Aegon Ethical Corporate Bond A

Invests in quality bonds issued by socially-aware companies.

  • 121.03p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 240.25p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 4.50% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.00%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.05%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 2.10%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 18 September 2020, fund data last updated 27 February 2012

The fund adopts a dark green, strongly ethical approach to bond investing; a separate external ethical screen is initially employed and excludes the manager from investing in companies involved in areas such as nuclear power, animal welfare, gambling, tobacco, oppressive regimes and alcohol. The fund predominantly invests in sterling investment grade bonds, but may also utilise up to 10% in higher yielding bonds. Bonds issued by major governments and companies will be more stable than those issued by emerging markets or smaller corporate issuers; in the event of an issuer experiencing financial difficulty, there may be a risk to some or all of the capital invested. Any historical or current yields quoted should not be considered reliable indicators of future performance.

Fund summary

Sector £ Corporate Bond
Structure OEIC
Launched April, 2000
Size £458m
Yield 2.10%
Charging basis
Dividends paid 31 Mar, 30 Jun, 30 Sep, 31 Dec

Charges

Standard initial charge 4.50%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.05%

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Investment process

The aim is to invest in bonds that have been issued by socially aware companies. The fund will invest over 80% of the portfolio in investment grade bonds with up to 10% in non investment grade high yield Bonds. The objective is to maximise total return by investing in sterling denominated bonds that meet the ethical criteria. Sources of alpha include duration, asset allocation, yield curve positioning, stock selection, rating and sector preferences.

The fund adopts a dark green approach to ethical bond investing; a separate external ethical screen is initially employed and excludes the manager from investing in companies involved in areas such as nuclear power, animal welfare, gambling, tobacco, oppressive regimes and alcohol. This can limit investment choice and could hinder returns.

Manager research

Average monthly relative returns

  • 15/16 -0.46%
  • 16/17 0.04%
  • 17/18 0.00%
  • 18/19 -0.13%
  • 19/20 -0.06%

Bestinvest MRI

  • 3 years -0.07%
  • 5 years -0.12%
  • Career -0.07%
  • 3 years 44.00%
  • 5 years 22.10%
  • Career 41.30%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Iain Buckle / Euan Mcneil

Buckle joined AEGON Asset Management in 2000 and is a member of the Portfolio Construction team. He spent his first three years on the Rates team, where he analysed the gilt and index-linked market. Previously Buckle was a member of Baillie Gifford’s fixed income team. He has an MA (Hons) in Economics from Heriot-Watt University, is a CFA Institute charterholder. McNeil joined AEGON in 2003 from Britannic Asset Management, where he spent the previous two years on the corporate bond desk. Prior to joining Britannic, he was a portfolio manager covering Far East equities at Blairlogie. McNeil has an honours degree in economics and French from the University of Strathclyde, and an MSc in investment analysis from the University of Stirling.

Track record

Iain Buckle / Euan Mcneil has 10.9 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.07%. During the worst period of relative performance (from November 2011 - August 2020) there was a decline of 13% relative to the index. The worst absolute loss has been 6%.

Periods of worst performance

Absolute -6.00% (February 2020 - March 2020)
Relative -13.00% (November 2011 - August 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

1.7695% Lcr Finance 5.1% Gtd Bds 7/3/51 Gbp(Var)
1.6298% Transport For London 5% Nts 31/03/35 Gbp50000
1.2424% Cooperatieve Rabobank Ua 5.25% Mtn 14/09/27 Gbp100000
1.1886% Northern Powergrid(Yorkshire)Plc 4.375% Bds 05/07/32 Gbp100000
1.1692% Kreditanstalt Fur Wiederaufbau Kfw 5% Bds 9/6/2036 Gbp1000
1.1483% Hbos Sterling Finance(Jersey) 7.881% Gtd Non Vtg Non Cum Prf Gbp
1.1435% Bpce Sa 5.25% Bds 16/04/29 Gbp100000
1.0601% White City Property Finance 5.1202% Com Mtg Fxd Nt 17/04/35 Gbp50000
1.0595% Abp Finance Plc 6.25% Gtd 14/12/26 Gbp100000
1.0132% Apt Pipelines Ltd 4.25% Bds 26/11/24 Gbp100000
Source: Trustnet

Sector breakdown

Financials 48.00%
Others 26.00%
Mortgage & Secured Bonds 17.00%
Government Bonds 3.00%
Money Market 2.00%
Government Agency Bonds 2.00%
Asset/Mortgage-Backed Securities 2.00%

Portfolio

The top 10 holdings make up to 30% of assets.

Constraints

No minimum sector diversification limits. Maximum of 20% in cash. 10% in High Yield bonds and at least 80% in sterling investment grade corporate bonds.

Key Investor Information - Income

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Key Investor Information - Accumulation

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