Schroder Absolute Return Bond A

A global hybrid bond portfolio focusing on maximising absolute returns.

  • 39.93p
    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.

  • 101.10p
    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!

  • 1.00%
    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).

  • 1.14%
    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.

  • 1.70%

    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 18 September 2020

The fund's objective is to to outperform the Merrill Lynch Sterling Broad Market All Stocks by 2% to 2.5% on a 3 year rolling basis whilst at the same time aiming to achieve absolute returns. Investment is diversified globally across a variety of fixed interest securities. The maximum exposure to higher yielding securities is 40%.

Fund summary

Sector Targeted Absolute Return
Structure UNIT TRUST
Launched September, 2003
Size £55m
Yield 1.70%
Charging basis Capital
Dividends paid 28 Feb 31 Aug


Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.14%


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}

Investment process

Invests predominantly in international high quality bonds, these may include government, supranational or corporate issues, there is also the potential to take positions in emerging market and higher yielding corporate debt. The duration profile of the fund is actively managed between 0 to 9 years. Whilst there is no minimum exposure to sterling denominated bonds, the maximum unhedged non sterling position is 20%. Top down decisions on market and sector allocation are determined by the Global Fixed Income team. Individual security selection to reflect these views is then delegated to specialist regional teams. Derivatives may be used as part of the manager's strategy to manage duration, yield curve and credit exposure.

Manager research

Average monthly relative returns

  • 15/16 -0.02%
  • 16/17 0.32%
  • 17/18 -0.19%
  • 18/19 0.16%
  • 19/20 -0.06%

Bestinvest MRI

  • 3 years -0.03%
  • 5 years 0.04%
  • Career 0.07%
  • 3 years 56.00%
  • 5 years 73.60%
  • Career 88.30%

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

Bob Jolly / Gareth Isaac

Jolly joined Gartmore in 1982 and is currently responsible for global fixed income portfolio construction. After starting his investment management career in active fixed income, he transferred to the structured fixed income team in 1989.  He has extensive experience in managing a range of both active and quantitative fixed income, derivative and currency processes and has a detailed understanding of risk modelling and portfolio construction. Jolly is a member of the Securities Institute and is a CFA Charterholder. Isaac joined Schroders in 2011. In 2009 following their purchase of SGAM he joined GLG Partners where he was a Fixed Income Fund manager. Isaac has previously worked as a fund manager at Societe Generale Asset Management in Paris (2007), Axa Investment Managers (2004) and Newton Asset Management (1998). Prior to this he also worked at Manulife Financial as a fund administrator and Midland Security Services as a Scrip Dividend Clerk. He is a Level II candidate in the Chartered Financial Analyst Programme and has a BSc in Business Decision Analysis from the University of Glamorgan and an HND in Mathematics from the University of the West of England.

Track record

Bob Jolly / Gareth Isaac has 8.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.07%. During the worst period of relative performance (from September 2014 - March 2020) there was a decline of 10% relative to the index. The worst absolute loss has been 9%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 88%.

Periods of worst performance

Absolute -9.00% (January 2020 - March 2020)
Relative -10.00% (September 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.


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}

Top 10 holdings

Data accurate as at 31 July 2020

3.72% Sisf China Local Currency B I Acc
3.44% Yorkshire Building Soc Frn 21/11/2024 - Regs
3.37% Morgan Stanley Bv Equity Lkd Nts 08/11/22 Usd 9522
3.01% Santander Uk Plc Fltg Rt Cvd Bds 12/02/24 Gbp100000
2.93% Tsb Bank Plc Frn 15/02/2024 Regs
2.9% Lloyds Bank Plc Frn 16/05/2024 Regs
2.87% Coventry Bldg Society Frn 15/01/2025 Regs
2.83% Spain(Kingdom Of) 1.25% Bds 31/10/30 Eur1000
2.59% Skipton Building Society Frn 22/02/2024 Regs
2.49% Royal Bank Of Canada Fltg Rt Cvd Bds 03/10/24 Gbp100000
Source: Trustnet

Sector breakdown

Financials 23.00%
Mortgage & Secured Bonds 22.00%
Industrials 16.00%
Asset/Mortgage-Backed Securities 7.00%
Money Market 6.00%
Derivatives 6.00%
Unit Trusts 5.00%
Asset/Mortgage-Backed Securities 4.00%
Government Bonds 4.00%
Mortgage & Secured Bonds 2.00%


Approx 320 holdings.


Investment Grade: 0-75%. High Yield and Emerging market exposure 0-40%. Max non sterling exposure 20%, 5% max. per currency.

Key Investor Information - Income


Key Investor Information - Accumulation