Strategic Bond Fund

A world bond strategy seeking the best opportunities throughout the economic cycle.

ISIN
GB0007533820

NAV
GBP 371.30p
As of 03/06/2020

1-Day Change
GBP 1.70p (0.46%)
As of 03/06/2020

Morningstar Rating

Morningstar Analyst Rating
Morningstar Analyst Rating				 Silver


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 provide a return, from a combination of income and capital growth over the long term.
Performance target: To outperform the IA Sterling Strategic Bond sector average, after the deduction of charges, over any 5 year period.

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The Fund invests in a global portfolio of bonds of any quality, including high yield (non-investment grade) bonds, issued by governments or companies. Where investments are made in assets in currencies other than the base currency of the Fund, the Fund will seek to hedge those assets back to the base currency to remove the risk of currency exchange rate movements.
The Fund may also hold other assets including bonds of other types from any issuer, 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 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 or to manage the Fund more efficiently.
The Fund is actively managed with reference to the IA Sterling Strategic Bond sector average, which is based on a peer group of broadly similar funds, as this forms the basis of the Fund’s performance target. The investment manager has complete freedom to choose individual investments for the Fund and to vary allocations between different types of bonds.

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The value of an investment and the income from it can fall as well as rise as a result of taxation arrangements or 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 for promotional purposes and does not qualify as an investment recommendation.

ABOUT THIS FUND

  • Seeks to provide returns through a combination of income and capital growth.
  • Actively managed, the portfolio can be adapted quickly to suit the prevailing market environment.
  • Aims to keep risk and liquidity at a desired level consistent with the fund's risk profile.
Past performance is not a guide to future performance. 
 

AWARDS

Ratings for this fund include:

PORTFOLIO MANAGEMENT

Jenna Barnard, CFA

Co-Head of Strategic Fixed Income | Portfolio Manager

Industry since 2001. Joined Firm in 2002.

John Pattullo

Co-Head of Strategic Fixed Income | Portfolio Manager

Industry since 1993. Joined Firm in 1997.

Performance

Past performance is not a guide to future performance. 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 31/03/2020
I Acc Gross IA Sterling Strategic Bond
 
Quarter End
As of 31/03/2020
Mar-2019 - Mar-2020 Mar-2018 - Mar-2019 Mar-2017 - Mar-2018 Mar-2016 - Mar-2017 Mar-2015 - Mar-2016
0.67% 4.02% 2.34% 6.09% -0.56%
IA Sterling Strategic Bond -2.13% 2.06% 2.25% 7.54% -1.41%

Peer Group Description

The Investment Association (IA) groups funds with similar geographic and/or investment remit into sectors. The Fund's ranking within the sector (as calculated by a number of data providers) forms the basis of the Fund's performance target and can be a useful performance comparison against other funds with similar aims.

Cumulative & Annualised Performance (%)
As of 30/04/2020
I Acc Gross (Net) IA Sterling Strategic Bond
 
  Cumulative Annualised
1MO YTD 1YR 3YR 5YR 10YR Since Inception
02/05/2000
I Acc Gross (Net) 5.94% 1.34% 6.78% 4.01% 3.71% 4.79% 4.68%
IA Sterling Strategic Bond 4.10% -3.33% 1.20% 1.87% 2.52% 4.23% 4.40%

Peer Group Description

The Investment Association (IA) groups funds with similar geographic and/or investment remit into sectors. The Fund's ranking within the sector (as calculated by a number of data providers) forms the basis of the Fund's performance target and can be a useful performance comparison against other funds with similar aims.

FEE INFORMATION
Initial Charge 0.00%
Annual Charge 0.60%
Ongoing Charge
(As of 31/12/2019)
0.68%

Portfolio

Top Holdings (As of 30/04/2020)
% OF FUND
Alphabet 1.998% 2026 2.15
Amazon.com 3.15% 2027 1.95
Microsoft 3.30% 2027 1.35
Visa 2.75% 2027 1.20
Mastercard 2.10% 2027 1.14
salesforce.com 3.70% 2028 1.13
Charter Communications Operating 4.20% 2028 1.04
United States Treasury Inflation Indexed Bonds 0.125% 2030 0.89
Orange 2.00% 2029 0.87
Barclays Bank 6.278% 2168 0.86

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 is not a guide to future performance.
  • 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.
  • The Fund invests in high yield (non-investment grade) bonds and while these generally offer higher rates of interest than investment grade bonds, they are more speculative and more sensitive to adverse changes in market conditions.
  • If a Fund has a high exposure to a particular country or geographical region it carries a higher level of risk than a Fund which is more broadly diversified.
  • 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.
  • When the Fund, or a currency hedged share class of the Fund (with ‘Hedged’ in its name), seeks to mitigate (hedge) exchange rate movements of a currency relative to the Fund’s 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.
  • When the Fund, or a currency hedged share class of the Fund (with ‘Hedged’ in its name), seeks to mitigate (hedge) exchange rate movements of a currency relative to the Fund’s 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.
  • Some or all of the Annual Management Charge and other costs of the Fund may be taken from capital, which may erode capital or reduce potential for capital growth.
  • The Fund could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Fund.
  • 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.
  • For detailed product information including the risks associated with investing please read the relevant Prospectus or Annual Report.
  • 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.
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