Aegon Sterling Corporate Bond A

A portfolio of mainly investment grade bonds.

  • 34.37p
    Price (Inc)

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  • 86.39p
    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 25 September 2020, fund data last updated 11 March 2003

Historically this has been a tight portfolio of mainly investment grade corporate bonds with the intention of producing capital returns and an attractive level of income. Economic views will be factored into the overall profile of the fund, but the main driver will be the stocks selected. From March 2004 the fund will be managed by David Roberts who brings one of the best risk adjusted records in the sector.

Fund summary

Sector £ Corporate Bond
Structure OEIC
Launched October, 1995
Size £270m
Yield 2.10%
Charging basis Income
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%

Allocation

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Investment process

A concentrated fund, mainly investing in UK investment grade corporate bonds with tactical inclusion of gilts and/or high yield debt when appropriate. The portfolio is mainly driven by individual stock selection. Duration and sector positions are monitored but generally arise as a result of the portfolio construction. However, views on the economy may instigate shifts in the portfolio with regard to bond durations, sector weightings and yield curve positioning where appropriate. Fundamental analysis regarding the issuing company will be combined with valuation of the specific issue to select those stocks more likely to produce outperformance.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.19%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 87.30%

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

David Roberts

Roberts joined Kames Asset Management (previously Aegon) in March 2004 and is their joint head of fixed income. He previously worked for Britannic Asset Management (now Ignis) from 1997 where his principal responsibility was the management of corporate bond exposure across all relevant fixed income portfolios. Prior to Britannic he spent several years in the banking industry where he specialised in credit analysis and foreign exchange. He holds a degree in economics and an MSc in investment analysis. He is also a qualified member of the Institute of Bankers and an Associate of the UK Society of Investment Professionals.

Track record

David Roberts has 3.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.19%. During the worst period of relative performance (from September 2001 - October 2002) there was a decline of 9% relative to the index. The worst absolute loss has been 10%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 87%.

Periods of worst performance

Absolute -10.00% (February 2001 - October 2002)
Relative -9.00% (September 2001 - October 2002)

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

1.9264% E.on International Finance 6.375% Eur Med Trm Nts 7/6/32 Gbp1000
1.6764% Orsted A/S 5.75% Nts 09/04/40 Gbp500000
1.441% Cooperatieve Rabobank Ua 6.567% Subord Nts Perp Gbp50000
1.4206% Telereal Secured Finance 4.01% Nts 10/12/33 Gbp1000
1.3747% Tesco Property Finance 2 Plc 6.0517% Mtg Bds 13/10/39 Gbp1000
1.3361% Innogy Finance Bv 4.75% Bds 31/01/34 Gbp1000
1.2475% Rothesay Life Plc 3.375% Bds 12/07/26 Gbp100000
1.2221% Nie Finance Plc 2.5% Gtd Nts 27/10/25 Gbp100000
1.2026% Sp Manweb Pl 4.875% 09/27
1.2013% Deutsche Bank Ag 1.75% Bds 16/12/21 Gbp100000
Source: Trustnet

Sector breakdown

Others 46.00%
Financials 40.00%
Mortgage & Secured Bonds 10.00%
Asset/Mortgage-Backed Securities 1.00%
Government Bonds 1.00%
Government Agency Bonds 1.00%
Fixed Interest 1.00%

Portfolio

The portfolio will consist of between 40 and 50 stocks. Mainly investment grade, but up to 10% may be held in gilts and there will typically be around 10% in high yield corporate bonds. Historically the manager has been prepared to actively trade the portfolio, on occasions portfolio turnover has reached an equivalent annualised rate of 400%.

Constraints

No formal portfolio constraints exist on either stock or sector relative positions. However, risk is closely monitored using a system called CreditDelta. The duration of the fund will be kept within +/-2 years of their benchmark, a Sterling BBB bond index.

Key Investor Information - Income

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Key Investor Information - Accumulation

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