Threadneedle European Bond R

Purely invested in quality Government bonds, Sovereigns and Supranationals.

  • 88.42p
    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.

  • -
    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?

  • 3.75% 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).

  • 1.18%
    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.

  • 0.20%
    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 02 December 2020

Fund summary

Sector Global Bonds
Structure OEIC
Launched April, 1998
Size £141m
Yield 0.20%
Charging basis
Dividends paid

Charges

Standard initial charge 3.75%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.18%

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Investment process

The aim of the Fund is to achieve a total return primarily by way of income with some capital growth, by investing in European public sector sovereign bonds and corporate bonds, issued by companies domiciled in Europe or with significant European operations, denominated in a range of European currencies. The Fund has the flexibility to invest in bonds issued by Eastern European currencies.

Manager research

Average monthly relative returns

  • 15/16 -0.54%
  • 16/17 0.50%
  • 17/18 -0.13%
  • 18/19 -0.15%
  • 19/20 0.24%

Bestinvest MRI

  • 3 years -0.01%
  • 5 years -0.01%
  • Career 0.04%
  • 3 years 58.30%
  • 5 years 60.60%
  • Career 78.80%

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

Martin Harvey

Harvey joined Threadneedle in July 2006 as a Trainee Fund Manager in the Government Bonds team with responsibility for macroeconomic analysis and portfolio construction. Before joining Threadneedle, he worked for HSBC as a research assistant. He graduated in 2006 from the University of Bath with a BSc (Hons) in Economics.

Track record

Martin Harvey has 10.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.04%. During the worst period of relative performance (from April 2014 - March 2020) there was a decline of 15% 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 79%.

Periods of worst performance

Absolute -9.00% (November 2014 - June 2015)
Relative -15.00% (April 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.

Allocation

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Top 10 holdings

Data accurate as at 31 May 2020

6.5% Hm Treasury United Kingdom Dmo 1.75% Treasury Gilt 22/01/49 Gbp0.01
4.9% France Oat 0% Bds 25/03/25 Eur1
4.7% Gov Of Italy 0.05% 15/01/2023
4.5% Adif Alta Velocida 0.8% Nts 05/07/23 Eur100000
4.1% Gov Of Italy 0.35% 01/02/2025
3.7% Spain(Kingdom Of) 0.35% Bds 30/07/23 Eur1000
3.5% Italy(Republic Of) 1.2% Bds 01/04/22 Eur1000
3.4% Netherlands(Kingdom Of) 0% Bds 15/07/30 Eur1000
3.3% Italy(Republic Of) 5.5% Bds 01/11/22 Eur1000
2.6% Gov Of Ireland 0.40% 15/05/2035
Source: Trustnet

Sector breakdown

Government Bonds 48.00%
Government Agency Bonds 8.00%
Cash Derivatives 7.00%
Banks 6.00%
Utilities 5.00%
Government Guaranteed 4.00%
Money Market 4.00%
Government Bonds 4.00%
Real Estate 2.00%
Government Bonds 2.00%

Key Investor Information

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