View more on these topics

Hawksmoor switches from bond fund

Hawksmoor Investment Management’s Vanbrugh fund has sold the Henderson strategic bond fund in favour of another Henderson fund that provides exposure to secured loans.

The strategic bond fund, managed by John Pattullo, had featured in Vanbrugh since the fund of funds was launched in February 2009.

But Hawksmoor’s multi-manager team felt it no longer provided exposure to where they wanted to be in bond markets and replaced it with the closed-ended diversified income fund, also managed by Pattullo.

Through diversified income, Hawksmoor has exposure to secured loans with coupons, or returns, that are Libor-linked, unlike corporate bonds where coupons are fixed. Libor-linked coupons are attractive because a rise in interest rates means a rise in coupons.

Interest rate rises are negative for corp- orate bonds because fixed coupons start to look unattractive relative to the level of risk investors are taking to achieve that return. Investors start to sell out of corporate bonds, they fall in value as prices go down and then yields go up to make them more attractive.

Fund manager Daniel Lockyer says: “Under the IMA cautious managed sector rules, we have to have 30 per cent in fixed income and cash, but we do not really want fixed income in our bond exposure. We are trying to be a bit clever about how we can meet the IMA guidelines without having to put money in an unattractive asset class.”

Recommended

Nest hunting for ethical monitor on fund factors

The National Employment Savings Trust has launched a search for a responsible ownership provider to ensure the scheme’s fund managers consider environmental, social and governance factors when they invest members’ money. Nest will use external service providers to help deliver its responsible ownership policy. In the early stages of the scheme, the fund managers will […]

Investment and retail bank link needs radical surgery

Business Secretary Vince Cable says banks still face “fundamental surgery” in terms of the link between investment and retail banking and the lack of competition in the sector. In an interview on The Andrew Marr Show on BBC 1 on Sunday, Cable said the Independent Commission on Banking, chaired by Sir John Vickers, will bring […]

2

Reeves slams Webb over dole comments

Labour has slammed pensions minister Steve Webb for saying women affected by the accelerated increase of the state pension age could apply for jobseeker’s allowance to avoid destitution. Shadow pensions minister Rachel Reeves says it is an insult to tell women after a lifetime of work they should claim unemployment benefits. She says: “It is […]

4

IHT set to be axed on pension funds

Treasury documents have revealed plans to abolish the inheritance tax levied on the pension pots of individuals in ill health who delay taking benefits. Under current legislation, inheritance tax can be levied on pension assets if a person dies before drawing on their fund. This charge arises only if the individual is aware that they […]

Spring has sprung

Well, it’s been lovely to see a little bit of sunshine, even if it was only a brief appearance. I live in Scotland so, believe me, it was very brief.  Of course, with even the tiniest hint of spring, thoughts turn to the inevitable clearout that must take place.  And that got me to thinking […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com