Threadneedle Strategic Bond C1

  • 47.25p
    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!

  • 1.25%
    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).

  • 1.43%
    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.

  • 2.70%
    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 19 October 2020, fund data last updated 09 December 2011

The fund's objective is to achieve total return principally by way of income. It invests in a portfolio of primarily UK and European corporate bonds, including both investment grade (higher quality) and high yield securities - typically there will be around 60% in quality bonds, but this will vary according to market conditions. Threadneedle's fixed interest team is well resourced and they follow a pragmatic investment approach with an emphasis on absolute returns.

Fund summary

Sector £ Strategic Bond
Structure OEIC
Launched
Size £226m
Yield 2.70%
Charging basis Capital
Dividends paid 4th day of each month

Charges

Standard initial charge 3.75%
Initial charge via Bestinvest 0.00%
Annual management charge 1.25%
Ongoing charges figure 1.43%

Allocation

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Investment process

The fund invests primarily in UK and European fixed interest securities, split between investment grade (higher quality) as well as high yield (lower quality) bonds. The portfolio primarily consists of corporate bonds, but securities issued by governments and supranational borrowers may also be included. Non-sterling bonds are hedged back to sterling. The named manager is responsible for the high yield portion, whilst the quality bonds are selected by Threadneedle’s Investment Grade team. The mix between the two is agreed at monthly asset allocation meetings and will vary according to prevailing economic and market conditions; the neutral split is 60% investment grade and 40% high yield. Performance is derived primarily from asset allocation, managing credit specific risk and duration/yield curve positions (i.e. strategic and tactical bets). However, the majority of research time is focused on bottom up analysis (credit specific risk) and stock selection. To aid the fund can draw on Threadneedle's large team of credit specialists.

This fund is managed by the highly experienced Barrie Whitman, who has a creditable track record. However, in 2007 we made the decision to remove the fund from our rated funds list, reducing our rating to a hold (two stars). Whilst returns relative to the peer group have been respectable, the fund's sector is very competitive and we believe there are higher conviction alternatives.

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

Others 37.00%
BBB 19.00%
BBB- 16.00%
BBB+ 14.00%
Others 11.00%
BB+ 9.00%
BB- 7.00%
BB 7.00%
B 6.00%
B+ 3.00%

Portfolio

The portfolio's neutral split is 60% investment grade and 40% high yield corporate bonds, the High Yield proportion will be managed between 30% and 50%. The fund currently has approximately 350 holdings.

Key Investor Information

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