Barings Strategic Bond A GBP

Investing primarily in G7 government bonds.

  • 126.50p
    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?

  • 5.00% 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).

  • 1.35%
    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.

  • 1.10%
    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 21 February 2020, fund data last updated 14 June 2010

A total return fixed income fund managed to achieve a combination of income and capital growth by investing primarily in AAA rated OECD sovereign debt. The performance benchmark is a composite of 50% FTSE UK Gilt All Stock Composite and 50% Citigroup World Government Bond Index (ex UK) hedged into sterling.

Fund summary

Sector Global Bonds
Structure UNIT TRUST
Launched February, 1991
Size £39m
Yield 1.10%
Charging basis Income
Dividends paid 6 Mar, 20 Sep

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.25%
Ongoing charges figure 1.35%

Allocation

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Investment process

The trust invests primarily in top quality foreign government stock and UK corporate debt with a credit rating above AA, with a particular aim to generate sterling returns superior to those from UK gilts. Foreign currency risk is part of the diversification process with strategic hedging into sterling. Value addition emphasises the use of portfolio duration, yield curve positioning and exploiting credit spreads as well as astute asset allocation and currency overlays.

OECD government bond and currency markets are amongst the most liquid markets. Historically these funds have tended to perform strongly during periods of falling inflation, risk aversion and currency volatility. Whilst the manager can take steps to reduce the potential negative impact of an increase in inflationary expectations on the fund, generally the fund will tend to struggle more under these conditions.

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 -0.06%
  • 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.

Guy Dunham

Dunham joined Barings in April 2014 as Head of Global Aggregate. Prior to this he worked at HSBC Global Asset Management for 3 years as Head of Global Fixed Income and also for Bank for International Settlements as the Head of Portfolio Management. From 2000 to 2009 he held a various roles at J.P. Morgan including Head of UK and European Rates Strategy. Dunham started his career as an Actuarial Analyst at Towers Perrin in 1986. He has an MA (Cantab) in Mathematics from Clare College, Cambridge University.

Track record

The track record of Guy Dunham in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance

Absolute -2.00% (August 2011 - September 2011)
Relative -2.00% (November 2011 - April 2012)

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 29 November 2019

10.3702% Hm Treasury United Kingdom Dmo 0% Tsy Bill 27/01/20 Gbp1
7.5063% Greece(Republic Of) 3.9% Bds 30/01/33 Eur1
7.025% Greece(Republic Of) 3.875% Bds 12/03/29 Eur1000
5.2832% Mexico(United Mexican States) 8.5% Bds 18/11/38 Mxn100
5.0812% Russian Federation Ministry Finance 7% Bds 16/08/23 Rub1000
4.6231% Brazil(Federative Republic Of) 12.25% Bds 6/3/2030 Usd1000
4.213% Mexico(United Mexican States) 3.6% Bds 30/01/25 Usd200000
4.1201% Russian Federation Ministry Finance 2.875% Bds 04/12/25 Eur100000reg S
4.0212% Indonesia(Republic Of) 5.875% Nts 15/01/24 Usd200000reg S
3.5244% Rep Of Indonesia 8.38% Bds 15/03/24 Idr1000000
Source: Trustnet

Portfolio

Investing mainly in OECD sovereign debt. Neutral duration: 6.5-7.5, duration range: 0.5-12/14 years, currency exposure £ range 30-60% (70-80% max).

Constraints

Tracking error against the FTSE All Stocks is 3-5%. Minimum credit rating is AA.

Key Investor Information

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