F&C has renamed its fixed-interest fund as the UK corporate bond fund as part of a number of changes to bolster its presence in the core investment-grade portion of the sector.
Fund manager Ian Robinson can now invest up to 20 per cent of the portfolio outside investment-grade issues when he feels appropriate. He therefore has a similar mandate to some of the top-performing funds in the sector.
The 44.4m fund is in the second quartile of the corporate bond sector, ranked 33rd out of 85 funds over three years, according to Standard & Poor’s.
BestInvest investment manager Hugo Shaw says the fund is not a bad performer but there are better options on the market. He says: “Although performance has been second quartile in the past few years, the fund has not really been actively managed and despite an annual management fee of 1 per cent it has acted as more of a tracker. The fund is almost completely investment-grade so perhaps the wider freedom will do it some good.”