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!

MI TwentyFour Dynamic Bond I NET

A more focused, best ideas mandate investing across the credit quality spectrum with a focus on Pan European credits and MBS.

  • 11500.11p
    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.

  • 18872.83p
    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!

  • 0.75%
    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).

  • 0.77%
    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.

  • 4.20%
    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 11 June 2021

This fund aims to provide an attractive level of income and take advantage of potential opportunities for capital growth. It is a more focused, best ideas mandate investing across the credit quality spectrum with a focus on pan european credits and mortgage backed securities. Derivative instruments can be used to manage interest rate and credit risk, but will not be used to leverage the portfolio. All non-sterling exposure is hedged. The fund falls within the IA Strategic bond peer group.

Fund summary

Sector £ Strategic Bond
Structure OEIC
Launched April, 2010
Size £1,870m
Yield 4.20%
Charging basis 50% Income 50% Capital
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 0.75%
Ongoing charges figure 0.77%

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Investment process

This is an unconstrained fixed income mandate seeking to provide an attractive level of income and take advantage of potential opportunities for capital growth. Broad asset allocation is guided by monthly investment committee meetings with subsequent adjustments made to reflect market conditions and availability of security specific opportunities. Portfolio duration will always be positive and non-sterling currency exposure generally hedged back to sterling. Apart from a maximum allocation to high yield bonds, there is no other credit quality constraint. Several members in the team have extensive experience in the pan European residential mortgage backed securities market, these securities may account for up to 50% of the portfolio. The manager can make use of currency pairs, volatility trades, CDS and LIBOR derivatives to manage portfolio volatility.

TwentyFour is a London based, fixed income boutique. The senior partners have an average of 20 years experience in fixed income markets. Dynamic Bond, as the firm’s ‘go-anywhere’ strategy, harnesses TwentyFour’s strength in multiple areas and is led by a highly experienced team. TwentyFour have indicated that they will seek to soft close this vehicle in a bid to maintain its performance edge.

Manager research

Average monthly relative returns

  • 16/17 0.19%
  • 17/18 0.22%
  • 18/19 -0.16%
  • 19/20 -0.25%
  • 20/21 0.52%

Bestinvest MRI

  • 3 years 0.04%
  • 5 years 0.10%
  • Career 0.02%
  • 3 years 80.50%
  • 5 years 97.40%
  • Career 86.20%

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

Twentyfour Asset Management

•Rob Ford. Partner/ Portfolio Manager with over 25 years of Fixed Income experience; previously Head of European ABS trading at Barclays Capital. •Ben Hayward. Partner/ Portfolio Manager with over 15 years structured finance experience; previously senior fund manager to four portfolios at Citi Alternative. •Eoin Walsh. Partner/ Portfolio Manager with over 15 years credit market experience; formerly senior portfolio manager at Citi Alternative. •Gary Kirk. Partner/ Portfolio Manager with over 25 years of credit market experience; previously head of proprietary credit trading at Wachovia. •Aza Teeuwen. Portfolio Manager with over 5 years structured finance experience; previously worked at IMC Asset Management on the structured products desk.

Track record

Twentyfour Asset Management has 11 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.02%. During the worst period of relative performance (from February 2011 - July 2012) there was a decline of 15% relative to the index. The worst absolute loss has been 11%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 86%.

Periods of worst performance

Absolute -11.00% (January 2020 - March 2020)
Relative -15.00% (February 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

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Top 10 holdings

Data accurate as at 31 July 2020

7.7% Us Treasury N/B 0.125 30/04/2022
6.94% United States Of Amer Treas Notes 0.375% Nts 31/03/22 Usd100
2.05% Nationwide Bldg 10.25 Perp
1.98% Coventry Bdg Soc 6.875 Perp (Exp Call Date - 18/09/2024)
1.14% Lloyds Bank Plc 13 Perp (Exp Call Date - 22/01/2029)
.95% Nationwide Bldg 5.75 Perp (Exp Call Date - 20/06/2027)
.91% Virgin Money 8.75 Perp (Exp Call Date - 10/11/2021)
.88% Banco Sabadell 6.5 Perp (Exp Call Date - 18/05/2022)
.88% Bracken Midco 1plc 8.875% Bds 15/10/23 Gbp100000reg S
.85% Rothesay Life 6.875 Perp (Exp Call Date - 12/09/2028)
Source: Trustnet

Sector breakdown

Banks 27.00%
Government Bonds 15.00%
Asset/Mortgage-Backed Securities 14.00%
Insurance 12.00%
Others 10.00%
High Yield Bond 8.00%
High Yield Bond 6.00%
Investment Grade Corporate Bonds 5.00%
Cash & Cash Equivalents 2.00%

Portfolio

Well diversified with over 200 individual holdings. Pan European credit focus including RMBS.The fund may also invest in government bonds.

Constraints

Minimum duration: 0 yrs. 50% maximum allocation to high yield bonds, financials or ABS.

Key Investor Information - Income

Download

Key Investor Information - Accumulation

Download