Morgan Grenfell is aiming to bring its institutional investment experience to the retail market, with the introduction of its World Bonds Fund. A sub fund of its Dublin based Global Select Funds open-ended investment company. World Bonds will be denominated in US dollars and marketed globally.
The investment objective is to achieve a total return of competitive growth and income, through investment in a diversified portfolio of governmental and non governmental bonds from some of the world's major economies.
The fund will be managed in London using a collective team approach with input from managers around the world. It will be benchmarked to outperform the Salomon World Government Bond Index by 2 per cent a year using bonds with a minimum Standard & Poor's investment rating of BBB.
Morgan Grenfell will use a rigorous investment selection criteria based on risk and return analysis. This involves currency management in which it will initially hedge against the US dollar in favour of the Deutschmark and duration management where Morgan Grenfell will assess whether to go for long or short dated bonds on a market by market basis. The security selection will also allow it to take advantage of undervalued bonds.
