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TWENTYFOUR ABSOLUTE RETURN CREDIT AQN GBP

Bestinvest LogoA short-maturity investment-grade corporate bond fund targeting low volatility returns.

PRICE (INC)

10232p

PRICE (ACC)

-

INITIAL CHARGE

5%

0%

ANNUAL MANAGEMENT CHARGE

0.4%

ONGOING CHARGE

0.54%

YIELD

3.3%

1 YEAR
4.81%
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Prices as at 28 Nov 2023.

Fund commentary last updated 23 Mar 2022.

Past performance is not an indication of future performance.

Capital at risk.

The Sub-Fund aims to achieve a positive absolute return in any market environment over a period of 3 years by keeping a modest level of volatility. While respecting the principle of risk diversification, the Sub-Fund's assets are mainly exposed to the fixed-income asset class by investing in bonds and similar fixed-interest and floating-rate securities issued by corporate issuers rated with investment grade (i.e. at least BBB- (S&P and Fitch), Baa3 (Moody's) or a comparable rating of another recognized rating agency). Investments in asset-backed securities may not exceed 20% of the Sub-Fund's net assets.

Fund summary

SectorTargeted Absolute Return
StructureOFFSHORE FUND
LaunchedDecember 2015
Size£2,982m
Yield3.3%
Dividends paidMarch, June, September, November, December

Charges

Standard Initial Charge5%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.4%
Ongoing Charges Figure0.54%

Investment Process

The fund seeks to achieve target returns of 2.5% over cash after fees, with volatility below 3%. The managers describe it as “a genuinely, long-only, unlevered bond fund and easy to understand”. The process is focussed on finding bottom-up opportunities in investment-grade bonds with maturities of up to five years. In addition to that, the management team seeks to generate returns from asset-backed securities and high-conviction high-yield bonds (those rated BB only). Whilst the process focuses on the sterling-denominated market, the portfolio may also include euro and US dollar denominated issuers. The management team take high-conviction decisions based on rigorous macro-economic, technical and issuer analyses. They continually assess conditions and future developments and in line with them, allocate interest rate and credit risks with the aim of benefitting from any market environment. They select securities and instruments within the investment universe where they see the most rewarding yield and/or hedging values. They actively adapt the portfolio to invest in attractive opportunities whenever they occur.

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning