JPM Sterling Corporate Bond

Highly rated government and corporate bonds. Above average annual charges.

  • 60.71p
    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.

  • 105.40p
    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?

  • 3.00% 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).

  • 1.18%
    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.

  • 0.90%
    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 21 September 2020, fund data last updated 01 August 2002

The portfolio consists of Sterling denominated Government and investment grade corporate bonds. The process is well structured to add value on many levels from economic positions to in-depth analysis on the underlying companies, without increasing the level of portfolio risk. The various sections of the large fixed interest team produce valuable information that the manager can use when constructing the portfolio. Annual costs are relatively high for a mainstream bond fund.

Fund summary

Sector £ Corporate Bond
Structure OEIC
Launched August, 1980
Size £267m
Yield 0.90%
Charging basis Income
Dividends paid 31 Jan, 30 Apr, 31 Jul, 31 Oct

Charges

Standard initial charge 3.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.18%

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Investment process

This fund will invest in a portfolio of Sterling denominated Government and investment grade corporate debt issues. The fund has the ability to invest 100% in government and other public securities, when the fixed interest teams strategy decision indicates it would be prudent. With the aid of the in-house bond model, a decision is made on the direction of short-term interest rates, which enables the team to form strategy with regard to duration and yield curve positioning. Economic and relative value research is also carried out to identify preferred sectors and the portfolio manager will then focus his portfolio construction on the team's preferred areas. The individual securities will be assessed through in-depth fundamental research, carried out by the sector specialised credit analysts. The management of the bond issuers are met to enable assessment of its products, competitors, organisation, strategy and management. They compare the performance of similar companies and also use quantitative analysis to identify and evaluate trends.

Manager research

Average monthly relative returns

  • 15/16 -0.16%
  • 16/17 -0.01%
  • 17/18 -0.04%
  • 18/19 -0.02%
  • 19/20 -0.02%

Bestinvest MRI

  • 3 years -0.02%
  • 5 years -0.05%
  • Career -0.03%
  • 3 years 68.10%
  • 5 years 58.70%
  • Career 68.40%

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

Andreas Michalitsianos

Michalitsianos is a portfolio manager within the JP Morgan European Investment Grade Corporate Credit Team and is responsible for managing credit exposure across client portfolios. An employee since 2002, Michalitsianos previously worked as a portfolio manager in the Long Duration group in New York. He received a B.Sc. (Hons.) in biochemistry from the University of Warwick in England and is a CFA charterholder.

Track record

Andreas Michalitsianos has 7.1 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.03%. During the worst period of relative performance (from June 2014 - January 2020) there was a decline of 5% relative to the index. The worst absolute loss has been 6%.

Periods of worst performance

Absolute -6.00% (January 2020 - March 2020)
Relative -5.00% (June 2014 - January 2020)

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 July 2020

1.6% Edf 6.25% Bds 30/05/28 Gbp50000
1.3% Ck Hutchison Group 2% Bds 17/10/27 Gbp200000
1.2% Edp Finance Bv 8.625% Nts 04/01/24 Gbp50000
1.1% Kreditanstalt Fur Wiederaufbau Kfw 6% Bds 7/12/2028 Gbp1000
1% Natwest Group Plc Fxd To Fxd Rt Nts 19/09/26 Gbp100000
.9% Eversholt Funding Plc 6.359% Nts 02/12/25 Gbp100000
.9% Bat Capital Corp 2.125% Gtd Nts 15/08/25 Gbp100000
.9% Bouygues 5.5% Bds 06/10/26 Gbp50000
.9% Northumbrian Water Finance 1.625% Gtd Bds 11/10/26 Gbp100000
.8% Lloyds Bank Plc 7.50% Nts 15/04/24 Gbp100000
Source: Trustnet

Sector breakdown

Financials 32.00%
Utilities 18.00%
Money Market 10.00%
Non-Cyclical Consumer Goods 8.00%
Communications 7.00%
Fixed Interest 6.00%
Transport 5.00%
Capital Goods 3.00%
Cyclical Consumer Goods 2.00%
Energy 2.00%

Portfolio

Approximately 60 securities in the portfolio.

Constraints

The average portfolio credit quality must be higher than A and the lowest rating that the portfolio can hold is BBB-. There is a high level of risk monitoring including issuer limits, internal models and numerous discussions.

Key Investor Information - Income

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Key Investor Information - Accumulation

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