View more on these topics

Glendevon King enters retail market with bond fund

Fixed income specialist Glendevon King Asset Management has entered the UK retail market with its global bond fund.

Until now, the company has created and managed bespoke investment portfolios for institutions, private banks, family offices and high-net-worth individuals.

The fund will invest globally in government bonds and corporate bonds, particularly those issued by companies in the financial sector including banks and insurers.

Fund managers Nicola Marinelli and Peter Baum are experienced investors in this sector of the fixed income market. Their approach focuses on capital preservation while aiming to provide income and growth for investors. They can also hold up to 20 per cent in cash.

Marinelli joined Glendevon King in 2009.from Banca Monte dei Paschi, in London. He has also worked for RAS Asset Management, now Allianz Global Investors, and Credit Suisse Private Banking.

Baum joined Glendevon King in March 2006 and has 23 years’ investment experience at private bank C Hoare & Co, RBS, Philadelphia National Bank and Manufacturers Hanover Trust .

When managing this fund, Baum and Marinelli will aim to outperform the IMA Global Bond sector average and expect the fund to yield around 5 per cent at launch. However, the yield is not guaranteed and will vary over time.

IFA Hargreaves Lansdown notes that Marinelli and Baum are traditionally conservative investors, who typically invest in higher quality investment grade bonds and government bonds. They also prefer more liquid bonds that can be easily traded.

Research conducted recently among IFAs at the ABC of Bonds Roadshow held by AXA Investment Managers, Baring Asset Management and Cazenove Capital showed that around 65 per cent of the IFAs surveyed will be promoting strategic bond funds, which can invest anywhere in the fixed income market. Around 85 per cent said their clients expect a level of income of between 3 and 5 per cent from their fixed income portfolios.

This suggests Glendevon King will be ticking all the right boxes, but it may need to build a track record before attracting money from some IFAs.

Recommended

Apple: a stellar technology story

By Ali Unwin, head of technology sector research

Apple recently announced the highest-ever recorded quarterly net profit ($18bn), with the sale of 74.4 million iPhones helping the company deliver $74.6bn of revenue for the quarter ending December 2014. These sales were largely driven by strong demand for the new iPhone 6 and iPhone 6 Plus. Highlights included Chinese iPhone sales doubling year-on-year and unit growth of 44% in the US — supposedly a well-penetrated market. Apple ended the quarter with $178bn in cash on its balance sheet, having generated a staggering $30bn in free cash flow during the quarter.

At Neptune, we have been long-term believers in the Apple story, and continue to hold the stock in a number of our portfolios based on the company’s long-term growth prospects. This is predicated on our belief that Apple has proved thus far that it can — unusually for a consumer electronics company — maintain high margins for a sustained period of time, even as adoption of new technology slows down and competitors produce similar-specification products.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment