Bestinvest says
This is a core UK quality bond fund run by one of the most respected fund managers in the peer group, with a proven track record across market cycles. The fund is managed with a view to delivering outperformance relative to the sector, consequently its performance is unlikely to deviate substantially from the broader asset class. Historically the manager has been one of the more conservative investors in his peer group, but has still achieved strong risk return credentials.
The fund is benchmarked for performance purposes against the peer group, with the aim of providing superior risk adjusted returns. The investment process is split approximately 50/50 between quantitative driven models and traditional fundamental analysis. The manager seeks to add value through asset allocation (gilt or non-gilt), sector and quality allocation (industry and credit rating), yield curve strategy and individual stock selection. The portfolio is structured to provide exposure to diversified sources of alpha to ensure that no particular strategy dominates the risk profile and active trades have as little correlation as possible with each other. Relative duration positions are usually +/-1 year measured against the Merrill Lynch Euro-Sterling index and have historically assumed a lesser role.