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!

Ninety One Diversified Income J

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

  • 97.00p
    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.

  • 135.40p
    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!

  • 0.55%
    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).

  • 0.69%
    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.

  • 3.80%
    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 29 October 2021

The fund aims to provide an income return with the opportunity for capital growth over at least a five-year period. It has a target return of 4% per year. Co- managers Jason Borbora-Sheen and John Stopford invest in assets that offer reliable and sustainable income and minimal volatility. Their main exposures are to blue-chip global equities, developed sovereign bonds, emerging market sovereign bonds, investment grade and high yield corporate bonds. Its holdings on the bond side include the Indonesia Treasury Bond whilst in equities it is invested in companies such as Johnson & Johnson and Home Depot. The managers use an active, bottom-up investment process.

Fund summary

Sector Mixed Investment 0-35% Shares
Structure OEIC
Launched October, 2013
Size £1,597m
Yield 3.80%
Charging basis Capital
Dividends paid Monthly

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.55%
Ongoing charges figure 0.69%

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Investment process

The bottom-up investment process seeks to identify equities or fixed income securities which can provide both sustainable income and capital stability. The managers create a portfolio based around three buckets – growth, defensive and uncorrelated. The balance of these exposures is varied to reflect cyclical opportunities and risks at the time, which are determined by a range of systematic growth scores on factors such as the yield curve and market sentiment. Risk exposures are also managed through index futures, which gives flexibility to the process and allows the managers to shift their holdings quickly when necessary. The management team believe that markets have become increasingly unstable since the financial crisis and that assets are more prone to frequent and damaging bouts of volatility. It presently has exposure primarily to equity, developed market sovereign bonds and emerging market debt. It also has exposure to investment grade corporate bonds, high yield corporate bonds, property and infrastructure and cash. The managers have an equity investment universe of around 1700 stocks. Its main geographic exposure is to the Emerging Markets, followed by the US and Europe ex-UK.

The fund strategy is simple, straightforward, competitively priced, and historically has offered lower volatility and an attractive income. It is led and supported by a well-resourced and dedicated multi-asset team. Co-managers Jason Borbora-Sheen and John Stopford can draw on Ninety One’s broader specialisms in global and regional equity, sovereigns, credit, and emerging market debt. The fund continues to deliver on a consistent basis. Over the long term it demonstrated resilience in down markets as well as participating in up markets, which has contributed to an impressive track record. This is a good option for those needing to generate an income in the multi-asset space.

Manager research

Average monthly relative returns

  • 17/18 0.18%
  • 18/19 0.10%
  • 19/20 0.13%
  • 20/21 0.03%
  • 21/22 0.33%

Bestinvest MRI

  • 3 years 0.16%
  • 5 years 0.15%
  • Career 0.21%
  • 3 years 80.50%
  • 5 years 90.70%
  • Career 98.00%

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 at Ninety One (then Investec) 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. 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 Ninety One 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 he worked for BlackRock as an analyst. Borbora-Sheen 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 7.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.21%. During the worst period of relative performance (from January 2020 - March 2020) there was a decline of 9% relative to the index. The worst absolute loss has been 8%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 98%.

Periods of worst performance

Absolute -8.00% (January 2020 - March 2020)
Relative -9.00% (January 2020 - 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 October 2021

1.9% United States Treasury Note/Bo 2 Aug 15 51
1.7% New Zealand Local Govt Fdg Agency 3.5% Bds 14/04/33 Nzd10000
1.4% Indonesia Government International 6.5% Bds 15/06/25 Idr1000000
1.3% South Africa(Republic Of) 10.5% Bds 21/12/2026 Zar1(186)
1.3% British Columbia(Province Of)Canada 4.7% Bds 18/06/37 Cad1000
1.2% Mexico(United Mexican States) 8% Bds 07/12/2023 Mxn`M20`
1.2% Brazil Notas Do Tesouro Nacional 10 Jan 01 25
1.2% Indonesia Government International 8.125% Bds 15/05/24 Idr1000000
1.2% Mexican Bonos 6.500 09/06/22
1.1% Mexican Bonos 8 Sep 05 24
Source: Trustnet

Sector breakdown

Government Bonds 25.00%
Equities 23.00%
Debt 19.00%
Investment Grade Corporate Bonds 14.00%
High Yield Bond 10.00%
Money Market 3.00%
Infrastructure 2.00%
Property 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.

Key Investor Information - Income

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Key Investor Information - Accumulation

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