Architas chief investment officer Caspar Rock has added two new close-ended funds to the Multi Asset Active range to gain exposure to alternative areas of fixed income.
Rock has added the £157m TwentyFour Income fund and the $1.3bn Neuberger Berman Global Floating Rate Income fund to his Architas MA Active, Active Reserve, Active Moderate Income, Active Intermediate Income and Active Progressive funds.
He says: “Within fixed income we have not wanted to own gilts, we have been looking to shift our weightings away from gilts and towards other parts of the fixed income spectrum.”
Rock explains the TwentyFour Income fund is a specialist in asset-backed securities such as mortgage-backed securities and covered bonds.
He says: “What you are getting is better security – with loans generally you get better security than you do with a bond.”
The Neuberger Berman Global Floating Rate Income fund invests in floating rate senior secured loans, which Rock likes as they provide “access to potentially attractive income via bank loans, which are less risky than corporate bonds”.
Rock says he does not have any exposure to fixed income in the Architas Active Growth and the Active Dynamic.
Chelsea Financial Services managing director Darius McDermott says: “Gilts are not a great place to be if you are running an income fund as they are attracting hardly any yield at all. It is not surprising Rock does not hold any gilts.”