IA Sterling Corporate Bond
The short-dated option :
Royal London Investment Grade Short Dated Credit For risk-averse investors , Kosava recommends Paola Binns ’ Royal London Investment Grade Short Dated Credit fund , which aims to achieve a total return over the medium term by investing at least 80 % of its assets in investment grade bonds . Of these , at least 70 % will reach maturity within five years . The fund has made just 5.2 % since launch in December 2015 , which is less than the 8.2 % made by the IA Sterling Corporate Bond sector . However , it has been much less volatile over this time – its maximum drawdown is 13.4 %, compared with 24.9 % from its sector . It is yielding 3 %.
An investor favourite :
Artemis Corporate Bond Artemis Corporate Bond was the sixth best-selling fund on the AJ Bell Investcentre platform in 2022 , even though it was only launched in October 2019 . Its popularity can be attributed to Snowden , who the analysts at Square Mile refer to as one of the most experienced managers in the sector , with a career spanning more than 20 years . “ We like the nimble , active approach employed by Snowden and his team , where they aim to deliver alpha without any particular style bias ,” they say . The fund is down 3.5 % since launch , compared with losses of 10.9 % from its sector . It is yielding 4.5 %.
The high yielder :
Liontrust Sustainable Future Monthly Income Bond The Liontrust Sustainable Future Monthly Income Bond fund pays out the highest yield in its sector , at 5.8 %. The analysts at Square Mile say that while this is a corporate bond fund with a conscience , “ the focus on sustainability is not at the expense of sound investment principles ”. “ The team are all skilled credit analysts and bonds will only be included in the portfolio if they stack up on fundamental grounds as well as from a valuation point of view ,” they add . The fund has made 25.9 % over the past decade , compared with gains of 20 % from its sector .
Issue 91 - January 2023 / 59 /