BlackRock Corporate Bond A

Primarily a quality bond fund, though it may invest up to 20% in high yield.

  • 114.00p Price (Inc)
  • 348.50p Price (Acc)
  • 3.25% 0.00% Initial charge
  • 1.00% Annual management charge
  • 1.08% Ongoing charges
  • 2.40% Yield

Prices as at 06 December 2019, fund data last updated 16 August 2011

The fund’s objective is to maximise total return by investing principally in corporate bonds and other interest-bearing securities. Sterling denominated investment grade corporate bonds are viewed as the core investment universe although the fund has the flexibility to invest in non-benchmark securities and the capabilities to allocate to below investment grade securities. Fundamental research, portfolio surveillance, idea generation and diversification are combined in the investment process.

Fund summary

Sector £ Corporate Bond
Structure UNIT TRUST
Launched July, 1995
Size £1,176m
Yield 2.40%
Charging basis Capital
Dividends paid 31 Jan, 30 Apr, 31 Jul, 31 Oct

Charges

Standard initial charge 3.25%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.50%
Annual management charge 1.00%
Ongoing charges figure 1.08%

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Investment process

This fund’s investment approach represents collaboration between a Portfolio team responsible for setting the asset allocation framework for portfolio construction and an Investment team which concentrates on bottom up idea generation. These teams combine fundamental research, portfolio surveillance, idea generation and diversification to construct a credit investment process. Fundamental research includes four key fundamental factors: industry attractiveness, competitive position, management quality and financial position. The team considers both qualitative (approx. 70%) and quantitative (approx. 30%) factors in formulating the credit view, which is then discussed at Investment and Portfolio Strategy meetings, although the fund manager has the ultimate responsibility.

Manager research

Average monthly relative returns

  • 14/15 0.00%
  • 15/16 -0.24%
  • 16/17 0.16%
  • 17/18 0.10%
  • 18/19 -0.17%

Bestinvest MRI

  • 3 years 0.03%
  • 5 years 0.00%
  • Career -0.02%
  • 3 years 84.90%
  • 5 years 0.00%
  • Career 58.70%

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

Ben Edwards

Edwards is a member of the Sterling Bond Portfolio team within BlackRock Fundamental Fixed Income. Prior to joining BlackRock in 2010, Edwards was at Legal and General Investment Management from 2003 to 2009 where he was a portfolio manager, responsible for both institutional and retail sterling corporate bond portfolios. He began his career as an Analyst at M&G in 2002 . Edwards earned a Business degree from the Queensland University of Technology (Aust.) in 2000 and a post-graduate qualifications degree in Finance from the Financial Services Institute of Australia in 2002.

Track record

Ben Edwards has 4.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.02%. During the worst period of relative performance (from November 2015 - August 2016) there was a decline of 5% relative to the index. The worst absolute loss has been 4%.

Periods of worst performance

Absolute -4.00% (August 2016 - November 2016)
Relative -5.00% (November 2015 - August 2016)

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

4.0221% Hm Treasury United Kingdom Dmo 1.25% Gilt 22/07/27 Gbp1
2.6506% Wells Fargo & Co 2% Nts 28/07/25 Gbp100000
2.5707% Tesco Property Regs
2.4277% Hm Treasury United Kingdom Dmo 4.25% Gilt 07/03/36 Gbp0.01
2.1107% Time Warner Cable Llc 5.75 06/02/2031
2.0473% Hm Treasury United Kingdom Dmo 1.5% Gilt 22/07/26 Gbp0.01
1.9568% Goldman Sachs Group Inc 4.25% Bds 29/01/26 Gbp100000
1.8492% Bat Capital Corp 2.125% Gtd Nts 15/08/25 Gbp100000
1.7603% Imperial Brands Finance Plc 5.5% Nts 28/09/26 Gbp100000
1.6359% Hsbc Hldgs 3% Bds 22/07/28 Gbp100000
Source: Trustnet

Sector breakdown

Industrials 33.00%
Financials 25.00%
Utilities 14.00%
Government Bonds 9.00%
Asset/Mortgage-Backed Securities 9.00%
Money Market 9.00%
Government Agency Bonds 2.00%

Portfolio

Typically has in excess of 125-175 holdings

Constraints

At least 80% of the fund will be invested in investment grade corporate credit Maximum cash level permitted is 10%.

Key Investor Information - Income

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Key Investor Information - Accumulation

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