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.

  • 11023.70p
    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.

  • 18631.16p
    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).

  • 0.78%
    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 27 January 2022, fund commentary last updated 14 January 2022

The fund aims to deliver an attractive level of income and take advantage of potential capital growth opportunities by investing in a broad range of bonds and fixed income assets. The fund is managed by fixed income boutique TwentyFour. The management team, including Gary Kirk, Eoin Walsh, Mark Holman, Felipe Villarroel, Pierre Beniguel and David Norris, primarily target investment grade bonds, high yield bonds, government bonds and asset-backed securities. Their current holdings includes US Treasury bonds and the Nationwide Building Society. The fund can use derivatives to manage interest rate and credit risk, allowing it to perform in both rising and falling rate environments.

Fund summary

Sector £ Strategic Bond
Structure OEIC
Launched April, 2010
Size £1,928m
Yield 4.30%
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 0.78%

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Investment process

This is an unconstrained and unleveraged long-only bond fund, that aims to add value through both top-down macro views and bottom-up ‘high conviction’ selection. Broad asset allocation is guided by monthly investment committee meetings with subsequent adjustments made to reflect market conditions and the availability of security-specific opportunities. Portfolio duration will always be positive, with interest rate duration currently being around 2.3 years and credit spread duration being around 3.5 years. All non-sterling currency exposure is generally hedged back to sterling. Apart from a maximum allocation to high yield bonds, there is no other credit quality constraint with assets ranging from investment grade and government bonds to emerging market sovereign bonds or bank capital perpetual bonds.

The fund benefits from both the specialist focus of TwentyFour and the vast experience of its management team who boast an average of 20 years in these markets. It has a very flexible strategy, providing the managers with the freedom to invest in a range of fixed income assets. It also allows them to take advantage of market conditions as they change over time. Being located in London and with a New York team, the managers are strongly placed to identify new investment opportunities and meet borrowers face to face. Around half of TwentyFour’s investment professionals come from outside the UK which allows dialogue with borrowers in their native language. The fund tends to have a high proportion of assets in high-yielding bonds which does increase risks. However, the managers mitigate some of these by maintaining a strong focus on liquidity. This is an attractive option for investors seeking a higher-risk strategic bond fund.

Manager research

Average monthly relative returns

  • 17/18 0.27%
  • 18/19 -0.01%
  • 19/20 0.01%
  • 20/21 0.04%
  • 21/22 0.11%

Bestinvest MRI

  • 3 years 0.05%
  • 5 years 0.08%
  • Career 0.02%
  • 3 years 82.90%
  • 5 years 96.30%
  • Career 84.40%

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

Twentyfour Asset Management

Gary Kirk – Partner, Portfolio Management, - Kirk is one of the founding partners of TwentyFour Asset Management, and a Portfolio Manager. He sits on the firm’s Investment Committee, which sets the overall risk bias for the portfolios managed by the firm. His main responsibility is managing the firm’s Multi Sector Bond team and corresponding funds. Kirk has over 33 years of experience in fixed income markets gained across a variety of senior roles in asset management and investment banking, including leadership positions at Daiwa Capital, Royal Bank of Canada, CDC, and Wachovia Bank. Eoin Walsh – Partner, Portfolio Management. – Walsh Is one of the founding partners of TwentyFour Asset Management, and a Portfolio Manager. His main responsibility is managing the firm’s Multi Sector Bond team and corresponding funds. He also sits on the firm’s Investment Committee. Walsh has over 23 years of experience in fixed income markets and prior to joining TwentyFour was a portfolio manager at Citigroup Alternative Investments, managing over $75billion of fixed income assets.

Track record

Twentyfour Asset Management has 11.7 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 14% 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 84%.

Periods of worst performance

Absolute -11.00% (January 2020 - March 2020)
Relative -14.00% (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

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Top 10 holdings

Data accurate as at 30 November 2021

6.76% United States Of Amer Treas Notes 0.125% Tnt 31/05/23 Usd100
5.45% United States Of Amer Treas Notes 0.125% Tnt 30/04/23 Usd100
2.01% Nationwide Bldg 10.25 Perp
1.92% Coventry Bdg Soc 6.875 Perp (Exp Call Date - 18/09/2024)
1.18% Nationwide Bldg 5.75 Perp (Exp Call Date - 20/06/2027)
1.1% Pension Ins 7.375 Perp (Exp Call Date - 25/07/2029)
1% Stichting 19.43648 Perp
.94% Rothesay Life 6.875 Perp (Exp Call Date - 12/09/2028)
.9% Phoenix Grp 5.75 Perp (Exp Call Date - 26/04/2028)
.86% Rothesay Life 5 Perp
Source: Trustnet

Sector breakdown

BB 37.00%
BBB 18.00%
B 18.00%
AAA 17.00%
Non-Rated 6.00%
CCC 3.00%

Key Investor Information - Income

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Key Investor Information - Accumulation

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