Merian Corporate Bond A

  • 135.10p
    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.

  • 277.30p
    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?

  • 3.50% 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!

  • 1.15%
    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).

  • 1.15%
    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.

  • 2.40%
    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 19 October 2020, fund data last updated 30 November 2009

A UK corporate bond fund whose objective is to maximise total return relative to the sector and benchmark by investing in what the manager perceives to be undervalued bonds and other debt. The fund is typically invested at least 80% in sterling denominated corporate bonds that are investment grade: that is, quality bonds. The portfolio may also be positioned to anticipate movements in the yield curve, i.e. tactical bets on changes in interest rates, in order to increase relative returns.

Fund summary

Sector £ Corporate Bond
Structure OEIC
Launched
Size £452m
Yield 2.40%
Charging basis Income
Dividends paid 31 Mar, 30 Jun, 30 Sep, 31 Dec

Charges

Standard initial charge 3.50%
Initial charge via Bestinvest 0.00%
Annual management charge 1.15%
Ongoing charges figure 1.15%

Allocation

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Investment process

This UK corporate bond fund has one of the most flexible mandates within its peer group. This allows the manager to aggressively rotate between different bonds and sectors and manage interest rate risk (duration and yield cure management) to drive returns. Portfolio risk is monitored by reference to tracking error relative to the reference benchmark, the iBoxx £ Non Gilt Index, and the peer group. Whilst the manager will take into account the market's appetite for risk in determining the portfolio asset allocation and interest rate sensitivity, the emphasis tends to be on credit selection and sector rotation to drive returns (i.e. the fund can take big bets relative to the benchmark in these areas), where the manager is more confident she can consistently generate positive relative returns.

Christine Johnson become the fund manager for this fund in April 2011 replacing Stephen Snowden, who left Old Mutual after seven years to rejoin former employer Aegon. Johnson also manages Old Mutual's Dynamic Bond fund. Whilst we like the flexibility of mandate that this fund has, the manager lacks the appropriate length of track record to quality for a Bestinvest rating. Of our rated funds in the Sterling Corporate Bond sector the five star rated Royal London Corporate Bond Trust offers the nearest equivalent investment philosophy.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%

Bestinvest MRI

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

Track record

Periods of worst performance

Absolute 0.00% ()
Relative 0.00% ()

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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Sector breakdown

Investment Grade Corporate Bonds 81.00%
Corporate Bonds 8.00%
High Yield Bond 6.00%
Others 4.00%
Money Market 1.00%

Portfolio

A portfolio of c100 individual holdings.

Key Investor Information - Income

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Key Investor Information - Accumulation

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