Aegon Strategic Bond B

A less constrained hybrid bond portfolio investing across global fixed income markets.

  • 140.85p
    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.

  • 151.54p
    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?

  • 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!

  • 0.75%
    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).

  • 0.79%
    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.

  • 2.80%
    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 23 November 2020, fund data last updated 30 September 2014

The fund aims to maximise risk adjusted returns through a credit cycle through asset allocation across the fixed income universe and credit selection calls. To this end investments can include G7 sovereign debt, quality and high yield corporate bonds and emerging market debt. The fund seeks to outperform its peer group: the IA Strategic Bond sector. The allocation to high yield bonds is unlikely to exceed 30% of net asset value. Non sterling currency exposures are generally hedged back to sterling. 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 £ Strategic Bond
Structure OEIC
Launched September, 2012
Size £245m
Yield 2.80%
Charging basis Income
Dividends paid 31 Mar, 30 Jun, 30 Sep, 31 Dec

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.79%

Allocation

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Investment process

The fund invests in global debt instruments, primarily publicly traded bonds, mainly denominated in dollars, sterling or euros. The fund will consist of high conviction ideas with positions in individual issuers averaging between 0.5-2%, though some larger government bond positions may feature in the portfolio. To determine the top down construction of the fund the portfolio managers draw on the views of Kames' international bond departments via a formal monthly asset allocation meeting. Individual securities are taken from a template of best ideas submitted by the heads of the respective fixed income asset classes. The manager will actively manage interest rate risk within the portfolio; if deemed appropriate this can be taken as low as 0 yrs. High yield corporate bond exposure is unlikely to exceed 30%. Whilst the fund mandate allows for an open currency position of up to 20%, this is not expected to be a major source of returns. Unhedged exposure to the fund's base currency is unlikely to exceed 5% of NAV.

Whilst the fund is managed from their Edinburgh office, Kames adopt a global approach to fixed income investing incorporating the world's main credit and sovereign bond markets. Kames offer a strong suite of fixed income products; this is essentially their best ideas fund, drawing on the expectations of their fixed income product leaders. Relative to other peer group funds this is a smaller, more focused and conservative offering, investing across more mainstream fixed income securities.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.07%
  • 18/19 0.12%
  • 19/20 0.57%

Bestinvest MRI

  • 3 years 0.25%
  • 5 years 0.00%
  • Career 0.24%
  • 3 years 99.60%
  • 5 years 0.00%
  • Career 99.70%

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

Alexander Pelteshki / Juan Valenzuela

Pelteshki is an investment manager in the Fixed Income team and specialises in credit analysis in the global financials sector across the entire capital structure. He joined Kames in 2014 from ING Financial Markets, where he was a publishing/lead equity analyst on the banks sector. Prior to that, he was an equity trading analyst for UBS Wealth Management. Pelteshki studied International Business Management at Dickinson College in the USA, and has an MBA degree from Erasmus University in Rotterdam. Valenzuela is an investment manager in the Fixed Income team with responsibility for analysing global rates markets, both conventional and inflation-linked bonds. He is the co-manager of our strategic bond strategies. He joined us from Alliance Trust, where he was an investment manager on a dynamic bond fund. Prior to that, Valenzuela worked in investment management roles for Scottish Widows Investment Partnership and JP Morgan, and he has 15 years’ industry experience. He has degrees in both Law and Business from Carlos III University in Madrid, and is a CFA charterholder.

Track record

Alexander Pelteshki / Juan Valenzuela has 3.2 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.24%. During the worst period of relative performance (from February 2020 - March 2020) there was a decline of 2% 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 more than 99%.

Periods of worst performance

Absolute -10.00% (January 2020 - March 2020)
Relative -2.00% (February 2020 - March 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

3.9366% United States Of Amer Treas Bills 0.25% Tb 15/07/29 Usd100
2.4305% Hm Treasury United Kingdom Dmo 4.75% Gilt 07/12/30 Gbp
1.5202% United States Of Amer Treas Notes 1.5% Nts 15/02/30 Usd100
1.2919% Hbos Sterling Finance(Jersey) 7.881% Gtd Non Vtg Non Cum Prf Gbp
1.2228% Boeing Co 5.93% Bds 01/05/60 Usd2000
1.1879% Hsbc Cap Funding(Sterling 1)Lp 5.844% Eur Med Trm Nts Perp Gbp1000
1.1729% Cooperatieve Rabobank Ua 6.567% Subord Nts Perp Gbp50000
1.1201% Nationwide Building Society
1.116% Australia(Commonwealth Of) 1.75% Bds 21/06/51 Aud1000
1.0992% Telereal Secured Finance 4.01% Nts 10/12/33 Gbp1000
Source: Trustnet

Sector breakdown

Financials 39.00%
Industrials 39.00%
Government Bonds 10.00%
Utilities 4.00%
Money Market 4.00%
Asset/Mortgage-Backed Securities 2.00%
Government Agency Bonds 1.00%

Portfolio

140-150 holdings. Typical position sizes 0.5-2%.

Constraints

High yield bonds are unlikely to exceed 30% of net asset value. Max 20% cash.

Key Investor Information - Income

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Key Investor Information - Accumulation

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