Schroder Sterling Corporate Bond Fund Z Accumulation GBP

Sterling Bonds

New for 2019. A fund that aims to tread carefully

Schroder Sterling Corporate Bond is a newcomer to our corporate bond selection for 2019, thanks to its consistently excellent performance and decent yield of 4.4%.

Jonathan Golan, who has run the fund since 2017, has worked at Schroders since 2013. He says his expertise lies in credit analysis, credit strategy, financial modelling and portfolio construction.

Golan invests at least 80% of the fund’s assets in bonds denominated in or hedged back into sterling. He can have up to 20% in bonds rated below investment-grade or unrated securities. At the end of 2018, the fund had 17% in this area, as well as almost 10% in sovereign and foreign government stock. ­The lion’s share of assets, almost 60%, is in BBB-rated stock, the bottom end of the investment-grade scale. ­

The largest sector weightings in both absolute and relative terms are industrials and financials, where it has respectively 44% and 32% of assets deployed. Eight financials firms make up its top 10 holdings, including Yorkshire Building Society, Credit Suisse and CYBG, a holding company that owns Clydesdale Bank, Yorkshire Bank, Virgin Money UK and the app-based bank B.

Golan believes global credit valuations and growth peaked in the first and second quarters of 2018 respectively. He says: “A period of decelerating growth and tightening monetary conditions means we ought to tread carefully by balancing the portfolio between attractive idiosyncratic investment opportunities and a challenging macro backdrop.”

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Schroder Sterling Corporate Bond Fund Z Accumulation GBP
Manager
Schroder Unit Trusts Limited
Type
Open Ended Investment Company
ISIN
GB0009379370
Sector
£ Corporate Bond
Launched
11/08/1995
OCF
0.62 %
Risk Rating
4
3 Year Sharpe
1.12
3 Year Alpha
2.11
Yield
3.7 %
Benchmark
ICE BofAML Sterling Corp&Coll TR EUR
The Fund aims to provide income and capital growth by investing in fixed and floating rate securities issued by UK companies and companies worldwide.
Holding %
Long Gilt Future Bond 27/Mar/2019 G H9 Comdty 7.73 %
Euro BOBL Future Mar19 5.25 %
Yorkshire Building Society 3.5% 2.38 %
Credit Suisse Group AG 2.12% 2.25 %
Western Power Distribution plc 3.5% 1.92 %
Euro BUND Future Mar19 1.83 %
British Telecommunications plc 3.62% 1.83 %
Cybg Plc 4% 1.82 %
Assura Plc 3% 1.74 %
Ado Properties S.A. 1.5% 1.73 %
Name
Schroder Unit Trusts Limited
Address
EC2Y 5AU, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Jonathan Golan
Joined 02/28/2017

Data provided by Morningstar.

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