JOHIM makes first foray into fixed income

11 January 2010 11:45 am | By Stefanie Eschenbacher

The Ucits III-structured vehicles, one global portfolio and one focusing on Britain, are the first fixed income products for the specialist investment house.

According to JOHIM, its sterling bond fund has a highly flexible approach to duration and credit. It is benchmarked against the FTSE UK all stocks gilt index and invests in gilts and investment grade corporate debt. The managers have the ability to move fully into either area. They can invest up to 20 per cent of the portfolio in non-sterling bonds and an additional 20 per cent overseas on a hedged basis. 



The waverton global bond fund invests in government bonds and investment grade bonds. It aims to outperform both the global bond peer group and cash over any three year period.



With a focus on absolute returns, JOHIM says, directional risk is only taken within the portfolio when the team sees a clear investment upside rather than being driven by any benchmark weightings.



JOHIM says the key drivers for returns within this fund are country selection, currency, duration management and credit management.



Keen says in a statement that a call on duration is one of the most influential drivers for these two funds at launch.

The fund managers are staying in short duration as they expect to see the continued recovery of the global economy and the accompanying rise of inflation to normal levels.

According to Keen, the most value is currently in the lower tranches of investment grade. Most credit indices, however, are highly weighted towards financials, autos, utilities and tobaccos. Yet Keen says they invest in bonds based on the fundamentals of the underlying issuing companies rather than their inclusion in indices.

The minimum investment for both funds is £1,500.

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