Merian Monthly Income Bond R

  • 110.80p
    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.

  • 143.00p
    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!

  • 0.65%
    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).

  • 0.65%
    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.

  • 4.30%
    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 15 January 2021

A focused, hybrid bond portfolio investing in high yield and investment grade bonds and quasi equity securities, managed to maximise total returns, with the intention of at least matching cash returns. Income is distributed on a monthly basis.

Fund summary

Sector £ Strategic Bond
Structure OEIC
Launched January, 2013
Size £37m
Yield 4.30%
Charging basis Income
Dividends paid Last day of each month

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.65%
Ongoing charges figure 0.65%

Allocation

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Investment process

The fund aims to maximise total returns by investing primarily in Pan European fixed income debt, variable and zero rate bond investments, and convertible securities. All non sterling exposure will be hedged. The portfolio is concentrated, investing only in high conviction ideas. There is no formal benchmark or neutral weighting, instead weightings by credit quality will be determined purely on a relative value basis. Strategy meetings are held on a monthly basis with senior members of the OMAM fixed income team to review top down factors, stock selection meetings are held weekly. Egan retains full control over the portfolio structure - there is no committee decision making process. The primary driver of returns is expected to be asset allocation through anticipation of the credit cycle. Changes at this level are expected to be relatively gradual, whilst portfolio stock selection will be more dynamic.

Manager research

Average monthly relative returns

  • 16/17 -0.01%
  • 17/18 0.13%
  • 18/19 -0.20%
  • 19/20 0.45%
  • 20/21 0.35%

Bestinvest MRI

  • 3 years 0.20%
  • 5 years 0.14%
  • Career 0.01%
  • 3 years 99.50%
  • 5 years 99.90%
  • Career 85.30%

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

Christine Johnson

Johnson joined OMAM in September 2010 from Halbis Capital Management where she focused on sterling credit and managed global portfolios. Before this Johnson was part of the Fixed Income Team at Investec Asset Management (from Feb 2001), where she managed High Yield Credit portfolios and in June 2002 became the manager of the GS European High Income Bond Fund. Johnson previously worked at Royal and Sun Alliance Investments as a Corporate Bond Credit Analyst and at Natwest Bank, starting in 1998 as a graduate trainee working in the specialist Institutional Banking department before taking a permanent role as Assistant Manager for a dedicated portfolio of clients. Johnson was educated at the University of Manchester attaining a First Class Honours degree in Economics, graduating in 1998.

Track record

Christine Johnson has 10.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.01%. During the worst period of relative performance (from September 2010 - December 2011) there was a decline of 14% relative to the index. The worst absolute loss has been 9%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 85%.

Periods of worst performance

Absolute -9.00% (April 2015 - February 2016)
Relative -14.00% (September 2010 - December 2011)

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

3.8% Unite (Usaf) Ii Plc 3.921% Bds 30/06/25 Gbp100000
3.6% Axa 5.453% Undated Bds Gbp100000
3.4% Danske Bank A/S 2.25% Mtn 14/01/28 Gbp100000
2.2% Anglian Water Services Financing Plc 2.625% 15-Jun-2027
2.2% Mpt Operating Ptnrshp/Mpt Fin Corp 3.692% Bds 05/06/28 Gbp100000
2.2% Wessex Water Services Finance 1.5% Gtd Bds 17/09/29 Gbp200000
2.1% Aviva 6.125% Perp Sub Nts Gbp(Var)
2.1% Close Brothers Group Plc 4.25% Call Dtd Sub Nt 24/01/27 Gbp100000
2% Ibercaja Banco Sa 7% Bds 31/12/49 Eur200000
2% Marb Bondco Plc 7.0% 15-Mar-2024
Source: Trustnet

Sector breakdown

BBB 33.00%
BB 30.00%
B 19.00%
A 10.00%
Money Market 8.00%
CCC 2.00%
AA 1.00%

Portfolio

A portfolio of between 40-60 names, maximum weighting per name: 5%. Minimum exposure to high yield issues: 20%, maximum exposure to investment grade securities: 80%. Maximum cash weighting 10%. There are no formal sector constraints.

Key Investor Information - Income

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Key Investor Information - Accumulation

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