Allianz Strategic Bond A

A conservatively structured hybrid bond fund investing in high and low quality global bonds.

  • 166.91p
    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.

  • -
    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?

  • 4.00% 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!

  • 1.25%
    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).

  • 1.44%
    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.

  • 0.80%
    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 13 December 2019, fund data last updated 31 March 2006

The Fund aims to maximise total return, consistent with preservation of capital and prudent investment management. This is done largely through investment in British government securities. Investors should be aware that the Fund's capital is at risk and there is no guarantee that the Fund will achieve its investment objective over any particular period or at all.

Fund summary

Sector £ Strategic Bond
Structure OEIC
Launched May, 2002
Size £676m
Yield 0.80%
Charging basis Capital
Dividends paid 30 Apr, 31 Oct

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.25%
Ongoing charges figure 1.44%

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Investment process

PIMCO adopt a conservative approach to bond management with the emphasis on low volatility, preservation of capital and a number of small active positions with the aim of identifying long term value as opposed to market timing. The strategy prefers stable, transparent credits as opposed to fallen angel/recovery situations. In practice exposure to high yield is expected to vary between 35-5% according to the prevailing market conditions. The fund manager operates within a risk budget set by PIMCO’s global investment committee and the European strategy team, who will determine the optimal high yield/ investment grade allocation and the strategic themes running through the portfolio. All credit analysis is undertaken by PIMCO’s specialist fixed income teams. PIMCO expect 70% of the fund's out performance to be derived from bottom up credit analysis. The fund is benchmarked against 75% Merrill Lynch Non Gilt and 25% Merrill Lynch Euro High Yield Index targeting out performance of 1-1.25% p.a before fees over 3-5 years.

Manager research

Average monthly relative returns

  • 14/15 0.35%
  • 15/16 0.22%
  • 16/17 -0.20%
  • 17/18 -0.24%
  • 18/19 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.07%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 91.80%

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

Mike Riddell

Riddell joined M&G’s fixed income team in 2003, originally as a portfolio analyst. In March 2010, he was promoted to fund manager of the M&G Emerging Markets Bond Fund, the M&G International Sovereign Bond Fund and the M&G Index-Linked Bond Fund. Prior to joining M&G, Riddell worked as an assistant portfolio manager at Premier Asset Management within the private client department, covering both equities and fixed income. Riddell graduated from Birmingham University in 2001 with a BSc honours in money banking & finance, and passed CFA level 3.

Track record

Mike Riddell has 5.4 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 March 2013 - May 2014) there was a decline of 7% relative to the index. The worst absolute loss has been 15%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 92%.

Periods of worst performance

Absolute -15.00% (March 2013 - June 2014)
Relative -7.00% (March 2013 - May 2014)

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

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Top 10 holdings

Data accurate as at 31 July 2019

4.82% Hm Treasury United Kingdom Dmo 0.125% Idxlk Tsy Gilt 10/08/41 Gbp0.01
4.06% Norway(Kingdom Of) 1.75% Bds 06/09/29 Nok1000
3.81% Japan(Government Of) 0.1% Bds 20/12/23 Jpy50000
3.77% Japan(Government Of) 0.1% Bds 01/06/21 Jpy50000
3.58% Buoni Poliennali Del Tes Fix 3.750% 01.09.2024
2.99% Buoni Poliennali Del Tes Fix 3.350% 01.03.2035
2.89% Italy(Republic Of) 2.1% Bds 15/07/26 Eur1000
2.82% Deutschland I/L Bond I/L I/L Fix 0.500% 15.04.2030
2.75% Japan(Government Of) 0.1% Snr Bds 20/03/24 Jpy50000
2.7% France Oat 0.1% Bds 01/03/29 Eur1
Source: Trustnet

Sector breakdown

Government Bonds 90.00%
Corporate Bonds 6.00%
Government Guaranteed 4.00%
Money Market 3.00%

Portfolio

The portfolio will usually consists of 80-100 names. Fund duration is managed to within +/-1 year of the benchmark. The fund will not invest in debt rated below B. Maximum holding outside of Government backed bonds is 5%.

Constraints

Max exposure to Non Europe incl UK: 30%, max exposure to HY: 50% (min. rating B-). A minimum of 75% of currency exposure will be hedged back into sterling. The fund may also invest in emerging market debt and convertible bonds.

Key Investor Information

Download