We have added Premier Miton Corporate Bond Monthly Income to our Recommended list.

Fund Snapshot

An actively managed corporate bond fund where the managers focus upon higher quality bonds issued by stable, investment grade companies.  Within its sector, the fund features in our 'Dynamic' category.

Fund Description – Key Points

• The fund is managed by Lloyd Harris, Head of Fixed Income, and Simon Prior, who both joined Premier Miton in 2020.
• Philosophically, the managers aim to provide a sterling corporate bond fund that delivers incremental value, provides a resilient income stream and reflects the core fundamentals of the asset class.
• They have a deliberate focus upon high-quality bonds with the aim of providing diversification from equities and offering relative safety of income and capital compared to riskier assets.
• They are pro-active investors, looking continuously for opportunities to participate in well-priced new issues, as well as taking profits in individual names as bond prices fluctuate.  This supports their aim of delivering value to their investors in a consistent manner.

Characteristics and Utility

• The fund is pitched as a high-quality offering.  Historically, compared to peers, it has held higher exposures to bonds rated A and above.
• Using a pro-active approach, the managers seek to deliver value incrementally by capturing marginal gains as trading/profit-taking opportunities arise. Therefore, turnover is relatively high.
• The permitted duration range of +/- 2 years (relative to the reference index) means that the portfolio’s interest rate sensitivity does not stray too far from that of the index.
• The fund’s aggregate credit quality means that it is likely to achieve superior relative performance during more challenging periods for credit.  Equally, it is less likely to participate fully when lower-rated issuers are in the vanguard.
• The fund is suited to investors who are looking for an actively managed corporate bond fund where credit quality and diversification from equities are important characteristics.

For more information about this and other funds in the IA £ Corporate Bond sector, please see our IA Sector Overview.