BMO Global Total Return Bond (GBP Hedged) 1

A blended fixed income fund. New manager appointed Oct 2004.

  • 106.90p
    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.

  • 204.40p
    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!

  • 1.00%
    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).

  • 1.22%
    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.

  • 0.50%
    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 18 September 2020, fund data last updated 13 May 2003

The total return remit of this fund allows the manager to invest across the full bond spectrum, with no constraints on the allocation between investment grade and high yield debt. The buy rating for this fund was suspended following the departure of the previous manager after the announcement of the ISIS & F&C merger in July 2004.

Fund summary

Sector Global Bonds
Structure OEIC
Launched February, 2000
Size £75m
Yield 0.50%
Charging basis Income
Dividends paid Last day of each month

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.22%

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Investment process

This fund has minimal structural constraints providing the manager with the flexibility to invest across the spectrum of investment grade and high yield bonds, and apply high yield/corporate bond allocations according to his perception of the economic cycle. Top down and bottom up strategies will primarily be played through £ and euro denominated credits. On occasion the fund has also taken positions in emerging market corporate bonds, the manager does not use convertible bonds, preference shares or unrated debt; gilts may be used for duration management. The manager will focus primarily on determining the asset allocation split between grade and high yield, sector exposure and yield curve strategies, whilst stock specific ideas are generated by the credit analyst team. All non sterling currency exposure is hedged.

Manager research

Average monthly relative returns

  • 15/16 -0.47%
  • 16/17 -0.22%
  • 17/18 -0.18%
  • 18/19 -0.28%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career -0.20%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 1.70%

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

Rebecca Seabrook / Keith Patton

Seabrook is director, UK credit, and came over to F&C from the ISIS side. She currently manages over £7 billion of credit funds for insurance and institutional clients. She began her career at London and Manchester in 1996, as a Credit Analyst. Thereafter, she was a fund manager at Friends Ivory & Sime, Rothschild Asset Management, ISIS and F&C. She’s an Accounting & Finance graduate of the University of Wales in 1995, has obtained her IIMR and is a member of UKSIP. Patton is F&C’s Head of Multi Strategy Fixed Income and joined the Group in 2012. Prior to this he was a Managing Director and the Global Head of Fixed income for UBS Wealth Management in Zurich. Having previously worked for Brevan Howard responsible for building the institutional UCITS III business. Patton began his career with the United Bank of Kuwait in 1990 moving to Robert Flemings in 1995 as Head of European Fixed Income strategy. In 1997 he moved to Morgan Grenfell (later rebranded Deutsche Asset Management) where he became the Head of Euro Fixed Income and Managing Director. In 2005 Deutsche was sold to Aberdeen Asset Management where Patton became the Head of Portfolio and Product Management. He graduated in 1989 from South Bank University in London with a BA Hons in Business Studies (specialising in Finance) and completed the Investment Management Programme at the London Business School in 1991.

Track record

Rebecca Seabrook / Keith Patton has 7.1 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.2%. During the worst period of relative performance (from February 2013 - August 2019) there was a decline of 17% relative to the index. The worst absolute loss has been 5%.

Periods of worst performance

Absolute -5.00% (February 2015 - December 2018)
Relative -17.00% (February 2013 - August 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.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

2.4% Hm Treasury United Kingdom Dmo 3.75% Gilt 7/9/20 Gbp0.01
.9% T-Mobile Usa Inc 3.75% Bds 15/04/27 Usd2000144a
.9% Barclays Plc 1% 06/10/2023
.9% Italy (Republic Of) 1.650% 01/12/2020
.8% Discovery Communications Inc 2.5% Bds 20/09/24 Gbp100000
.8% Intercontinental Hotels Group 3.875% Nts 28/11/22 Gbp100000
.8% Takeda Pharmaceutical Co Lt
.8% Saudi Arabian Oil Co 2.875% Nts 16/04/24 Usd200000 144a
.8% Taqa Abu Dhabi National
.8% Santander Uk Group Holdings
Source: Trustnet

Sector breakdown

Banks 20.00%
Consumer Goods 18.00%
Non-Cyclical Goods 10.00%
Others 10.00%
Industrials 10.00%
Money Market 7.00%
Telecommunications 7.00%
Insurance 6.00%
Property 5.00%
Others 4.00%

Portfolio

The portfolio holds around 100 names, the maximum exposure to an investment grade name is 3%, a high yield name 1.5%. There are no formal restrictions on investment grade versus high yield weightings.

Constraints

There are no formal restrictions on sector weightings. The maximum cash weighting is 10%.

Key Investor Information - Income

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Key Investor Information - Accumulation

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