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 28 February 2018
Ongoing Fund Charge: A Acc and A Inc Share Class 1.11%
Payment dates – Last day of February, 31 May, 31 August, 30 November
Latest fund prices
Distribution Yield – 4.59%
Underlying Yield – 2.35%
Latest fund prices

Ongoing Fund Charge figure is annualised based on the expenses incurred during the period 01/01/17 to 30/06/17. 

SVS Brown Shipley Sterling Bond Fund Commentary 28 February 2018

The widely publicised sell-off in global equity markets in February was mirrored by weakness in the credit markets. Sterling credit spreads widened by 15 basis points** on average over the course of the month, bringing about an average fall of 1.24% for the sector*.

Unlike in many historical bouts of market risk-off sentiment, bond yields did not fall, but rather rose strongly as equities crashed. As stock markets recovered, yields finally began to fall, and the yield on the 10 year gilt closed the month 6 basis points lower**. This negative correlation between equity prices and conventional bond yields defied classical market thinking. Many commentators now point to the rise in bond yields in January as the catalyst for the equity sell-off, citing worries of rising global inflation.

The SVS Brown Shipley Sterling Bond fund fell by 1.37% in this environment*. The fund's focus on credit risk rather than interest rate risk was a detractor from performance, but the fund is now well positioned for a recovery in credit spreads. Net inflows in February helped the fund size to move back above £45 million.

*Source: Lipper, ** Bloomberg.

The 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.

Find out more about the SVS Sterling Bond Fund

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