Scottish Widows Corporate Bond A

  • 135.00p
    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.

  • 350.90p
    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).

  • 1.11%
    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%
    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 12 October 2020, fund data last updated 01 December 2002

This fund invests predominantly in investment grade corporate bonds to provide a reasonable level of monthly income. Holdings will be denominated in Sterling, issued by companies domiciled in the UK or Europe. Economic views are combined with extensive company research to identify where the relative value resides. Experienced set of investment managers influencing the portfolio.

Fund summary

Sector £ Corporate Bond
Structure OEIC
Launched
Size £3,430m
Yield 1.70%
Charging basis Income
Dividends paid Last day of each month

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.11%

Allocation

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Investment process

The fund objective is to provide an attractive level of income without eroding the capital value, through investment mainly in corporate bonds denominated in Sterling. The portfolio is constructed using a combination of big picture macro analysis and in-depth company assessment. The team strategy toward sectors and asset classes is formed using input from the Government debt team, house economists and the corporate bond team, taking into account the economic outlook, credit cycle and any relevant industry factors. The individual stock analysis includes fundamental company research, bond structure/covenants and relative valuation, looking to identify cash generative businesses. The majority of this company analysis is carried out by the credit team, but they will maintain close dialogue with the relevant in house equity analysts. A number of key characteristics are assessed including, amongst others, extent of leverage, pricing power and event risk. Bond price driving factors are also considered for example liquidity, supply/demand and equity price behaviour.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 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

Absolute 0.00% ()
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

BBB 50.00%
A 31.00%
AA 8.00%
Non-Rated 5.00%
AAA 4.00%
BB 2.00%

Portfolio

Around 150 Sterling denominated bonds, issued mostly by UK companies with around 10% from European businesses. When appropriate, cash and Gilts will be held pending re-investment in corporates. Diversification will be gained through the wide range of sectors held.

Key Investor Information - Income

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Key Investor Information - Accumulation

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