Smith & Williamson Fixed Interest A

  • 132.80p
    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.

  • 121.80p
    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?

  • 5.00% 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).

  • 1.08%
    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.

  • 1.10%
    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 18 September 2020

Fund summary

Sector £ Corporate Bond
Structure OEIC
Launched May, 1995
Size £38m
Yield 1.10%
Charging basis Capital
Dividends paid 28 Feb, 31 May, 31 Aug, 30 Nov

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.08%

Allocation

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Investment process

The objective of the Trust is to achieve a higher than average level of income. The Manager intends to achieve this by investing in fixed interest investments of predominantly investment grade quality and to retain ISA and PEP qualifying status and suitability for pension funds (ie unfranked income stream). In order to achieve the Trust’s objective, the Manager will invest primarily in sterling corporate bonds, other fixed interest securities, including gilts and permanent interest bearing securities (‘PIBS’), and preference shares in UK and European Community companies.

Manager research

Average monthly relative returns

  • 15/16 -1.20%
  • 16/17 0.31%
  • 17/18 0.21%
  • 18/19 -0.28%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career -0.08%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 54.00%

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

Chris Lynas

Chris specialises in lower risk fund management and helped develop and heads up the Investment Planning and Management Service (IPMS) at Smith & Williamson which now has funds of over £190m under management. He began his City career in 1986 at Hoare Govett prior to joining Smith & Williamson in 1990. He is a member of their Banking Committee where he advises on economic trends and he also sits on the firm's asset allocation committee advising on fixed interest investments. He has also co-authored a chapter on "Managing your investments" for Tolley's Finance & Law for the Older Client.

Track record

Chris Lynas has 14.7 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 June 1998 - January 2009) there was a decline of 26% relative to the index. The worst absolute loss has been 14%.

Periods of worst performance

Absolute -14.00% (February 2006 - January 2009)
Relative -26.00% (June 1998 - January 2009)

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

3.4% Hm Treasury United Kingdom Dmo 4.25% Gilt 07/03/36 Gbp0.01
3.4% Us Treasury Il 0.25% 2029
2.1% Tesco 1.982% Idx Lkd Nts 24/03/36(Rpi Idx)Gbp
2% Mcdonalds 5.875% 2032
1.9% National Grid Il 2021 Frn
1.9% Astrazeneca Plc 6.45% Nts 15/09/37 Usd1000
1.9% Nationwide 2% 2029
1.9% Crh 4.125% 2029
1.8% Temasek Financial I Ltd 5.125% Gtd 26/07/40 Gbp100000
1.8% Bhp Billiton Finance 6.5% Sub Nc7 Rst Nts 22/10/77 Gbp100000
Source: Trustnet

Sector breakdown

Insurance 12.00%
Consumer Goods 12.00%
Consumer Services 11.00%
Utilities 11.00%
Government Bonds 9.00%
Telecommunications 8.00%
Health Care 7.00%
Money Market 6.00%
Basic Materials 5.00%
Financial Services 4.00%

Portfolio

The fund normally holds 30 positions in its portfolio.

Key Investor Information - Income

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Key Investor Information - Accumulation

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