Investment Grade
Our Investment grade funds aim to deliver consistent risk-adjusted returns by limiting their investment universe predominantly to securities deemed to be higher quality and at a lower risk of default.
Investment Grade Quarterly Update – July 2025
TwentyFour Asset Management’s Gordon Shannon reflects on a volatile but resilient second quarter of 2025 for the Investment Grade team, shaped by shifting tariff policies and evolving central bank actions.
Key takeaways
- Following President Trump’s tariff announcements, risk assets sold off sharply with equities down significantly and credit spreads widening. However, the 90-day pause in tariffs helped to stabilise markets.
- The Bank of England (BoE) is likely to deliver another interest rate cut this summer, while the European Central Bank (ECB) appears to be the first central bank to have reached its terminal rate, having cut to 2% in Q2.
- Investment grade yields are attractive on a historic basis but we believe the key is building portfolios that will be resilient to market stress when it remerges, with a focus on quality and liquidity.
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