Julius Baer adds defensive fund to its absolute return bond fund range
Share
The £27m Julius Baer absolute return bond fund defender adopts the firm’s absolute return investment strategy but focuses on a reduced risk profile.
It invests in worldwide bonds with various maturities, credit ratings and currencies and financial derivatives and aims to achieve sustained, positive returns across market cycles, irrespective of rising or falling interest rates and credit and currency markets.
Since its launch last July the fund has returned 3.22 per cent, as at December 31. It has a target return of three-month Euribor 0.75 per cent-1.25 per cent per annum.
The fund managers are Tim Haywood and Daniel Sheard of Augustus Asset Managers Limited, the external sub-advisor.
The portfolio has a smaller exposure to volatile allocations such as currencies and convertible bonds in comparison to peers and its managers attribute its strong performance to investments in government bonds and cash.
Julius Baer absolute return bond fund defender co-lead manager Tim Haywood says: “As the name suggests this fund acts as a ‘defender’ against turbulent market conditions. The economic slowdown has made investors less tolerant to risk; they are looking for clear, transparent products which help navigate the current markets, by taking a diversified range of small risks, rather than just one type of risk."
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
