund due to differences in short-term interest rates between the currencies.
  • Securities within the Fund could become hard to value or to sell at a desired time and price, especially in extreme market conditions when asset prices may be falling, increasing the risk of investment losses.
  • The Fund could lose money if a counterparty with which the Fund trades becomes unwilling or unable to meet its obligations, or as a result of failure or delay in operational processes or the failure of a third party provider.
  • The Fund invests in Asset-Backed Securities (ABS) and other forms of securitised investments, which may be subject to greater credit/default, liquidity, interest rate and prepayment and extension risks, compared to other investments such as government or corporate issued bonds and this may negatively impact the realised return on investment in the securities.
  • Funds incur costs as a necessary part of buying and selling the underlying investments, these are otherwise known as portfolio transaction costs, and include charges such as broker commission and Stamp Duty.
  • Before investing in any of our funds you should satisfy yourself as to the suitability and the risks involved, you may wish to consult a financial adviser.
  • If you invest through a third party provider you are advised to consult them directly as charges, performance and terms and conditions may differ materially.