Following the successful launch of S-class sharesto cornerstone investors, Rathbone Unit Management Ltd has introduced the Rathbone High Quality Bond fund to a broader base of investors in the UK.
Managed by Noelle Cazalis, the fund is due to be made available to Continental European investors via a Luxembourg-domiciled Sicav. Cazalis states that the aim of the fund is to provide a ‘cautious option'.
The fund manager said, "As the outlook for rates is uncertain and as we near the back end of the credit cycle, we aim to provide a cautious option within fixed income portfolios.
"We believe investors only have a limited number of options to de-risk, so the fund should add to their tool-kit. By focussing on high quality credit names, the fund should help to limit maximum drawdowns in portfolios when markets are jittery."
The Rathbone High Quality Bond fund S-class shares was launched in 16 November 2018.
Investors should be able to commit to an investment horizon of at least three years and preferably longer.
The fund typically invests in global corporate and G10 government bonds, with at least 80% of the fund invested in securities with a credit rating of A- and above. The remaining 20% may be invested at the manager's discretion in government bonds, non-rated bonds or BBB-rated investment grade bonds.
As per the Investment Association's £ Corporate Bond sector, at least 80% of the portfolio must be invested in sterling denominated bonds or hedged back to sterling. It is envisaged that all non-sterling denominated positions will be hedged back to Sterling.