Ninety One Diversified Income A

A multi-asset, defensive total return vehicle, targeting an income / total return of 4% after fees over a rolling 3yr period.

  • 73.79p
    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.

  • 311.25p
    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?

  • 4.50% 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!

  • 1.50%
    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).

  • 1.65%
    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.

  • 4.10%
    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 29 May 2020, fund data last updated 01 February 2002

Fund summary

Sector Mixed Investment 0-35% Shares
Structure OEIC
Launched April, 1994
Size £1,329m
Yield 4.10%
Charging basis Capital
Dividends paid

Charges

Standard initial charge 4.50%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.65%

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Investment process

The mandate’s defensive attributes are arrived at by identifying individual securities (equity or fixed income) that offer sustainable income and capital stability. These are subsequently combined to give the optimal blend of growth vrs defensive assets, with a view to offering structural diversification and achieving the same income sustainability / capital stability outcome. The investment universe includes blue chip global equity, DM and EM sovereign bonds, IG and HYB credit, REITS, Infrastructure and FX.Portfolio risk is formally defined through exposure limits to the various asset class categories and a realised volatility of less than 50% of equities. Derivatives tend to be used relatively sparingly, in the main, they include the opportunistic use of equity index futures for protection, bond futures to manage duration risk and currency forwards as part of the FX hedge programme.Whilst the default position is to hedge FX risk to the funding currency (GBP), active FX positions can be taken.

This product has the advantage of structural simplicity and competitive pricing, led and supported by a well resourced and dedicated multi-asset team, who can draw on the asset manager's broader specialist capabilities in global / regional equity, Sovereigns, Credit and EMD. The investment philosophy focuses on capturing ‘natural’ income to achieve the income / total return objectives, with capital return contribution being a more marginal driver. Bottom up security selection and the dynamic blend of asset types both work towards achieving the income / capital sustainability outcome.

Manager research

Average monthly relative returns

  • 15/16 0.29%
  • 16/17 -0.67%
  • 17/18 -0.14%
  • 18/19 0.01%
  • 19/20 -0.80%

Bestinvest MRI

  • 3 years -0.31%
  • 5 years -0.26%
  • Career -0.27%
  • 3 years 22.40%
  • 5 years 18.40%
  • Career 14.70%

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

John Stopford / Jason Borbora-Sheen

Stopford was appointed Head of Fixed Income in 2003. He moved to Investec’s London office after a stint in South Africa where he was made responsible for the South African fixed income business following the merger between Investec and Guinness Flight in 1998, helping grow SA’s fixed income assets under management from £1.5bn to £5bn in 5 years. Previously, he was responsible for Guinness Flight’s investments in emerging bond and currency markets in London. Prior to joining Guinness Flight in 1993, he worked in London and Tokyo as a specialist Global Bond and Currency Portfolio Manager for Mitsui Trust Asset Management. Stopford graduated from Pembroke College, Oxford University with an MA (Honours) degree in Chemistry. He is also a CFA charterholder. Borbora-Sheen is a portfolio manager in the Multi-Asset team at Investec Asset Management with responsibility for the Multi-Asset Income strategy. Borbora-Sheen joined the firm to work on the income strategy as an analyst with responsibility for its equity exposure, prior to this he worked for Pan Asset Capital Management as an assistant fund manager on multi-asset portfolios. Previously, Borbora-Sheen worked for BlackRock as an analyst. Jason studied Law at Oxford University and holds an Investment Management Certificate (IMC). He has also passed Level III of the CFA Programme.

Track record

John Stopford / Jason Borbora-Sheen has 5.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.27%. During the worst period of relative performance (from October 2014 - March 2020) there was a decline of 21% relative to the index. The worst absolute loss has been 8%.

Periods of worst performance

Absolute -8.00% (January 2020 - March 2020)
Relative -21.00% (October 2014 - March 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.

Allocation

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Top 10 holdings

Data accurate as at 31 January 2020

3.8% United States Of Amer Treas Bonds 3% Bds 15/05/47 Usd100
2.7% United States Of Amer Treas Bonds 4.50% Bds 15/08/39 Usd1000
1.9% New Zealand Local Govt Fdg Agency 3.5% Bds 14/04/33 Nzd10000
1.6% British Columbia(Province Of)Canada 4.7% Bds 18/06/37 Cad1000
1.5% United States Treasury Note 4.625 Feb 15 40
1.4% Indonesia(Republic Of) 8.25% Bds 15/07/21 Idr1000 Fr0053
1.4% United States Treasury Note 4.25 May 15 39
1.3% Indonesia(Republic Of) 7% Bds 15/05/22 Idr1000000
1.3% Mexican Bonos 6.500 09/06/22
1.3% Mexico(United Mexican States) 6.5% Nts 10/06/21 Mxn100 M
Source: Trustnet

Sector breakdown

Equities 30.00%
Government Bonds 20.00%
Debt 19.00%
Investment Grade Corporate Bonds 18.00%
High Yield Bond 5.00%
Property 3.00%
Money Market 3.00%
Debt 1.00%
Foreign Exchange 1.00%

Portfolio

The vast majority of portfolio exposures are achieved through direct investment in cash securities and derivatives, as opposed to investing via funds.

Constraints

Exposure limits: DM Bonds: 25-70%, Global Equity: 0-35%, HYB: 0-35%, EMD: 0-20%, Property / Infrastructure: 0-10%.

Key Investor Information - Income

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Key Investor Information - Accumulation

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