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Insight High Grade ABS B GBP

Bestinvest LogoInvests in prime-residential mortgage-backed securities with the aim of outperforming cash.

PRICE (INC)

135.18p

PRICE (ACC)

135.18p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.25%

ONGOING CHARGE

0.3%

YIELD

0%

1 YEAR
-1.82%

Prices as at 10 Aug 2022.

Fund commentary last updated 24 Mar 2022.

Past performance is not an indication of future performance.

Capital at risk.

The fund seeks to deliver an interest rate-based return by investing in a range of asset-backed securities (ABS) and corporate floating rate notes. An asset-backed security is a bond whose returns are derived from and backed by a specified pool of underlying assets. Managers Shaheer Guirguis and Jeremy Deacon actively run the fund with the aim of outperforming cash by 2% per year. The duo mainly invests in AAA or AA rated securities with a bias to prime-residential mortgage-backed securities, mostly from European issuers. Other portfolio allocations include buy to let residential, cash, credit cards and commercial mortgage-backed securities.

Fund summary

Sector
StructureOFFSHORE FUND
LaunchedMarch 2011
Size£6,065m
Yield0%
Charging BasisIncome
Dividends paidAcc units only

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.25%
Ongoing Charges Figure0.3%

Investment Process

The managers aim to outperform cash by 2% per annum gross of fees over three-year rolling periods. They aim to achieve this through taking an absolute return approach to fixed income investing. The investment team assess every loan on a quantitative and qualitative basis. They meet each of their collateralized loan obligations (CLO) managers at least once a year, and rate them on a yellow, amber, or red framework based not just on the quality of the loans but also governance. Although the fund’s main exposure is to prime residential mortgage-backed securities (MBS) the managers will also invest a limited amount into commercial mortgages, credit card loans, auto loans, student loans and personal loans depending on the point in the economic cycle and the valuation of various asset classes. Its main geographical exposure is to the UK, followed by Pan-Europe, the US and Australia.

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning