Schroder Strategic Credit L

  • 95.36p
    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.

  • 191.00p
    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!

  • 0.50%
    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).

  • 0.67%
    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.

  • 4.40%
    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 20 January 2021

A total return bond fund which seeks to outperform 3 month UK Treasury bills and its peer group the IA UK Other Bond Sector. The fund invests primarily through a flexible allocation to investment grade bonds, non-investment grade bonds and derivative instruments. The fund may use derivative instruments to leverage exposure across credit markets, this could include going short as well as long across credit positions. All currency exposure is hedged back to sterling.

Fund summary

Sector £ Strategic Bond
Structure OEIC
Launched April, 2006
Size £673m
Yield 4.40%
Charging basis Capital
Dividends paid 28 Feb, 31 Aug

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.50%
Ongoing charges figure 0.67%

Allocation

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Investment process

The management seek to discover securities that are mis-priced based on the belief that credit investors process company information inefficiently in the short term. Individual positions are determined with close reference to accountancy data. A companies future projected cash-flow is particularly important and the quality of the management is explicitly rated. A rating is then applied to each potential stock. The overall sector allocation of fund follows the model portfolio which is based on the managers' macro projections. The funds mandate allows it to invest in rated and un-rated securities including bonds, notes of fixed and variable interest, preference shares, equities, convertible and other securities issued by government, quasi-government, supranational, bank and corporate entities.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.01%
  • 18/19 0.16%
  • 19/20 0.19%
  • 20/21 -0.06%

Bestinvest MRI

  • 3 years 0.10%
  • 5 years 0.00%
  • Career -0.08%
  • 3 years 50.00%
  • 5 years 0.00%
  • Career 38.60%

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

Peter Harvey

Harvey joined Cazenove Capital in 2005. He is Head of Fixed Income with specific responsibility for credit strategy and he is manager of the Cazenove UK Corporate Bond Fund and the Cazenove GBP Bond Fund. He joined from F&C Management Ltd where he had been Head of UK Credit. During his eleven years at F&C, he also ran funds covering emerging market corporate bonds, high yield and distressed debt. Before joining F&C, he spent three years with Lloyds Bank Capital Markets Group. He graduated with a 2.1 degree from the University of St Andrews. He is a Director of Cazenove Capital and has 15 years of experience analysing and investing in corporate debt.

Track record

Peter Harvey has 9.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.08%. During the worst period of relative performance (from January 2000 - October 2006) there was a decline of 13% relative to the index. The worst absolute loss has been 7%.

Periods of worst performance

Absolute -7.00% (December 2007 - October 2008)
Relative -13.00% (January 2000 - October 2006)

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 July 2020

1.63% Numericable Sfr 7.375% Bds 01/05/26 Usd200000
1.51% Koninklijke Kpn Nv 7% Bds 28/03/73 Usd1000144a
1.41% Pinewood Finance Ltd 3.25% Bds 30/09/25 Gbp100000
1.37% Merlin Entertainments Plc 5.75% Bds 15/06/26 Usd200000
1.34% Nidda Healthcare Hldgs 3.5% Bds 30/09/24 Eur100000 144a
1.32% Quilter Plc 4.478% Nts 28/02/28 Gbp200000
1.16% Rl Finance Bonds 6.1250 30/11/2043 Regs
1.14% Sainsbury(J) 2.875% Undated Bds Gbp100000
1.1% Talk Talk Telecom Group Plc 3.875% Bds 20/02/25 Gbp100000
1.04% Arqiva Broadcast Finance Pl 6.75% Bds 30/09/23 Gbp1000
Source: Trustnet

Sector breakdown

Industrials 66.00%
Financials 28.00%
Utilities 4.00%
Mortgage & Secured Bonds 2.00%
Money Market 1.00%

Portfolio

Net single issuer exposure: Investment grade-8% max. BB-6% max. B-4% max. The portfolio will have roughly 100 positions whichis considered appropriate for risk controls.

Key Investor Information - Income

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Key Investor Information - Accumulation

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