Chase Fleming Asset Management, formed in August 2000 by the takeover of Robert Flemings holdings by Chase Manhattan, has introduced the US dollar bond fund.
A Luxemburg-domiciled SICAV, the fund is aimed at investors who want to get the most out of returns from the US economy in the form of income.
It will invest in a portfolio of products which will include US corporate bonds, securities and US government debt and treasury bills (T-bills) and will benchmark the Lehman aggregate index. The company feels that recent interest rate rises in the US have slowed economic growth and reduced the possibility of a crash in the near future.
The American economy has seen a great deal of growth over the past eight years and although there are still no signs of a downturn, there are fears that it might happen. With the result of the US presidential election still looking uncertain, this will add to the uncertainty surrounding the US as an investment option. However, US government securities and T-bills have a great deal of security and this will ensure a low to medium degree of risk.
According to Standard & Poors the Chase Manhattan vista US dollar fund is ranked 75 out of 146 funds, based on £1,000 invested on a bid to bid basis with gross income reinvested over three years to September 18, 2000.