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: £43.58m at 31 January 2018
Ongoing Fund Charge: A Acc and A Inc Share Class 1.04%
Payment dates – Last day of February, 31 May, 31 August, 30 November
Latest fund prices
Distribution Yield – 3.12%
Underlying Yield – 2.01%
Latest fund prices

Ongoing Fund Charge figure is annualised based on the expenses incurred during the period 01/01/16 to 31/12/16. 

SVS Brown Shipley Sterling Bond Fund Commentary 31 January 2018

The first month of 2018 was a challenging one for fixed income, both globally and in the UK. The yield on 10-year UK gilts increased by 32 basis points to 1.51%, the highest level since January 2017 which was the peak of the Trump-induced rates move. Both US 10-year Treasury yields and German 10-year bund yields rose by similar amounts, by 30 basis points and 27 basis points respectively.* This represents a clear trend of globally rising rates, with UK and European yields now following the upwards trend set by US Treasuries which began in September.

Despite these large rates moves, the SVS Brown Shipley Sterling Bond Fund managed to return a marginally positive performance in January, up by 0.1%.* This puts it in the top performance quartile of Sterling Corporate funds in the corresponding IA Sector.**

The positive performance was aided by the fund’s credit positioning, with credit spread tightening compensating for the interest rate losses. On average sterling credit spreads tightened by 13 basis points during January.* In particular the fund’s exposure to subordinated financial bonds was a strong positive driver. The fund’s below sector average duration aided the fund’s relative performance versus peers.

*Source: Bloomberg.

**Source: Trustnet

Brown Shipley Fund Management Team

Contacts Us


For further fund information, investor enquiries, dealing enquiries and valuations please contact Smith & Williamson:

By Phone: 0141 2221151

By Letter:

SVS Brown Shipley Funds
Smith & Williamson Fund Administration Limited (trading as St Vincent St Fund Administration)
25 Moorgate
London
EC2R 6AY

For investment related queries please use the contact form below.

 

Investment Service

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:

 

Robert Van Kleeck

Senior Fund Manager

Robert Van Kleeck

We strive for enhanced returns, steady income generation and capital preservation through a balance of hands-on credit expertise, deep market knowledge and prudent risk management.

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