Nedgroup Investments has launched the Global Strategic Bond Fund combining “a liquid and unlevered core global bond portfolio with a value-oriented approach to interest rate and credit risk”.
The fund, classified as an Article 8 fund under the EU’s Sustainable Finance Disclosure Regulation, will be co-managed by Alex Ralph and David Roberts, who shared they “will avoid lower-quality bonds which are illiquid”.
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The strategy of the fund will be to outperform the Bloomberg Global Aggregate Total Return Index (US$ hedged) over a rolling three-year period, shared the asset manager.
Ralph commented: “The current market offers the perfect opportunity for bond investors to go back to the core, whereby bonds now constitute the value part of a portfolio. Many leading bond funds have chased growth, but we will restrict equity-like assets such as high yield, emerging market and subordinated debt as investors will need to broaden their risk approach in this new regime.”
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Roberts added: “Bond markets can be inefficient and often deviate away from their fair value. Our value-driven philosophy and nimble portfolio management means that investors will benefit from a combination of long-term capital growth and income.”
The fund has a duration of 3-8 years and its base currency is US$, but hedged share classes are available in GBP and EUR.
