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iShares Corporate Bond Index Class H - Accumulation (GBP)

Sell:138.30p Buy:146.10p Change: 0.30p (0.22%)
Prices as at 14 May 2021
Change: 0.30p (0.22%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 14 May 2021
Change: 0.30p (0.22%)
Prices as at 14 May 2021
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

This fund focuses on bonds issued by companies that are more financially secure and likely to be able to pay of their debts. We think it's a great choice for broad exposure to this area of the bond market. The team have a good record of tracker fund investing and this one's available at a great price.

Our view on the sector

Funds in this sector invest mainly in 'investment grade bonds'. These are issued by companies that are more likely to be able to repay their debts to bondholders. As such, they tend to offer lower yields than bonds issued by companies that are less likely to be able to pay off their debts. Corporate bonds have generally performed well since the 2008 financial crisis. With interest rates on cash so low, they've appealed to income investors. This has pushed up bond prices, but means their yields have also fallen. Some suggest there is now less value in this area of the market. We think that with interest rates likely to stay lower for longer, a corporate bond fund could be a good addition to a diversified portfolio invested to generate income.

Performance Analysis

This fund aims to track the performance of a broad index of good-quality bonds. Since launch it's tracked this index closely. The fund's charges are low, though this means we expect the fund to return a little less than its index over the long term.

Investment Philosophy

Tracker funds are one of the simplest ways to invest. They aim to match the performance of an index, rather than beat it. They usually do this by investing in every company in the index. This means they don't need analysts to research individual companies, which keeps costs to a minimum. If the fund's costs are low it's likely to track the index more closely.

Process and Portfolio Construction

This fund invests in almost every bond in the iBoxx GBP Non-Gilts Overall Index. This is known as partial replication, which could help the fund track the index closely without the cost of holding every bond in it. Bonds that make up a very small part of the index are sometimes not held in the fund as they can be more difficult or expensive to buy and sell. The fund can also lend some of its investments to others in exchange for a fee. This helps to keep costs lower.

question mark Manager Track Record Based on HL Quantitative Research

  • iShares Corporate Bond Index...
  • IA £ Corporate Bond

Fund Track Record

13/05/16 to 13/05/17 13/05/17 to 13/05/18 13/05/18 to 13/05/19 13/05/19 to 13/05/20 13/05/20 to 13/05/21
Annual return 8.78% 0.41% 3.93% 6.23% 2.37%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

BlackRock was founded in 1988, growing steadily until the mergers with Merrill Lynch Investment Managers and Barclays Global Investors in 2006 and 2009, respectively. These resulted in a significant increase in assets under management and have turned BlackRock into a global company with deep roots in every region across the globe.

The range of BlackRock funds reflects this reach, with actively managed and tracker funds covering multiple asset classes over six continents.

Information about the fund

Fund manager biography

Manager Name: Duncan Fergusson
Manager start date: 30 June 2010
Manager located in: London

Duncan Fergusson, Director and portfolio manager, is a member of BlackRock's Model-Based Fixed Income Portfolio Management Group. Mr. Fergusson's service with the firm dates back to 2003, including his years with Barclays Global Investors (BGI), which merged with BlackRock in 2009. At BGI, he was a member of the Portfolio Solutions team. Prior to this, he worked on the Securities Lending team. Mr. Fergusson earned a BSc degree in business administration from the University of Bath.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account