Corporate Bond Fund
Corporate bond funds let investors benefit from companies’ improving credit profiles, without the risk of shares. If the worst happened, and the company defaulted on its debts, shareholders are at the bottom of the list in terms of who gets paid. Bondholders, meanwhile, hold a higher position, meaning they’ll get repaid before shareholders. That’s one of the reasons why corporate bond funds are popular – your client can earn capital growth (albeit at a lower rate) with less risk. And, of course, the regular coupon payments made by corporate bond funds can make a valuable contribution to your client’s income.
Here are some of the key features of our Corporate Bond Fund, and why we think you should invest with us:
The Fund aims to provide a good level of total return (income plus capital) by investing in a diversified portfolio of primarily fixed income securities.
Who is the Fund suitable for?
This Fund is suitable for clients looking for a longer-term investment with less risk than investing directly in the stock market. It is best as part of a wider portfolio. Your client should:
- Be prepared to accept a moderate level of volatility
- Be investing for the longer term (at least five years)
- Accept that they may not get back as much as they invested
How is income paid?
Paid quarterly in March, June, September and December.
Why recommend this Fund?
- Not just the UK – The Santander Corporate Bond Fund invests in bonds issued by an expansive range of European companies.
- Rigorous stock selection – We choose companies using a blend of quantitative and qualitative research. This means we consider both mathematical factors such as profit and loss, as well as our views on less tangible factors, such as the quality of management.
- Prudent risk management - With a firm focus on risk management, the team seeks to unearth bonds that can deliver returns to clients over the medium term.
- An experienced pair of hands – Our team has, on average, 16 years’ experience in managing fixed income assets.
How is the Fund invested?
We will mainly invest in investment-grade (the highest quality) corporate bonds that are priced in sterling. However, the Fund can also invest in other assets, such as cash and government bonds, to achieve its investment objective.
What are the charges?
This Fund has an ongoing charge of 0.47%.
Find out more
If you would like more information on the Corporate Bond Fund, please visit our Product Literature pages, where you will find a Fund Factsheet, Key Features of the Fund and Past Performance data.