London-based boutique asset management firm, Charteris, has launched a defensive bond fund while warning of a likely downturn in the fixed income sector.
The HC Charteris Strategic Bond fund is aimed at retail and institutional investors with an investment horizon of at least three years and who wish to protect their capital as well as generate some income.
It will be lead‐managed by Ian Williams, chairman and chief investment officer of Charteris, and the firm’s in‐house investment team.
Williams said: “We strongly believe that bond markets have peaked and are now grotesquely overvalued following a 40‐year bull market that has driven UK gilt yields to around a 300‐year low. As a result, there is a crying need for defensive strategies which the HC Charteris Strategic Bond Fund aims to address.”
Using fundamental and long‐term cycle analysis, the new fund will primarily focus on investing in floating rate notes, ultra‐short duration British government bonds, and up to a maximum of 20% in high‐yielding blue‐chip UK equities.
The new fund takes its total fund portfolio to five.
Minimum investment in the bond fund is £1,000 during the offer period, which closes on 31 October 2017. The fund, structured as an OEIC, has four classes of shares with an initial price of 100 pence each.
Following the launch period, the fund will be priced daily and tradable via stockbrokers and other intermediaries.
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