Smith & Williamson Investment Management says its short-dated corporate bond fund is its most popular fund among multi-managers and discretionary fund managers.
The short-dated corporate bond fund, launched in 2009, aims to produce higher returns than cash without taking on excessive risk. It invests in investment-grade bonds with durations of less than six years, making it useful to multi-managers and DFMs as a complement to cash at the lower end of the risk spectrum.
The firm offers an institutional share class on the fund and has recently introduced institutional share classes across its fund range.
Portfolio managers had to buy the retail share classes of most Smith &; Williamson funds, with the exception of the short-dated corporate bonds and enterprise funds. This meant the renewal commission paid on the retail share classes was rebated but the institutional shares pay no renewal commission so the structure is cleaner for multi-managers and DFMs.
The institutional share classes on most of the funds have a 0.75 per cent annual management charge. The fixed-interest and global gold and resources fund are the exceptions, with annual charges of 0.65 per cent and 1 per cent respectively.
Head of marketing and sales Nick Hodgson says: “Our short-dated corporate bond fund has been the most popular fund among multi-managers and wealth managers. It is a specialist in what it does and has performed well since launch. A number of wealth managers are buying it for income.”