SVS Brown Shipley Sterling Bond Fund
The aim of the SVS Brown Shipley Sterling Bond Fund is to offer investors a “Risk Conscious Route to Income”.
Launched – July 1995
Fund size: £84.7m at 31 January 2017
Ongoing Fund Charge: A Acc and A Inc Share Class 1.07%
Payment dates – Last day of February, 31 May, 31 August, 30 November
Latest fund prices
Distribution Yield – 3.86%
Underlying Yield – 1.68%
Latest fund prices
SVS Brown Shipley Sterling Bond Fund Commentary 31 January2017
January started in a similar vein to the second half of 2016. Bond yields in the UK continued to rise, supported by strong economic data in the UK. House prices grew ahead of expectations, inflation hit a 2 year high (CPI at 1.6%) and employment remained robust. This led to the 10 year gilt yield hitting 1.51% on the 26 January, the first time it has reached this level since May last year. The market has started to look through the Brexit risks and believes the Bank of England may have acted too hastily when it cut the base rate to a record low 0.25% in August 2016. By 26 January the probability of a rate increase at or before the December MPC meeting had steadily risen from 23% at the year-end up to 51%. However at its 26 January meeting the MPC remained stubbornly dovish. It did increase its 2017 GDP forecast; however it pointed to continued weak wage growth in the UK – perhaps indicating there is still slack in the UK economy. Post the meeting gilt yields have reversed somewhat, the 10 year gilt yield fell to 1.42%, and has continued to fall at the start of February. However if GDP growth does hold up and inflation runs significantly above the 2% target for a prolonged period the Bank of England may finally move into a policy tightening cycle, benefitting our shorter duration stance.
Source: Bloomberg 31/01/2017
Matthew Brennan, Fund Manager
For further fund information, investor enquiries, dealing enquiries and valuations please contact Smith & Williamson:
By Phone: 0141 2221151
SVS Brown Shipley Funds
Smith & Williamson Fund Administration Limited (trading as St Vincent St Fund Administration)
For investment related queries please use the contact form below.
The information contained on this webpage is gathered by fund managers and analysts and is being provided to professional investors and advisors for information purposes only. It is designed for Professional Investors only and should not be circulated to Retail Investors.
The value of investments and any income from them may fluctuate and is not guaranteed. Investors may not get back the amount originally invested. Currency fluctuations may cause the value of underlying investments to go up or down. Changes to interest rates can affect the values of high yielding bonds. Past performance is no guarantee of future performance.
For further information please contact:
Head of Fixed Income and Senior Fund Manager
Competitive income in a risk conscious manner - our discussions with investors tells us that this is what they want. We never forget just whose money it is.
Find out more about the SVS Sterling Bond Fund