Investec Strategic Bond A

Invests predominantly in sterling denominated investment grade and sovereign bonds.

  • 0.00p Price (Inc)
  • 0.00p Price (Acc)
  • 0.00% Initial charge
  • 1.00% Annual management charge
  • 1.11% Ongoing charges
  • 0.00% Yield

Fund data last updated 30 November 2009

The core element of the fund is investment grade and sovereign bonds. However, the fund can invest up to 20% in high yielding bonds as well as investments in currencies and Emerging Market debt. The aim is to achieve an above average income and capital growth. The process focuses firstly on broader macro themes (global perspective) to define the initial universe and then due diligence is carried out on individual bonds.

Fund summary

Sector £ Strategic Bond
Structure X-OEIC
Launched October, 1991
Size £80m
Yield 0.00%
Charging basis Income
Dividends paid 28 Feb, 31 May, 31 Aug, 30 Nov

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 1.11%

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Investment process

This is a total return sterling denominated investment grade (quality bonds) corporate bond fund that offers investors the prospect of a reasonable level of income and the opportunity for capital gains. Broadly speaking this is a conservatively run fund, although it does have some unusual attributes in that the fund's remit allows it to invest up to 20% in high yielding bonds as well as currencies and Emerging Market debt. The investment process of this fund focuses firstly on broader macro themes (Investec's economic view of the world and affect on financial markets) to define the initial universe. The macro evaluation is used to help frame investments in currencies and the fund can access a range of 60. Emerging Market debt is done on a far more stock specific basis. Investec has a specialialist team that focuses on this. The mandate also allows the managers to use derivatives where they find arbitrage opportunities in the fixed income market.

Essentially this is quality portfolio of investment grade bonds, and whilst the fund has achieved credible returns relative to the peer group, in what is very a competitive sector we have higher conviction towards alternative funds.

Manager research

Average monthly relative returns

  • 14/15 0.00%
  • 15/16 0.00%
  • 16/17 -0.36%
  • 17/18 -0.03%
  • 18/19 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career -0.22%
  • 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.

John Stopford

Stopford was appointed Head of Fixed Income in 2003. He moved to Investec’s London office after a stint in South Africa where he was made responsible for the South African fixed income business following the merger between Investec and Guinness Flight in 1998, helping grow SA’s fixed income assets under management from £1.5bn to £5bn in 5 years. Previously, he was responsible for Guinness Flight’s investments in emerging bond and currency markets in London. Prior to joining Guinness Flight in 1993, he worked in London and Tokyo as a specialist Global Bond and Currency Portfolio Manager for Mitsui Trust Asset Management. Stopford graduated from Pembroke College, Oxford University with an MA (Honours) degree in Chemistry. He is also a CFA charterholder.

Track record

The track record of John Stopford 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 -5.00% (July 2005 - May 2006)
Relative -6.00% (July 2004 - February 2006)

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.

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Top 10 holdings

Data accurate as at 31 August 2016

11.9% Queensland Treasury Corp 5.5% Bds 21/06/21 Aud1000
8.4% Treasury 2% Gilt 07/09/25 Gbp0.01
8.2% Province Of Quebec Canada 4.25 Dec 01 21
5.6% Spain(Kingdom Of) 1.95% Bds 30/04/26 Eur1000
3.1% United States Of Amer Treas Bonds 3.125% Bds 15/08/44 Usd1000
2.7% Czech Republic Government Bond 1 Jun 26 26
1.8% Hungary 5.75% Nts 22/11/23 Usd2000
1.6% Indonesia(Republic Of) 6.875% Bds 17/01/18 Usd1000 `144a`
1.5% Brazil(Federative Republic Of) 10% Bds 01/01/21 Brl1000
1.2% Mexico(United Mexican States) 8% Bds 11/06/20 Mxn100
Source: Trustnet

Sector breakdown

Government Bonds 41.00%
Investment Grade Corporate Bonds 20.00%
Debt 18.00%
High Yield Bond 17.00%
Money Market 3.00%
Mutual Funds 1.00%

Portfolio

The portfolio holds around 80-120 issues. Maximum stock specific weighting to AAA: 10%, AA: 5%, BBB: 2.5%. High Yield maximum 20%. Max cash 10%. Whilst all non sterling exposure is hedged, active currency positions may be taken independent of sterling.

Key Investor Information - Income

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Key Investor Information - Accumulation

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