Rathbones has launched a strategic bond fund, which can also invest in collectives for fixed income director Bryn Jones.
The Rathbone strategic bond fund, which launches on October 3, will hold both individual fixed income securities and collective vehicles in its portfolio.
Half of the fund will typically be held in sterling-denominated government bonds and investment-grade corporate debt, while the remainder will be allocated to collective investment vehicles, especially those in specialist areas such as high yield and emerging market debt.
Up to 20 per cent of the portfolio can be held in off-benchmark assets, such as qualifying alternative fixed income funds and qualifying structured products, to lower the fund’s risk and volatility.
Jones (pictured), who also manages the £73.8m Rathbone ethical bond fund, says: “Whilst a number of other strategic bond funds have come to the market in recent years, we are differentiated by our ability to invest directly in fixed income securities and in collective vehicles.”
The fund’s investment team will also include David Coombs, the head of multi-asset investments at Rathbones, who will oversee the collectives section of the portfolio, Will McIntosh-Whyte, the asset manager’s investment manager, and credit analyst Noelle Cazalis.
The fund has a minimum investment of £1,000, an initial charge of 4 per cent and an annual management charge of 1.25 per cent.