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: £57.58m at 30 June 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 – 2.30%
Underlying Yield – 1.26%
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 30 June 2017 

The UK electorate once again put two fingers up to the establishment as the Tories were returned into government without a majority and must now rely on the support of the DUP, the largest party (by seats) in Northern Ireland. This creates a great deal of uncertainty as history shows us minority governments very rarely stay in power for long. It also weakens May’s mandate and we are likely to see a government punctuated by U-turns and infighting, indeed the current backlash regarding the public pay cap and the deal struck with the DUP is a sign of things to come. Indeed after the election results, the markets moved in a way we expected, sterling weakened and gilt yields moved lower. However credit spreads continued to move tighter, perhaps due to the international nature of the sterling corporate market. Towards the end of the month the bond markets did an about-turn, ten-year gilt yields increased by 0.33% to 1.26%, up from 0.93% on the 14th June*. Sterling rallied by 3% over the same time period. These moves can be attributed to a change in tact from the Bank of England – following a surprise 5-3 vote to keep interest rates at 0.25% (the surprise being three MPC members voted for a rise) and comments made by several members in the weeks following the meeting (Carney, Saunders, Haldane and McCafferty) indicating that a rate increase is now on the table. The fund remains short duration and should perform relatively well if expectations of higher rates continue to grow. Source: *Bloomberg

Matthew Brennan, Fund Manager

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:

 

Matthew Brennan

Head of Fixed Income and Senior Fund Manager

Matthew Brennan

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.

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