Bestinvest says
Essentially this is quality portfolio of investment grade bonds, and whilst the fund has achieved credible returns relative to the peer group, in what is very a competitive sector we have higher conviction towards alternative funds.
This is a total return sterling denominated investment grade (quality bonds) corporate bond fund that offers investors the prospect of a reasonable level of income and the opportunity for capital gains. Broadly speaking this is a conservatively run fund, although it does have some unusual attributes in that the fund's remit allows it to invest up to 20% in high yielding bonds as well as currencies and Emerging Market debt.
The investment process of this fund focuses firstly on broader macro themes (Investec's economic view of the world and affect on financial markets) to define the initial universe. The macro evaluation is used to help frame investments in currencies and the fund can access a range of 60. Emerging Market debt is done on a far more stock specific basis. Investec has a specialialist team that focuses on this. The mandate also allows the managers to use derivatives where they find arbitrage opportunities in the fixed income market.