Low Risk with income – Aegon Sterling Corporate Bond Fund
The investment objective of the Aegon Sterling Corporate Bond Fund is to provide maximum income and growth by investing mainly in sterling denominated bonds.
A bond is a loan to a government, a local authority, or to a company, which runs for a set length of time known as the ‘term’ of the bond. Confusingly, bonds have several names and can also be known as fixed interest securities, debt securities, or loan stock. Bonds offered by government are also known as gilts, and those offered by companies are also known as corporate bonds. Corporate bonds in particular can increase, or decrease, in value depending on the fortunes of the company. Bonds are generally regarded as being a lower risk investment than stocks and shares.
The Aegon Sterling Corporate Bond Fund is a pooled investment where the money of many individual investors is pooled and invested into bonds by the managers of the investment fund.
Investing in the Aegon Sterling Corporate Bond Fund
The initial charge in the Aegon Sterling Corporate Bond Fund is 4.5% and the annual management charge is 1%.
The Aegon Sterling Corporate Bond Fund was launched in 1995 and currently has assets under management totalling £395m. An Aegon Sterling Corporate Bond Fund investment is available through an Individual Savings Account / ISA and also by ISA transfer.
Who manages the Aegon Sterling Corporate Bond Fund?
The managers of the Aegon Sterling Corporate Bond Fund are David Roberts and Iain Buckle.
David has 21 years in the investment fund industry, and joined Aegon from Britannic Asset Management in 2004. He has a degree in economics and an MSc in investment analysis.
Iain joined AEGON Asset Management in 2000 and was previously part of the fixed income investment fund team at Baillie Gifford. He has an MA in economics from Heriot-Watt University. He has a total of 12 years’ experience in the investment fund sector.
Where does the Aegon Sterling Corporate Bond Fund invest?
At the end of April 2010, the top ten holdings in the Aegon Sterling Corporate Bond Fund were bonds issued by the Australia & New Zealand Bank Group, UK Treasury gilts, Mitchells & Buttler, General Electric, Imperial Tobacco, Nationwide, Tullett Prebon, Mellon Capital, RSA Insurance, and Provident.
The main types of bonds where the fund was invested were corporate bonds 0-5 years (11.7%), corporate bonds 5-15 years (51.9%) and corporates 15+ years (16.4%).
Would you like further information on the Aegon Sterling Corporate Bond Fund or one of our Principle First Investment Portfolios? Why not make an online investments enquiry or phone freephone 0800 678 5929 now.
