Insight Investment has launched a global corporate bond fund for Adam Mossakowski, which will employ what it calls a ‘buy and maintain’ strategy.
The Insight Buy and Maintain Bond Fund aims to offer investors the benefits of credit diversification, but limit the downside effects of benchmark tracking strategies.
Insight says the fund will only buy bonds that the manager believes to have sound fundamental investment prospects. Sector, industry and issuer concentration will be limited. The fund will avoid “unsuitable instrument types”, such as Tier one bank debt, altogether.
While the “buy” element reflects the aim of finding credit exposure that offers the best long-term investment fundamentals, the “maintain” element is to seek to avoid loss from default or deterioration in credit quality.
At the same time, this approach will allow Mossakowsk using coupon flow and modest secondary turnover to continually refresh the portfolio and ensure it reflects up-to-date credit views.
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