fund
Invesco High Yield (UK) Y
Invests in sub investment grade European corporate bonds.
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183.11p
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.
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262.79p
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?
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5.00% 0.00%
Initial chargeSome 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!
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0.70%
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).
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0.70%
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.
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5.60%
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…
The objective of the fund is to achieve a high level of income whilst maximising total return by investing primarily in high yield pan European corporate debt. The mandate also allows the managers to invest up to 30% of the fund in investment grade corporate bonds and government debt. Non sterling issues will be hedged back into sterling. Bonds issued by major governments and companies will be more stable than those issued by emerging markets or smaller corporate issuers; in the event of an issuer experiencing financial difficulty, there may be a risk to some or all of the capital invested. Any historical or current yields quoted should not be considered reliable indicators of future performance.
Fund summary
| Sector | £ High Yield |
| Structure | OEIC |
| Launched | March, 2014 |
| Size | £227m |
| Yield | 5.60% |
| Charging basis | Income |
| Dividends paid | 31 Mar, 30 Jun, 30 Sep, 31 Dec |
Charges
| Standard initial charge | 5.00% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 0.70% |
| Ongoing charges figure | 0.70% |
Allocation
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Investment process
The managers undertake an active approach to portfolio management which incorporates market/sector views and research driven stock selection with the view to highlighting securities that are on attractive valuations relative to peers. Analysis generated outside the team is important and the managers maintain close links with preferred city brokers.
This fund retains some flexibility to invest outside of the high yield bond market to enable the manager to maximise investment opportunities and reduce risk during market dislocations. The fund is managed by the established team of Paul Reed and Paul Causer.
Manager research
Average monthly relative returns
- 16/17 0.04%
- 17/18 -0.41%
- 18/19 0.05%
- 19/20 0.00%
- 20/21 0.00%
Bestinvest MRI
- 3 years 0.00%
- 5 years 0.00%
- Career 0.04%
- 3 years 0.00%
- 5 years 0.00%
- Career 99.30%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Paul Causer / Paul Read
•Causer is an Economics graduate from the LSE who began his career in 1983 in research and credit analysis with Asahi Bank. He moved on to their Treasury department trading securities and derivatives and then managed multi-currency portfolios from 1990. He joined Perpetual (now Invesco) in 1994 and is now co-head of fixed interest. •Read graduated from the University of Toronto with an Economics & History degree and gained an MBA from INSEAD. He began his career with UBS in 1985, moving to Merrill Lynch in 1986 where he was a director of fixed income trading in Tokyo from 1991 and in Paris from 1993. He joined Perpetual (now Invesco) in 1995 and is now co-head of fixed interest.
Track record
Paul Causer / Paul Read have 17.9 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.04%. During the worst period of relative performance (from March 2011 - July 2012) there was a decline of 8% relative to the index. The worst absolute loss has been 12%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.
Periods of worst performance
| Absolute | -12.00% (December 2007 - October 2008) |
| Relative | -8.00% (March 2011 - July 2012) |
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
| 2.1717% | Dresdner Fund And Trust No 1 8.151% Bds 30/6/2031 Usd1000 |
| 1.8637% | Nationwide Building Society Rst Perp Contg Cnv Add Cap Sec Gbp T1 |
| 1.7789% | Sisal Pay Spa Frn 17/12/26 Eur100000reg S |
| 1.6941% | Boparan Finance Plc 5.5% Bds 15/07/21 Gbp100000reg S |
| 1.4718% | Shop Direct Finding Plc 7.75% Bds 15/11/22 Gbp100000 |
| 1.4543% | Vodafone Group Capital Secs 03/10/78 Gbp1000reg S |
| 1.3743% | Odyssey Europe Holdco Sarl 8% Bds 15/05/23 Eur100000 |
| 1.3032% | Hema Bondco Frn 21/07/22 Eur1000 |
| 1.2905% | Rac Bond Co 5% Sec Nts 06/05/46 Gbp B1 |
| 1.27% | Sunshine Mid Bv 6.5% Bds 15/05/26 Eur100000reg S |
| Source: Trustnet |
Sector breakdown
| Banks | 26.00% |
| Foods | 7.00% |
| Telecommunications | 7.00% |
| Automobiles | 6.00% |
| Services | 5.00% |
| Media | 5.00% |
| Leisure | 5.00% |
| Retail | 4.00% |
| Services | 3.00% |
| Oil & Gas Equipment & Services | 3.00% |
Portfolio
A small portion of the portfolio may be held in quality bonds, but the majority will be in sub-investment grade issues. A portion of unrated issues may also be held, regardless of their perceived credit rating. The fund will normally consist of approximately 100 positions.
Constraints
There are no specific restraints on the weightings of sectors or individual holdings, but diversification is seen as an essential characteristic of the portfolio.