Allianz Strategic Bond A

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

  • 209.09p
    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 18 September 2020, fund data last updated 31 March 2006

The fund has a flexible strategy which aims to be able to outperform its benchmark in any market environment by adjusting its exposures to rates, credit, inflation or currencies through the economic cycle, and revolving its holdings into different fixed income assets based upon the investment outlook. The fund has an unconstrained global mandate and has outperformed in many different as well as challenging market environments. 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 £2,079m
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

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Investment process

The portfolio managers implement a global macro investment approach – all macroeconomic research is conducted internally using proprietary techniques, and the portfolio management input is central to idea generation and portfolio construction. The portfolio management team sit next to each other in our London office and are in constant contact over market developments and idea generation. In addition, a formal weekly meeting is scheduled every Monday morning in which the investment outlook guiding the strategy is reviewed and scrutinised. Risk management processes involve not just the Portfolio Managers, as the first line of defence, but include the wider leadership team of the AllianzGI Fixed Income platform, including the CIO, as well as periodic inputs from the independent Risk Management function within the business.

The fund offers a different approach to managing the portfolio – more “top down”, an IG, 2/3 sovereign benchmark and a wider set of potential alpha sources. The fund aims for a zero correlation with equity markets (it is actually marginally negative) and a strong peer relative performance under more normal market conditions. Over a full market cycle (i.e. including at least one period of dislocation) its performance is very strong whilst drawdown/ volatility is relatively low.

Manager research

Average monthly relative returns

  • 15/16 0.35%
  • 16/17 0.22%
  • 17/18 -0.20%
  • 18/19 -0.24%
  • 19/20 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

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Top 10 holdings

Data accurate as at 30 June 2020

3.34% Japan(Government Of) 0.1% Bds 01/01/22 Jpy50000
3.15% United States Of Amer Treas Bills 1.625% Tb 15/08/29 Usd100
3.09% United States Of Amer Treas Notes 0.625% Tnt 15/05/30 Usd100
2.89% Japan(Government Of) 0.1% Snr Bds 20/03/24 Jpy50000
2.31% Australia(Commonwealth Of) 2.75% Tb Bds 21/05/41 Aud1000
2.25% Australia(Commonwealth Of) 3% Tb 21/03/47 Aud100 (Cdi)
2.12% Lukoil Securities Bv 3.875% Nts 06/05/30 Usd200000 144a
2.11% United States Of Amer Treas Bills 2.875% Tnt 15/08/28 Usd100
1.99% Anheuser-Busch Inbev Sa/Nv 3.7% Nts 02/04/40 Eur100000
1.86% Singapore(Govt Of) 2.375% Bds 01/06/25 Sgd1000
Source: Trustnet

Sector breakdown

Government Bonds 42.00%
Corporate Bonds 36.00%
Government Guaranteed 17.00%
Money Market 3.00%
Foreign Exchange 2.00%

Portfolio

The portfolio will usually consists of 80-100 names. 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

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