fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

Invesco Tactical Bond (UK) Y

A focused, best ideas, fixed income portfolio with no formal asset allocation constraints.

  • 215.00p
    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.

  • 257.52p
    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!

  • 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).

  • 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.

  • 3.00%
    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 07 May 2021, fund data last updated 14 November 2019

The objective of the Fund is to achieve income and capital growth over the medium to long term (3 to 5 years plus). This is a focused, best ideas fund with no constraints, enabling the managers to invest globally across the quality and high yield corporate and government bond markets and their respective derivative instruments. Whilst the managers aim to at least match cash or quality bond returns over a market cycle, this is not an absolute return product and it will embrace market risk if there is an opportunity to deliver additional returns.

Fund summary

Sector £ Strategic Bond
Structure OEIC
Launched March, 2014
Size £680m
Yield 3.00%
Charging basis Income
Dividends paid 30 Jun, 31 Dec

Charges

Standard initial charge 0.00%
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 fund aims to maximise total return primarily through a flexible allocation to fixed interest securities and cash. The fund has no formal asset allocation constraints - the managers may invest in cash, sovereign debt, quality and higher yielding corporate bonds, in addition some non sterling currency positions may be included. The fund mandate also enables the managers to use derivative instruments to manage interest rate risk and to gain credit exposure in the place of cash securities. The fund is defined as an unsophisticated UCITS 3 product, consequently it is unable to provide leveraged market exposure.

Paul Causer and Paul Read are arguably the most established portfolio management partnership in the fixed income retail space. This fund is designed to be their most flexible investment mandate. They cemented their reputation in more targeted fixed income mandates, but we are confident that their skills should be transportable to this less constrained fund.

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

5.6631% United States Of Amer Treas Notes 2.25% Bds 15/02/27 Usd1000
3.6834% Enel Spa 7.75% Bds 10/09/75 Gbp100000reg S
2.2006% United States Of Amer Treas Bills 0.5% Tnt 15/01/28 Usd100
2.1212% United States Of Amer Treas Bills 0.25% Tb 15/07/29 Usd100
1.8997% Rbs Capital Trust Ii 6.425% Bds Perp Usd1000
1.8571% Pinewood Finance Ltd 3.25% Bds 30/09/25 Gbp100000reg S
1.627% Italy(Republic Of) 2.1% Bds 15/07/26 Eur1000
1.4528% General Motors Financial Co Inc 0.221% Bds 26/03/22 Eur1000
1.3073% Hsbc Bank Plc Undated Fltg Rate Prim Cap Nts Usd Jun85
1.1347% Greece(Republic Of) 4.375% Bds 01/08/22 Eur1000
Source: Trustnet

Sector breakdown

Banks 35.00%
Government Bonds 12.00%
Automobiles 10.00%
Utilities 4.00%
Insurance 4.00%
Telecommunications 4.00%
Media 3.00%
Technology 2.00%
Money Market 2.00%
Manufacturing 2.00%

Portfolio

The portfolio is well diversified with over 150 holdings. Around a quarter of the fund is held in cash, core government bonds and bonds maturing within one year.

Constraints

The fund has no formal sector constraints. Maximum 20% unhedged non-sterling exposure. Maximum 20% cash, 80% near cash.

Key Investor Information - Income

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Key Investor Information - Accumulation

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