fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

TwentyFour Absolute Return Credit G GBP

A short maturity investment grade corporate bond fund.

  • 10383.00p
    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.

  • 11798.00p
    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!

  • 0.25%
    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).

  • 0.36%
    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.

  • 3.30%
    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 23 November 2020, fund data last updated 23 July 2019

The fund launched on 28th August 2015 with the objective of delivering a return of Libor +2.5% with an annualised volatility of less than 3%. It aims to deliver this through investing in a portfolio consisting primarily (at least 2/3rds) of short dated (0-5 years) investment grade corporate bonds. Manager Chris Bowie has the discretion to add exposure to short dated higher yielding securities (minimum BB rated), longer dated securities (6-7 years) and asset-backed securities as, when, or if he feels it is appropriate. The resulting portfolio is long only, uses no leverage or complicated derivative overlays and is one of the simplest of absolute return funds in the fixed income space.

Fund summary

Sector Targeted Absolute Return
Structure OFFSHORE FUND
Launched August, 2015
Size £2,048m
Yield 3.30%
Charging basis Income
Dividends paid Last day of Mar, Jun, Sep, Dec

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.25%
Ongoing charges figure 0.36%

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Investment process

The fund's strategy focuses on shorter dated bonds and it is required to have at least 66.7% in sub five year investment grade bonds. The balancing, or non-core, component may consist of high yield bonds, asset-backed securities or longer maturity investment grade, depending on the market backdrop. Unlike the manager's core corporate bond fund, the fund also will invest in some unrated debt (circa 5-6%). Whilst the process focuses on the sterling denominated market, it may also include euro and US dollar denominated issuers. The manager uses his proprietary observatory research system to assist in qualitative stock selection, by constantly tracking the investment universe to seek out lower volatility, more predictable bond opportunities.

We believe this fund from fixed income specialists TwentyFour offers a compelling proposition. It should be able to generate a compelling return (in line with its target) whilst its low duration means it should protect capital if markets become more volatile. The relative simplicity of the portfolio, its lack of leverage, the pull to par effect that drives absolute returns and Chris Bowie’s and indeed TwentyFour’s capability as credit managers make this fund, in our opinion, a core holding for portfolios.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.15%
  • 17/18 -0.06%
  • 18/19 -0.23%
  • 19/20 -0.03%

Bestinvest MRI

  • 3 years -0.11%
  • 5 years 0.00%
  • Career -0.09%
  • 3 years 34.10%
  • 5 years 0.00%
  • Career 34.80%

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

Chris Bowie

Bowie is a partner and portfolio mananger at TwentyFour, joining in September 2014 to create and manage the Outcome and Index Driven business line. He also is a member of the firm’s Investment Committee and its ESG steering group. He has been managing fixed income portfolios for over 20 years, both across global credit and government bonds. Previously he was Head of Credit for 10 years at Ignis Asset Management and prior to that Head of Rates at AEGON Asset Management in Edinburgh between 2000-2004. From 1994 to 2000, he was a Senior Fixed Income Portfolio Manager at Murray Johnstone Ltd, which was acquired by Aberdeen Asset Management in 2000. Bowie graduated from Strathclyde University in 1992 with a BA (Hons) in Economics.

Track record

Chris Bowie has 4.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.09%. During the worst period of relative performance (from February 2016 - July 2020) there was a decline of 6% relative to the index. The worst absolute loss has been 5%.

Periods of worst performance

Absolute -5.00% (February 2020 - March 2020)
Relative -6.00% (February 2016 - July 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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Constraints

Min 2/3 invested in quality 0-5 year maturity corporate bonds.

Key Investor Information - Income

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Key Investor Information - Accumulation

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