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TwentyFour Absolute Return Credit G GBP

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

PRICE (INC)

9741p

PRICE (ACC)

11443p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.25%

ONGOING CHARGE

0.39%

YIELD

1.6%

1 YEAR
-4.60%

Prices as at 18 Aug 2022.

Fund commentary last updated 23 Mar 2022.

Past performance is not an indication of future performance.

Capital at risk.

The fund aims to achieve a positive absolute return in any market environment over a period of three years while keeping a modest level of volatility. Manager Chris Bowie seeks to deliver this by investing primarily in short-duration (up to five years) investment grade bonds – these will comprise at least two-thirds of the portfolio. However, up to a third of the fund’s assets can be exposed to longer-duration investment grade bonds, government bonds, high yield bonds and asset backed securities. Though it sits in the targeted absolute return sector, this is essentially a long-only bond fund. Its largest holdings include bonds issued by NatWest Group, Orange, and Aviva. Its biggest geographical exposure is to the UK followed by Europe and North America.

Fund summary

SectorTargeted Absolute Return
StructureOFFSHORE FUND
LaunchedAugust 2015
Size£2,752m
Yield1.6%
Charging BasisIncome
Dividends paidLast day of Mar, Jun, Sep, Dec

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.25%
Ongoing Charges Figure0.39%

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