HSBC Corporate Bond R

Full costs are above average.

  • 127.00p
    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.

  • 300.60p
    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?

  • 4.00% 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).

  • 1.15%
    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.

  • 2.20%
    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 summary

Sector £ Corporate Bond
Structure OEIC
Launched February, 1996
Size £951m
Yield 2.20%
Charging basis Income
Dividends paid 15 Mar, 15 Jun, 15 Sep, 15 Dec

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.15%

Allocation

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Investment process

This fund aims to provide a high quarterly income. There is an element of risk to capital. However, this tends to be lower than with funds investing in shares. It invests in corporate bonds and Government securities.The team uses top-down analysis from the HSBC Global Investment Strategy Group and Fixed Income Duration Committee and combines this with analysis of currency markets, yield curve and specific securities. Portfolio construction is carried out within a disciplined framework with controls on duration (maturity) and security selection.

Manager research

Average monthly relative returns

  • 14/15 -0.08%
  • 15/16 -0.01%
  • 16/17 -0.02%
  • 17/18 0.01%
  • 18/19 -0.04%

Bestinvest MRI

  • 3 years -0.02%
  • 5 years -0.03%
  • Career -0.05%
  • 3 years 52.00%
  • 5 years 41.70%
  • Career 31.60%

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

Mohamed Siddeeq

Track record

Mohamed Siddeeq has 7.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.05%. During the worst period of relative performance (from May 2012 - July 2016) there was a decline of 5% relative to the index. The worst absolute loss has been 6%.

Periods of worst performance

Absolute -6.00% (April 2013 - June 2013)
Relative -5.00% (May 2012 - July 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 2019

1.37% Hm Treasury United Kingdom Dmo 4.25% Gilt 07/03/36 Gbp0.01
1.36% Hm Treasury United Kingdom Dmo 4.75% Gilt 07/12/38 Gbp
1.21% Elec De France 5.500 17/10/41
1.16% Fca Bank Spa 1.625% Mtn 29/09/21 Gbp100000
1.04% Walmart Inc 5.625% Bds 27/03/34 Gbp1000
1.01% At&T Inc 7% Bds 30/04/40 Gbp(Var)
.97% Hm Treasury United Kingdom Dmo 1.625% Treasury Gilt 22/10/28 Gbp0.01
.97% Bnp Paribas Sa 3.375% Mtn 23/01/26 Gbp100000
.95% Wells Fargo & Co 1.375% Nts Due 30/06/22 Gbp100000
.93% Deutsche Bank Ag 1.75% Bds 16/12/21 Gbp100000
Source: Trustnet

Sector breakdown

Financials 38.00%
Utilities 20.00%
Consumer Goods 10.00%
Telecommunications 8.00%
Government Bonds 7.00%
Industrials 5.00%
Consumer Services 4.00%
Health Care 3.00%
Others 3.00%
Basic Materials 1.00%

Key Investor Information - Income

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Key Investor Information - Accumulation

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