Bestinvest says
A more core quality bond proposition. Value is added through marginal positions relative to the reference benchmark, consequently the fund performance is not expected to deviate materially from the peer group.
The fund adopts a sector and security diversified approach within investment grade corporate bonds, with the aim of outperforming the peer group and the reference benchmark on a rolling 3 year basis. Generally the fund will not take aggressive duration, credit quality and quasi equity positions. The fund‘s investment approach marries top-down asset and sector allocation views with bottom up security selection. The portfolio manager's primary responsibilities include managing sector and credit quality exposure. Asset allocation between gilts, corporate bonds and cash is guided by team strategy meetings. Duration and yield curve positions are led by the sovereign debt team. Credit analysis is carried out by career analysts - approximately 95% of the portfolio credits are analyst recommendations. Upto 50% of the NAV maybe invested in non sterling securities hedged to £.