Bond fund to replace VLS

InvesterJones

aroominyork said:

Bobziz said:

@masonic I'm looking to do likewise. Any view on a decent corporate fund ? I've been looking at the below which seems decent. Thanks.

Royal London Shrt Dur Crdt M Acc GB00BJ4KW792

It's a good fund which I've held in the past and was going to buy again this week, but I've changed my mind to Artemis Short-Duration Strategic Bond. Artemis has the flexibility to hold govt as well as corporate bonds and has more ex-UK than Royal London. That said, their fees and past performance are similar. 

Maybe I'm looking at the wrong thing, but to me the fees for the artemis fund (0.59 OCF + 0.15 transaction) seem roughly twice that of the royal london (0.35 + 0), but as you say, they're quite different funds in terms of global flexible vs UK corp.

masonic

InvesterJones said:

aroominyork said:

Bobziz said:

@masonic I'm looking to do likewise. Any view on a decent corporate fund ? I've been looking at the below which seems decent. Thanks.

Royal London Shrt Dur Crdt M Acc GB00BJ4KW792

It's a good fund which I've held in the past and was going to buy again this week, but I've changed my mind to Artemis Short-Duration Strategic Bond. Artemis has the flexibility to hold govt as well as corporate bonds and has more ex-UK than Royal London. That said, their fees and past performance are similar. 

Maybe I'm looking at the wrong thing, but to me the fees for the artemis fund (0.59 OCF + 0.15 transaction) seem roughly twice that of the royal london (0.35 + 0), but as you say, they're quite different funds in terms of global flexible vs UK corp.

I'm seeing 0.39%: https://www.trustnet.com/factsheets/O/qqhx/artemis-short-duration-strategic-bond

aroominyork

InvesterJones said:

aroominyork said:

Bobziz said:

@masonic I'm looking to do likewise. Any view on a decent corporate fund ? I've been looking at the below which seems decent. Thanks.

Royal London Shrt Dur Crdt M Acc GB00BJ4KW792

It's a good fund which I've held in the past and was going to buy again this week, but I've changed my mind to Artemis Short-Duration Strategic Bond. Artemis has the flexibility to hold govt as well as corporate bonds and has more ex-UK than Royal London. That said, their fees and past performance are similar. 

Maybe I'm looking at the wrong thing, but to me the fees for the artemis fund (0.59 OCF + 0.15 transaction) seem roughly twice that of the royal london (0.35 + 0), but as you say, they're quite different funds in terms of global flexible vs UK corp.

Definitely 0.39%. Maybe you are looking at Artemis Strategic Bond, not the short duration fund - that one is 0.59%.

Bobziz

aroominyork said:

Bobziz said:

@masonic I'm looking to do likewise. Any view on a decent corporate fund ? I've been looking at the below which seems decent. Thanks.

Royal London Shrt Dur Crdt M Acc GB00BJ4KW792

It's a good fund which I've held in the past and was going to buy again this week, but I've changed my mind to Artemis Short-Duration Strategic Bond. Artemis has the flexibility to hold govt as well as corporate bonds and has more ex-UK than Royal London. That said, their fees and past performance are similar. 

Good find. I like the gov holdings and the lack of derivatives. 

aroominyork

Bobziz said:

aroominyork said:

Bobziz said:

@masonic I'm looking to do likewise. Any view on a decent corporate fund ? I've been looking at the below which seems decent. Thanks.

Royal London Shrt Dur Crdt M Acc GB00BJ4KW792

It's a good fund which I've held in the past and was going to buy again this week, but I've changed my mind to Artemis Short-Duration Strategic Bond. Artemis has the flexibility to hold govt as well as corporate bonds and has more ex-UK than Royal London. That said, their fees and past performance are similar. 

Good find. I like the gov holdings and the lack of derivatives. Less junk too.

There is plenty of junk in there. There are three co-managers - one focusing on investment grade, one on high grade, one on govt.

Beddie

I'd personally go for an active bond fund, as they have tended to justify their fees in my experience.

Another example to add to the ones above - Royal London Global Bond Opportunities

https://www.trustnet.com/factsheets/O/E29P/royal-london-global-bond-opportunities-z-inc

aroominyork

Beddie said:

I'd personally go for an active bond fund, as they have tended to justify their fees in my experience.

I agree with that for corporate bonds. If you run a Trustnet performance table for Sterling corporate bonds (search on three years to exclude 2021/22 interest rate changes), the index funds are low down the list. I expect quite a few people buy index funds assuming, like with equities, they are the most sensible route. 

InvesterJones

aroominyork said:

InvesterJones said:

aroominyork said:

Bobziz said:

@masonic I'm looking to do likewise. Any view on a decent corporate fund ? I've been looking at the below which seems decent. Thanks.

Royal London Shrt Dur Crdt M Acc GB00BJ4KW792

It's a good fund which I've held in the past and was going to buy again this week, but I've changed my mind to Artemis Short-Duration Strategic Bond. Artemis has the flexibility to hold govt as well as corporate bonds and has more ex-UK than Royal London. That said, their fees and past performance are similar. 

Maybe I'm looking at the wrong thing, but to me the fees for the artemis fund (0.59 OCF + 0.15 transaction) seem roughly twice that of the royal london (0.35 + 0), but as you say, they're quite different funds in terms of global flexible vs UK corp.

Definitely 0.39%. Maybe you are looking at Artemis Strategic Bond, not the short duration fund - that one is 0.59%.

Quite correct, sorry!