Aviva Investors Corporate Bond SC A

Invests exclusively in UK investment grade corporate bonds.

  • 0.00p Price (Inc)
  • - Price (Acc)
  • 4.00% 0.00% Initial charge
  • 1.00% Annual management charge
  • 1.12% Ongoing charges
  • 0.00% Yield

Fund data last updated 06 July 2006

A total return fund which seeks to provide investors with a consistent level of income whilst aiming to preserve capital through investing mainly in sterling denominated investment grade bonds. The fund will not hold preference or convertible stock.

Fund summary

Sector £ Corporate Bond
Structure X-OEIC
Launched February, 2003
Size £2,197m
Yield 0.00%
Charging basis Income
Dividends paid 15 Mar, 15 Jun, 15 Sep, 15 Dec

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.12%

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Investment process

Responsibility for the running of the portfolio is with Morley Fund Management, the investment management arm of Aviva, (formerly CGNU). The fund will be invested mostly across UK corporate bonds and gilts. The process is a blend of top down and bottom up strategies. The team will start with an analysis of the macro economic environment to determine the risk profile of the fund, they will subsequently select individual issues that reflect these views. The manager expects out performance to be driven mostly by stock selection, duration management carries a low emphasis, sector allocation is invariably a by product of the investment process. The fund's reference benchmark is the IA UK Corporate Bond.

Manager research

Average monthly relative returns

  • 14/15 -0.03%
  • 15/16 -0.28%
  • 16/17 -0.07%
  • 17/18 -0.01%
  • 18/19 -0.14%

Bestinvest MRI

  • 3 years -0.07%
  • 5 years -0.11%
  • Career -0.13%
  • 3 years 33.70%
  • 5 years 14.70%
  • Career 7.90%

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

Christopher Higham

Higham rejoined Morley in September 2008 from Old Mutual Asset Managers where he worked as a fund manager since June 2005. He co-managed the AA rated Old Mutual Dynamic Bond fund and deputy managed the Old Mutual Corporate Bond fund. He previously worked at Morley from September 1999 as a credit analyst.

Track record

Christopher Higham has 11.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.13%. During the worst period of relative performance (from May 2008 - July 2019) there was a decline of 16% relative to the index. The worst absolute loss has been 23%.

Periods of worst performance

Absolute -23.00% (April 2008 - March 2009)
Relative -16.00% (May 2008 - July 2019)

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.

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Top 10 holdings

Data accurate as at 31 August 2019

9.28% Uk Conv Gilt
4.6% European Inv. Bank
2.91% Electricite De France S.a.
2.53% Barclays Bank Plc
1.97% Imperial Brands Fin. Plc
1.95% Kfw
1.9% At&T Inc.
1.86% Bank Of America Corp.
1.86% Hsbc Hldg. Plc
1.82% Verizon Com. Inc.
Source: Trustnet

Sector breakdown

BBB 46.00%
A 23.00%
AA 15.00%
AAA 15.00%
BB 1.00%
Non-Rated 1.00%

Portfolio

The guidelines for the fund state that the average weighted credit rating should be at least A. The portfolio will be diversified across at least 100 issues, normally between 110-130 stocks. No more than 10% of the value of the assets in the fund to be invested in securities issued by any single issuer or on 'unapproved markets'. Up to 35% to be invested in gilts and up to 5% in collective investment schemes.

Constraints

Maximum weight per issuer: 5%, in practice the range tends to be 1-3.5%.

Key Investor Information

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