BNY Mellon International Bond

Invests mainly in the world's bond markets through investment in government and other public securities.

  • 244.39p
    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?

  • 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).

  • 1.14%
    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.

  • 0.80%
    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 13 December 2019, fund data last updated 30 November 2009

A total return fixed income fund investing primarily in the wealthiest (G8) government debt and other public securities. Value is added by adjusting the fund's profile with respect to regional exposure, duration and yield curve positions and currency exposure. I.e. a combination of strategic and tactical timing. At anyone time the manager will seek to minimise downside risk, whilst at the same time achieve out performance of peer group funds and its reference benchmark the JPM Global Government Bond Index.

Fund summary

Sector Global Bonds
Structure OEIC
Launched February, 1991
Size £423m
Yield 0.80%
Charging basis Income
Dividends paid 28 Feb, 31 Aug

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.14%

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Investment process

The aim is to maximise total return from income and capital growth from the world's sovereign bond and currency markets. The bonds held are typically those of OECD (typically large developed economies) countries or of supranational quality. The fund consists of an actively managed portfolio of bonds denominated in different currencies. Currency hedging may be undertaken to reduce currency specific risk and prevent it from dominanting portfolio returns, however at the same time it is viewed as a source of potential return. The manager also aims to add value through active duration management, yield curve positioning, and country selection. I.e. a combination of strategic and tactical timing. The investment process may utilise derivatives to implement some of these strategies. The investment team will conduct backward looking statistical analysis, test portfolios under various future scenarios and attach probabilities to these outcomes occurring.

This fund was previously on Bestinvest's buy list when it was under the stewardship of the well regarded Stewart Cowley back in 2008. And whilst the current manager has many years of experience operating in the global sovereign debt and currency markets,we have stronger conviction with some other fund managers, operating in the international bond space.

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 -0.11%
  • 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.

Paul Brain

Brain began his career with Midland Bank (now HSBC) joined Barings in 1982 and spent periods at Sanwa International and Manufacturers Hanover as a multi currency fixed income manager. He was recruited by Credit Suisse in 1991 where he worked as as a European Fixed Income Fund Manager and Currency Overlay Strategist, before joining Investec in March 1995. His responsibilities at Investec included macro economics, bond and credit research. He left Investec in early 2001 to join MSG & Partners, where he ran the Stellar High Yield hedge fund. In July 2004 it was announced he had joined Newton as a Fixed Income Investment Manager.

Track record

The track record of Paul Brain 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 -3.00% (January 2000 - January 2000)
Relative -3.00% (January 2000 - June 2000)

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 August 2019

4.55% Usa Treasury Notes 0.75% Tii 15/07/2028 Usd100
4.15% United States Of Amer Treas Bonds 2.875% Bds 15/05/43 Usd1000
4.12% Japan(Government Of) 0.5% Bds 20/09/46 Jpy50000 52
3.71% Hm Treasury United Kingdom Dmo 4.25% Gilt 7/12/2027
3.45% United States Of Amer Treas Bonds 3% Tb 15/11/45 Usd100
3.3% Japan(Government Of) 0.1% Bds 01/06/21 Jpy50000
3.11% Usa Treasury Notes 0.125% Tii 15/04/2020 Usd100
3.04% Japan(Government Of) 0.1% Bds 15/04/20 Jpy50000
2.61% Norway(Kingdom Of) 1.75% Bds 17/02/27 Nok1000
2.49% Spain(Kingdom Of) 5.15% Bds 31/10/28 Eur1000
Source: Trustnet

Sector breakdown

Government Bonds 60.00%
Government Index Linked 12.00%
Government Agency Bonds 9.00%
Others 8.00%
Floating Rate Notes 6.00%
Government Guaranteed 3.00%
Money Market 2.00%

Portfolio

The portfolio typically holds 20-30 bonds.

Constraints

Whilst there are no specific guidelines for sector/country allocation, historically tracking error (variations in performance relative to the benchmark) has tended to be in the 3-4% range.

Key Investor Information

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