By ROBERT HARLEY 03/03/2010
A focused, best ideas fixed income fund, managed by the highly respected Paul Causer and Paul Reed. This fund is designed to be their most flexible investment mandate. Essentially the fund will aim to at least match cash or quality bond returns over a market cycle. The fund is not a pure absolute return product and will embrace market risk if the manager identifies an opportunity to deliver additional returns.
In view of the uncertain economic backdrop we believe this type of mandate should be better placed to capture returns associated with the likely market volatility. The managers also have the benefit of building a portfolio from scratch, at a time when markets are finely balanced. Given the managers track record in delivering returns and allocating risk across their existing mandates we have awarded the fund a 5 star rating.