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: £48.99m at 31 October 2017
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 – 2.34%
Underlying Yield – 1.23%
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 October 2017 

The fund delivered a return of +0.34% in October and performance year to date is +1.69%*.

After the dramatic rise in UK rates in September, gilts were far more stable in October. Markets settled ahead of the anticipated rate hike by the Bank of England in November, which would be the first since 2007 and reverse the Brexit induced cut of last year. As of month end, the market implied probability of a hike was 88%, suggesting few investors are expecting a surprise. This reflects the global backdrop of slowly rising rates, as global growth continues to pick up. Commodity prices are also rising, with the oil price breaching $60 a barrel in October*. Such an environment should allow for central bankers to feel more confident about upwardly adjusting rates.

Credit spreads were also mostly unchanged in October, and bonds were almost immune to the political developments in Spain and Catalonia, with investors using any widening in Spanish corporates as a buying opportunity. The demand for yield from credit products still remains high.

The SVS Brown Shipley Sterling Bond Fund is positioned to reflect our macro view, in particular through focusing on shorter dated bonds than is usual for a sterling corporate mandate. Fund duration is 4.87 years compared to the 8 year duration which is common for sterling benchmarks*. Management still sees value in credit, and therefore the investment focus is on short dated high yielding bonds.

Source: *Bloomberg

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.

Find out more about the SVS Sterling Bond Fund

Do you wish to receive future marketing info?   Yes   No
Submit

Sterling Bond Factsheets Archive