Threadneedle Global Bond Z

Mainly government bonds but can also invest up to 30% in Emerging Market and HY debt.

  • 116.41p
    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?

  • 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).

  • 0.64%
    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.

  • 0.80%
    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 15 January 2021

A diversified portfolio of mainly government but some corporate debt from around the world. The fund benefits from a focused fixed interest department and Threadneedle's team based process which leverages off all of the regional desks. Value is added from strategic moves between credits (maximum of 30% in Emerging Market debt and sub investment grade) duration and currency.

Fund summary

Sector Global Bonds
Structure OEIC
Launched October, 2012
Size £565m
Yield 0.80%
Charging basis Capital
Dividends paid 7 May, 7 Nov

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 0.64%

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Investment process

The fund's primary aim is to generate growth in income with some capital growth through a long term investment approach. The fund invests in an internationally diversified selection of fixed income stocks denominated in a variety of currencies. The majority of the portfolio is invested in less risky investment grade bonds although it should be noted that there is some exposure to the European high yield and Emerging market debt. The structure of the fund is very much a factor of the in house view on the global macro economy which is taken to the Fixed Income level and forms the the Strategic Investment Outlook. Value is then added by making taking tactical shifts between government, credit and high yield debt along with switches between currencies. Duration is also actively managed with the aim to capture gains but is usually neutralised during bear market conditions in order to defend capital.

Manager research

Average monthly relative returns

  • 16/17 -0.07%
  • 17/18 -0.07%
  • 18/19 -0.11%
  • 19/20 0.14%
  • 20/21 0.12%

Bestinvest MRI

  • 3 years 0.05%
  • 5 years 0.00%
  • Career -0.06%
  • 3 years 85.50%
  • 5 years 78.50%
  • Career 57.50%

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

Dave Chappell / Martin Harvey

Chappell started his career in 1987 at Royal Bank of Scotland as an operations supervisor before moving to Irving Trust co as an operations manager. In 1989, he joined Scudder Investments and in 1997 became an Insurance fund manager and a US market expert in Threadneedle's Government Fixed Income Team. 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

Dave Chappell / Martin Harvey has 10.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.06%. During the worst period of relative performance (from June 2010 - December 2018) there was a decline of 10% relative to the index. The worst absolute loss has been 13%.

Periods of worst performance

Absolute -13.00% (October 2016 - January 2018)
Relative -10.00% (June 2010 - December 2018)

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

4% United States Of Amer Treas Notes 1.5% Nts 15/02/30 Usd100
3.9% Japan(Government Of) 0.3% Bds 20/12/39 Jpy50000
3.7% United States Of Amer Treas Bonds 1.5% Bds 15/08/26 Usd1000
3.4% Gov Of Italy 0.05% 15/01/2023
3.1% United States Of Amer Treas Notes 2% Nts 15/02/50 Usd100
3.1% Federal Home Loan Banks 5.5% Bds 15/07/36 Usd5000 Ser 677
3.1% Hm Treasury United Kingdom Dmo 1.75% Treasury Gilt 22/01/49 Gbp0.01
2.7% Gov Of United States 1.50% 15/07/2020
2.7% Resolution Funding Corp 0% 15/10/2020 Usd1000
2.5% France(Govt Of) 1.75% Nts 25/06/39 Eur1
Source: Trustnet

Sector breakdown

AAA 38.00%
AA 13.00%
A+ 11.00%
BBB- 11.00%
A- 6.00%
Money Market 4.00%
AA+ 4.00%
AA- 4.00%
Non-Rated 3.00%
BBB 3.00%

Portfolio

A diversified portfolio of normally 70-100 holdings.

Constraints

Maximum of 15% of the portfolio in Emerging Market debt and 15% in Sub Investment Grade Debt. Individual High Yield credits will normally not exceed 0.25%.

Key Investor Information

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