Royal London Sterling Credit M

  • 127.10p
    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.

  • 157.50p
    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!

  • 0.45%
    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).

  • 0.47%
    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.

  • 2.90%
    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 14 January 2021

The fund seeks to maximise investment return (predominantly income with some capital growth) over the medium to long term from a portfolio consisting predominantly of sterling denominated, quality corporate bonds. The fund sets itself apart from its peer group by typically including a higher weighting to unrated bonds / asset backed securities. Traditionally this policy has led the fund to overweight the property, leisure, investment trust sectors and structured credit.

Fund summary

Sector £ Corporate Bond
Structure OEIC
Launched
Size £2,838m
Yield 2.90%
Charging basis Income
Dividends paid 31 Mar, 30 Jun, 30 Sep, 31 Dec

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.45%
Ongoing charges figure 0.47%

Allocation

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Investment process

The mandate allows for up to 10% to be invested in gilts, otherwise it is largely invested in sterling denominated corporate bonds, exposure to high yield bonds is generally no more than 5%. The fund's headline duration will tend to be close to its reference benchmark (the iBoxx Sterling Non-Gilt All Maturities Index) of about 7 years, although its effective duration maybe less than this. Within the quality corporate bond market, the emphasis will be towards the lower end of the credit spectrum. Credit research is undertaken on a sector basis. The managers have identified the off index, unrated and structured debt markets as a valuable source of portfolio alpha, which has led the fund to traditionally being overweight the property, leisure, and investment trust sectors. In addition, these sectors invariably offer asset security for bondholders.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

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

Track record

Periods of worst performance

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Relative 0.00% ()

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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Sector breakdown

Corporate Bonds 29.00%
Financial Services 18.00%
Insurance 14.00%
Property 11.00%
Utilities 9.00%
Real Estate 6.00%
Consumer Services 4.00%
General Industrials 3.00%
Consumer Goods 2.00%
Telecommunications 2.00%

Portfolio

Unrated bonds will account for between 20-30% of the portfolio. Gilts may account for between 0-10%. Number of holdings: 100-200, predominantly investment grade corporate bonds.

Key Investor Information - Income

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Key Investor Information - Accumulation

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