6th August 2019
- by Suki Mann
Small is Beautiful: GBP Funds Performance to July 2019
End of July 2019 Fund Performance update…
The IG sterling iBoxx index returned 4.5% in the 3 months to end July, but the larger sterling IG funds have failed to keep up the pace. Scottish Widows‘ £6bn corporate bond tracker fund returned just 1.39%, while the iShares £5.1bn fund came in with 1.9% of performance. Aberdeen (AUM £1.3bn) and L&G (AUM £1.4bn) came in with 2.27% and 2.76%, respectively. Small is more beautiful in the sterling market, it seems. Blackrock’s ASF Core+ returned 3.8% in the same period, for example.
Largest IG £ Funds: Total Returns /α (%)
Performance of the largest IG Sterling corporate bond funds ordered by assets under management.
| # | Fund / ISIN | Size (£bn) | 3mth/ αlpha | 1yr*/ αlpha | 3yr*/ αlpha | 5yr*/ αlpha | Morningstar Rating |
|---|---|---|---|---|---|---|---|
| 1 | Scottish Widows Corporate Bd Trkr W Acc GB00BD7W3V17 | 5.764 | 19.03 -0.78 | 8.62 0.07 | 2.48 -0.51 | 5.39 0.43 | ★★★★ |
| 2 | iShares Corporate Bond Index (UK) L Acc GB00B5MMQ552 | 5.112 | 21.15 1.34 | 9.40 0.86 | 2.82 -0.17 | 5.27 0.31 | ★★★ |
| 3 | Invesco Corporate Bond UK Acc GB0033028779 | 3.949 | 14.09 -5.71 | 5.78 -2.76 | 2.52 -0.47 | 3.34 -1.63 | ★★ |
| 4 | M&G Corporate Bond GBP I Inc GB00B1YBRM66 | 3.569 | 21.14 1.33 | 8.75 0.20 | 3.12 0.13 | 4.83 -0.13 | ★★★ |
| 5 | Fidelity MoneyBuilder Income GB0003863916 | 3.400 | 20.56 0.75 | 8.55 0.01 | 2.19 -0.79 | 4.49 -0.47 | ★★ |
| 6 | Vanguard UK Inv Grd Bd Idx GBP Acc IE00B1S74Q32 | 3.179 | 20.36 0.55 | 8.34 -0.21 | 2.54 -0.44 | 5.04 0.08 | ★★★ |
| 7 | M&G Strategic Corporate Bond GBP A Acc GB0033828137 | 2.707 | 18.41 -1.39 | 6.77 -1.78 | 2.65 -0.34 | 3.61 -1.35 | ★★★ |
| 8 | Aviva Investors Corporate Bd 1 GBP Inc GB0004459359 | 2.693 | 19.81 0.00 | 8.34 -0.20 | 2.18 -0.81 | 4.40 -0.56 | ★★★ |
| 9 | Insight Buy and Maintain Bond B GBP Inc IE00B8FY2845 | 2.464 | 19.07 -0.74 | 6.66 -1.89 | 0.30 -2.68 | 0.00 0.00 | ★ |
| 10 | Royal London Sterling Credit Z Inc GB00B4W1ZT22 | 2.110 | 20.46 0.65 | 9.27 0.73 | 4.11 1.13 | 5.83 0.87 | ★★★★★ |
| 11 | Halifax Corporate Bd B GB0031809097 | 1.803 | 21.54 1.73 | 9.13 0.59 | 3.07 0.08 | 4.42 -0.54 | ★★ |
| 12 | Vanguard UK Short-Term IG Bd Idx GBP Acc IE00B9M1BB17 | 1.623 | 6.20 -13.60 | 3.16 -5.39 | 1.59 -1.40 | 2.07 -2.89 | ★ |
| 13 | Insight Inv UK Corp All Mat Bd S2 GB00B06FWY62 | 1.592 | 19.54 -0.27 | 9.42 0.88 | 2.95 -0.03 | 5.60 0.64 | ★★★ |
| 14 | Royal London Corporate Bond A Inc GB00B3P2K895 | 1.443 | 18.42 -1.39 | 8.17 -0.37 | 3.43 0.44 | 5.02 0.06 | ★★★★ |
| 15 | Threadneedle Stlg SD Corp Bd InsGrs Inc£ GB00BD8GMC64 | 1.438 | 6.70 -13.10 | 3.68 -4.86 | 1.98 -1.01 | 2.33 -2.63 | ★★ |
| 16 | L&G Short Dated £ Corporate Bd Idx C Acc GB00BKGR3F07 | 1.426 | 7.24 -12.57 | 4.07 -4.47 | 2.33 -0.65 | 2.82 -2.14 | ★★ |
| 17 | AI Sterling Corp Bond UK Corp GBP Inc GB00BTF89Z90 | 1.339 | 23.61 3.81 | 10.19 1.65 | 2.24 -0.75 | 0.00 0.00 | ★★ |
| 18 | ASI Corp Bd I Inc GB00BWK26H88 | 1.335 | 25.58 5.77 | 9.48 0.93 | 2.89 -0.09 | 5.10 0.14 | ★★★ |
| 19 | Rathbone Ethical Bond R Acc GB0030957137 | 1.321 | 16.60 -3.21 | 7.51 -1.03 | 4.57 1.58 | 5.06 0.10 | ★★★★★ |
| 20 | L&G Fixed Interest I Acc GB00B0CNHD88 | 1.312 | 24.09 4.28 | 10.29 1.75 | 3.18 0.19 | 5.59 0.62 | ★★★★ |
Top Performing IG £ Funds: Total Returns /α (%)
Top-performing IG Sterling corporate bond funds ranked by rolling 1-year performance.
| Rank | Fund / ISIN | Size (£mm) | 3mth/ αlpha | 1yr*/ αlpha | 3yr*/ αlpha | 5yr*/ αlpha | Morningstar Rating |
|---|---|---|---|---|---|---|---|
| 1 | Fidelity Duration 20 Feeder Acc GBP GB00BVTVCQ05 | 52 | 67.13 47.32 | 24.65 16.11 | 4.28 1.29 | 0.00 0.00 | ★ |
| 2 | Fidelity Duration 16 Feeder Acc GBP GB00BVTVCP97 | 26 | 46.70 26.89 | 19.40 10.86 | 4.02 1.04 | 0.00 0.00 | ★★★ |
| 3 | Schroder Instl Long Dated Corp Bd I GB0009569327 | 347 | 48.92 29.11 | 19.37 10.82 | 4.95 1.97 | 9.39 4.43 | ★★★★★ |
| 4 | BlackRock ASF Ascent UK Long Corp Bd Fl£ IE0031465705 | 604 | 45.92 26.11 | 17.48 8.94 | 4.02 1.03 | 8.89 3.93 | ★★★★★ |
| 5 | Janus Henderson Instl Lg Datd Crdt I Inc GB0007475675 | 264 | 46.06 26.25 | 17.33 8.78 | 3.57 0.58 | 8.07 3.11 | ★★★★ |
| 6 | AI Non-Gilt Bd Ovr 15 Yrs IdxInsrdPenAcc GB00BYSL7Y58 | 346 | 50.61 30.80 | 17.21 8.66 | 0.00 0.00 | 0.00 0.00 | |
| 7 | BMO Long Dated Sterling Corp Bd 3 Acc GB00B8460N21 | 45 | 43.25 23.44 | 16.37 7.83 | 3.99 1.00 | 8.38 3.42 | ★★★★★ |
| 8 | Fidelity Instl Lng Dtd Stlg Corp Bd Inc GB0031400335 | 642 | 40.14 20.33 | 15.79 7.25 | 4.54 1.55 | 7.96 2.99 | ★★★★★ |
| 9 | BIBF Over 10 Year Corporate Bd B GBP Inc GB0099289679 | 0 | 39.81 20.00 | 15.68 7.13 | 3.94 0.95 | 6.94 1.98 | ★★★ |
| 10 | Insight Inv UK Corp Lng Mat Bd S2 GB00B06FXK91 | 457 | 37.01 17.20 | 15.64 7.09 | 4.05 1.06 | 7.74 2.78 | ★★★★★ |
| 11 | JPM Sterling Bond A (dist) GBP LU0053692744 | 69 | 39.59 19.78 | 15.61 7.06 | 3.14 0.15 | 7.50 2.54 | ★★★★ |
| 12 | PIMCO GIS UK L/T Corp Bd Instl GBP Acc IE00B0CNPY59 | 434 | 38.92 19.11 | 15.04 6.49 | 4.38 1.39 | 8.27 3.31 | ★★★★★ |
| 13 | BNY Mellon Long Corp Bd Exempt 1 Acc GB00B01X0Y17 | 27 | 33.91 14.11 | 13.66 5.11 | 3.62 0.63 | 7.26 2.30 | ★★★★ |
| 14 | Threadneedle Stlg MLD Corp Bd InsGrsInc£ GB00BD8GM715 | 320 | 30.51 10.71 | 12.66 4.12 | 3.57 0.58 | 6.67 1.71 | ★★★★★ |
| 15 | Fidelity Duration 10 Feeder Acc GBP GB00BVTVCN73 | 107 | 23.27 3.47 | 11.16 2.61 | 3.17 0.18 | 0.00 0.00 | ★★★ |
| 16 | Schroder All Maturities Corp Bd I Acc GB0009569541 | 1020 | 24.66 4.86 | 10.78 2.24 | 3.71 0.72 | 6.13 1.17 | ★★★★ |
| 17 | UBS Corporate Bond UK Plus K Acc Gross GB00B1QK7Q59 | 587 | 23.12 3.31 | 10.48 1.93 | 3.51 0.52 | 5.52 0.55 | ★★★★ |
| 18 | Schroder Sterling Corporate Bond A Inc GB0031093247 | 330 | 22.46 2.66 | 10.40 1.85 | 4.03 1.04 | 5.68 0.72 | ★★★★ |
| 19 | SWC (CH) Index BF Corp. W ex €/$ FA CHF CH0315621190 | 78 | 25.66 5.85 | 10.40 1.85 | 3.44 0.45 | 0.00 0.00 | ★★★★ |
| 20 | GS Sterling Credit I Inc GBP LU0386576077 | 22.56 2.75 | 10.34 1.80 | 2.88 -0.10 | 5.05 0.09 | ★★★ |
All Fund performance tables: Investment Grade EUR | Investment Grade GBP | High Yield EUR | High Yield GBP
Table information: European domiciled funds in Morningstar Category GBP Corporate Bond, Oldest share class, All figures GBP sterling (£), Total returns annualised, as at last month-end. Alpha is the measure of an investment’s return in excess of the Morningstar Category average.
Fund sizes are as reported by the management groups and the latest available to Morningstar. The Morningstar Rating is calculated based on a fund’s total returns, adjusted for risk and sales charges, relative to other funds in its Morningstar Category, based on a weighted average of a fund’s 3-, 5-, and ten-year ratings, depending on the length of its record.
Data source: © 2019 Morningstar, Inc. All rights reserved.
The information contained herein:
(1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Important note regarding third party indices: Morningstar does not own any third party index data (S&P, FTSE, MSCI), so cannot authorise its use. The journalists should contact each vendor directly to get authorisation for the data they require.
