fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

AHFM Defined Returns B GBP

A fund of structured products targeting a 7-8% return net of fees.

  • 98.77p
    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.

  • 141.80p
    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!

  • 0.55%
    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).

  • 0.78%
    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.

  • 2.20%
    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 01 July 2020

The fund was launched in November 2013 and has now accumulated a 6-year track record. It aims to generate medium to long-term growth targeting a long-term GRY net of fees of between 7-8%, based upon the pricing environment for structured investments. The fund has no index benchmark and aims to achieve its objective by investing in a diversified portfolio of structured investments linked to global equity indices. It will invest primarily in a mixture of standalone structured products across a number for eligible counterparties. The fund will hold a relatively high proportion of its assets in gilts which will typically be used to enter into swap agreements with eligible counterparties looking to obtain a desired payoff.

Fund summary

Sector Flexible Investment
Structure OFFSHORE FUND
Launched November, 2013
Size £1,247m
Yield 2.20%
Charging basis
Dividends paid Feb, May, Aug, Nov

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.55%
Ongoing charges figure 0.78%

Allocation

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Investment process

The fund aims to generate medium to long-term growth by investing in a diversified portfolio of structured investments linked to global equity indices. It will invest primarily in a mixture of transferable securities and financial derivative instruments. The fund will look to gain exposure both via structured products issued by a number of counterparties as well as holding a proportion of its assets in gilts which will typically be used to enter into swap agreements with eligible counterparties looking to obtain a desired payoff. At the point of swap initiation, its values is zero. Swap agreements are marked to market on a daily basis and the value of swap agreements is typically collateralised. Allocation to gilts is a function of credit spreads – tighter levels of credit spreads will typically result in a larger allocation to ‘swap’ trades backed by gilts. Where trades are issued using bank notes, issuing counterparties will typically have a credit rating of at least ‘A-’. The fund will typically look to gain market exposure using autocalls, boosters and digital notes, allocating capital across a number of developed market regions, including North America, UK, Europe, Japan, and Asia ex Japan markets. The fund will typically have a bias to the UK and targets delta exposure of circa 60-80%.

The fund aims to achieve its objective by investing in a diversified portfolio of structured investments linked to global equity indices. The fund will hold a proportion of its assets in gilts, which will typically be used to enter into swap agreements with eligible counterparties looking to obtain a desired payoff. The swaps are all linked to major global equity indices, predominantly FTSE 100 with a reasonable exposure to S&P 500 and Eurostoxx 50. The liquidity of such options is driven by the Futures and Options Markets on those indices; a far larger and active, and therefore usually more liquid, market than the stocks that make up those indices themselves.

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 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

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

Track record

Periods of worst performance

Absolute 0.00% ()
Relative 0.00% ()

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

% Stock
5.61%% Gilt Backed FTSE / EuroStoxx / S&P Def Autocall
5.22% JPM backed FTSE / S&P / EuroStoxx Def Autocall
5.21% Gilt Backed FTSE / EuroStoxx /Nikkei S&P Def Autocall
4.84% Gilt Backed FTSE / Swiss Market Index / EuroStoxx Def Autocall
4.57% Gilt Backed FTSE / EuroStoxx / S&P Def Autocall

Key Investor Information - Income

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Key Investor Information - Accumulation

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