BlackRock Corporate Bond A

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

  • 117.00p
    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.

  • 364.00p
    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?

  • 3.25% 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!

  • 1.00%
    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).

  • 1.08%
    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.

  • 2.10%
    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 23 October 2020, 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 £1,239m
Yield 2.10%
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 0.57%
Annual management charge 1.00%
Ongoing charges figure 1.08%

Allocation

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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

  • 15/16 -0.24%
  • 16/17 0.16%
  • 17/18 0.10%
  • 18/19 -0.17%
  • 19/20 -0.05%

Bestinvest MRI

  • 3 years -0.04%
  • 5 years -0.04%
  • Career -0.03%
  • 3 years 50.80%
  • 5 years 50.80%
  • Career 57.50%

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 5.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.03%. 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 8%.

Periods of worst performance

Absolute -8.00% (January 2020 - March 2020)
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.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

3.7825% Hm Treasury United Kingdom Dmo 0.875% Gilt 22/10/29 Gbp0.01
2.7426% Tesco Property Regs
2.5061% Hm Treasury United Kingdom Dmo 4.25% Gilt 7/9/39 Gbp0.01
2.1242% Wells Fargo & Co 2% Nts 28/07/25 Gbp100000
2.0263% Time Warner Cable Llc 5.75 06/02/2031
1.9829% Bupa Finance Plc 1.75% Nts 14/06/27 Gbp100000
1.7291% Imperial Brands Finance Plc 5.5% Nts 28/09/26 Gbp100000
1.6419% Edf 5.875% Undated Nts Gbp100000
1.6143% Altria Group Inc 2.2% Bds 15/06/27 Eur100000
1.561% Hsbc Hldgs 6% Subord Nts 29/03/40 Gbp50000
Source: Trustnet

Sector breakdown

Industrials 33.00%
Financials 26.00%
Utilities 12.00%
Government Bonds 10.00%
Money Market 10.00%
Asset/Mortgage-Backed Securities 3.00%
Asset/Mortgage-Backed Securities 3.00%
Government Agency Bonds 3.00%

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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