Rathbones will launch a fixed income product by the end of the year.
It will use strategic asset allocation to invest across investment grade and highyield bonds.
Chief executive Mike Webb says a 20-year bull market has come to an end so the product will invest broadly across the fixed income space rather than specialising in any particular area such as a strategic bondtype product.
Webb says: “We will not launch an awful lot more after this product.”
Rathbones’ existing fixedincome product, the £66.8m ethical bond, is heavily weigh-ted towards investment grade bonds. It sits in the sterling corporate bond sector and has returned 26.1 per cent over a three-year basis compared with an IMA sector average of 20 per cent.
Bestinvest senior adviser Adrian Lowcock says: “There is still a high demand for the fixed-income market and strategic bonds have been topping the IMA sectors. We will see demand in the global and strategic bond space as, because of market uncertainty, there is demand for flexibility to go anywhere.
“Rathbones is not well known for fixed-income products so perhaps the firm is moving to plug the gaps in its range.”