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THREADNEEDLE HIGH YIELD BOND C1

THREADNEEDLE HIGH YIELD BOND C1 - Overview

Overview of THREADNEEDLE HIGH YIELD BOND C1 Buy in ISA Buy in Investment Account

The fund aims to achieve a higher level of income by investing principally in higher risk corporate bonds issued by European (including UK) companies. These will generally be denominated in sterling and euros, though other currencies may be included. The principal driver of fund construction is company specific credit analysis, followed by a top-down industry overlay. The portfolio is similar to that of Threadneedle's European High Yield fund, but all non sterling exposure is hedged back to sterling.
Bonds issued by major governments and companies will be more stable than those issued by emerging markets or smaller corporate issuers; in the event of an issuer experiencing financial difficulty, there may be a risk to some or all of the capital invested. Any historical or current yields quoted should not be considered reliable indicators of future performance.

  • Standard Initial Charge 3.75%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector £ High Yield
Structure OEIC
Launched October, 1999
Size £753m
Yield 4.4%
Charging basis Capital
Dividends paid 4th day of each month

Charges

Standard initial charge 3.75%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.25%
Ongoing charges figure 1.42%

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

No information available.

Portfolio

Allocation Proportion(%)
Equity 0
High yield bonds 93
Quality bonds 4
Property 0
Commodities 0
Hedge 0
Fund cash 3
Allocation Proportion(%)
UK 0
Europe 0
North America 0
Japan 0
Pacific 0
Emerging Markets 0
Allocation Proportion(%)
Large Caps 0
Mid Caps 0
Small Caps 0
View all performance data for this fund

Investment process

A plain vanilla high yield corporate bond fund, investing mainly in euro and sterling denominated issues, although other currencies can be included. Quasi equity securities are not considered. The essential driver of fund performance is bottom up credit analysis, which includes covenant structure, company valuation, financial analysis and business analysis. Credit analysis is subsequently combined with a top-down sector/industry overlay to finalise the company specific credit opinion. This work enables the team to assess relative value and is combined with portfolio risk management to determine the final stock selection. The reference benchmark is the Merrill Lynch European High Yield ex Subordinated Financials, 3% constrained, hedged into sterling.

Live feed

Bid price(inc) 41.89p -2.93p
Accum units 41.89p
Fund commentary 08/10/12
Fund data updated on 21/05/19

Asset allocation

Allocation Proportion(%)
Equity 0
High yield bonds 93
Quality bonds 4
Property 0
Commodities 0
Hedge 0
Fund cash 3

Equity Geographic

Allocation Proportion(%)
UK 0
Europe 0
North America 0
Japan 0
Pacific 0
Emerging Markets 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 0
Mid Caps 0
Small Caps 0

Top 10 holdings

As at: 31/01/2019
2.3% Telecom Italia Spa(New)
2.1% Telefonica Europe Bv
1.6% Teva Pharmaceutical Finance Netherlands Ii B.v
1.5% Casino Guichard-Perrachon
1.4% Iho Verwaltungs Gmbh
1.4% Softbank Group Corp
1.3% Adler Real Estate Ag
1.2% Schaeffler Fin
1.2% Altice Sa
1.2% Tesco
Source: Trustnet

Sector breakdown

Others 14%
Telecommunications 12%
Media 10%
Basic Industries 7%
Services 7%
Health Care 7%
Retail 6%
Cash & Cash Equivalents 6%
Capital Goods 6%
Financial Services 6%

Portfolio details

120-150 bonds from 75-100 issuers.

Constraints

Max 6% in one issuer. Each ratings bucket (BB, B etc) must be within +/-10% of benchmark. Duration +/-25% of benchmark. CCC rated paper is unlikely to exceed 10% and is more commonly around 5% of the portfolio. Max 10% investment grade debt.
The portfolio usually has very little commonality with the Index and so performance can be expected to differ markedly on occasions.

Average monthly relative returns Bestinvest MRI
14/15 15/16 16/17 17/18 18/19   3 years 5 years Career 3 years 5 years Career
0.11% 0.11% -0.30% 0.15% -0.03%   -0.06% 0.01% 0.01% 50.00% 76.10% 83.90%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Barrie Whitman

Manager. A 1982 Economics & Accounting graduate of Hull University, Whitman qualified as a chartered accountant in 1986. He began his investment career when he joined the United Bank of Kuwait in 1987 as a credit analyst, becoming a high yield manager in 1990 and head of high yield in 1996. He moved to Standard Bank in 1997 to head their European high yield operation before joining Threadneedle in 1999, where he established and heads up their high yield team.

Track record

Barrie Whitman has 19.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.01%. During the worst period of relative performance (from January 2002 - March 2010) there was a decline of 21% relative to the index. The worst absolute loss has been 31%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 84%.

Periods of worst performance
Absolute -31% (May 2007 - December 2008)
Relative -21% (January 2002 - March 2010)

Other funds managed

Sector record since November 1999 (20 yrs)




About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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