TwentyFour Corporate Bond I GBP

A core, sterling, quality corporate bond fund.

  • 10223.00p Price (Inc)
  • 12315.00p Price (Acc)
  • 0.00% 0.00%

    Initial charge
  • 0.25% Annual management charge
  • 0.49% Ongoing charges
  • 4.10% Yield

Prices as at 02 February 2015, fund data last updated 20 November 2019

A Dublin listed OEIC targeting returns in excess of the IA £ Corporate Bond peer group. Whilst the fund will be invested predominantly in £ denominated bonds, non GBP bonds hedged to sterling may also be included. Interest rate sensitivity will generally be managed to within a year of the peer group. Whilst the mandate allows the manager to invest up to 20% in high yield, large allocations are more likely when the asset class appears more distressed, current exposure is just 3%.

Fund summary

Sector £ Corporate Bond
Structure OFFSHORE FUND
Launched January, 2015
Size £892m
Yield 4.10%
Charging basis Capital
Dividends paid Jan, Apr, Jul, Aug

Charges

Initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.25%
Ongoing charges figure 0.49%

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Investment process

The fund seeks to consistently outperform IA peer group, at lower levels of volatility, by maximising income generation. The investment process combines top down asset allocation, followed by sector and credit analysis. The manager uses a proprietary credit research database to identify relative value opportunities across GBP, EUR and USD denominated securities. The main contributor to relative performance is expected to be credit selection, with more moderate contributions from asset allocation and interest rate management. Industry exposures are managed to within +/-10% of the fund's reference benchmark (the Iboxx Sterling Corporate Index). Fund duration will usually be within +/-1yr of the benchmark. The process may make use of index derivatives to manage interest rate and credit exposure, although this is likely to be more at the margin and shorter term in nature. The fund will not invest in unrated securities.

A new launch from fund management boutique TwentyFour. Fund manager Chris Bowie was recruited from Ignis in 2014, where he had successfully managed the corporate bond fund between 2009-2014. As with other TwentyFour mandates, this fund will place a heavy emphasis on adding value by credit selection. To ensure the mandate remains relatively nimble TwentyFour have indicated they will seek to cap the size of fund at around £1bn. Bowie joins TwentyFour as an equity partner.

Manager research

Average monthly relative returns

  • 14/15 0.00%
  • 15/16 0.00%
  • 16/17 0.28%
  • 17/18 -0.07%
  • 18/19 -0.23%

Bestinvest MRI

  • 3 years -0.01%
  • 5 years 0.00%
  • Career -0.11%
  • 3 years 68.40%
  • 5 years 0.00%
  • Career 26.40%

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 3.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.11%. During the worst period of relative performance (from February 2016 - August 2016) there was a decline of 6% relative to the index. The worst absolute loss has been 4%.

Periods of worst performance

Absolute -4.00% (August 2016 - November 2016)
Relative -6.00% (February 2016 - August 2016)

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.

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Portfolio

70-100 securities. Interest rate sensitivity +/- 1yr relative to reference benchmark. Industry exposures +/-10% relative to benchmark.

Key Investor Information - Income

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Key Investor Information - Accumulation

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