Barings Strategic Bond A GBP

Investing primarily in G7 government bonds.

  • 120.40p Price (Inc)
  • - Price (Acc)
  • 5.00% 0.00% Initial charge
  • 1.25% Annual management charge
  • 1.35% Ongoing charges
  • 1.10% Yield

Prices as at 10 December 2019, 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 £38m
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%

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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

  • 14/15 0.00%
  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 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.

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Top 10 holdings

Data accurate as at 30 August 2019

8.0998% Italy(Republic Of) 6% Eur Med Trm Notes 4/8/2028 Gbp1000
7.5206% Greece(Republic Of) 3.9% Bds 30/01/33 Eur1
7.0011% Greece(Republic Of) 3.875% Bds 12/03/29 Eur1000
5.4414% Italy(Republic Of) 2.8% Bds 01/03/67 Eur1000
5.3988% Italy(Republic Of) 5% Bds 01/09/40 Eur6000000
5.1929% Invesco Markets Ii Plc At1 Capital Bond Ucits Etf Acc Usd
5.0511% Mexico(United Mexican States) 3.6% Bds 30/01/25 Usd200000
4.6506% Brazil(Federative Republic Of) 12.25% Bds 6/3/2030 Usd1000
4.0807% Italy(Republic Of) 6.875% Debs 27/09/23 Usd1000 (Reg)
4.0341% Indonesia(Republic Of) 5.875% Nts 15/01/24 Usd200000reg S
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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