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.

Portfolios are managed against a reference index or with a defined target return. The team’s high conviction approach is heavily based on managing risk and limiting volatility, while targeting relative value by geography, sector and security to deliver alpha for the portfolio.

Funds invest predominantly in investment grade, fixed rate bonds, though portfolio managers have the ability to make limited allocations to high yield bonds and asset-backed securities (ABS), if they feel prevailing market conditions mean they are required to deliver on the mandate..

Funds

3 funds available

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TwentyFour Corporate Bond Fund

Investment Grade

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Share class Currency ISIN Valor NAV YTD As at
Acc GBP IE00BSMTGJ19 128.39 5.93% 25 Nov 2020
I Acc GBP IE00BSMTGG87 131.61 6.12% 25 Nov 2020
I Inc GBP IE00BSMTGF70 105.92 6.12% 25 Nov 2020
Inc GBP IE00BSMTGH94 105.03 5.92% 25 Nov 2020
Vontobel Fund - TwentyFour Absolute Return Credit Fund

Investment Grade

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Share class Currency ISIN Valor NAV YTD As at
AHN (hedged) EUR LU1683487620 38261757 91.85 1.21% 27 Nov 2020
AI GBP LU1267852249 29030549 93.16 1.93% 27 Nov 2020
AQG GBP LU1530788402 34854330 104.00 2.07% 27 Nov 2020
AQHG (hedged) USD LU1767065979 40241908 104.37 2.41% 27 Nov 2020
AQHG (hedged) EUR LU1530788238 34854291 97.06 1.26% 27 Nov 2020
AQHN (hedged) EUR LU1331789450 30670277 100.78 1.23% 27 Nov 2020
AQHNG (hedged) USD LU1410502493 32553207 107.04 2.57% 27 Nov 2020
AQN GBP LU1331789377 30670273 109.33 1.90% 27 Nov 2020
AQNG GBP LU1368730674 31599783 104.02 2.03% 27 Nov 2020
G GBP LU1273680238 29168014 118.19 2.07% 27 Nov 2020
HG (hedged) EUR LU1925065655 45492332 105.03 1.38% 27 Nov 2020
HI (hedged) CHF LU1599320444 36446926 102.89 1.10% 27 Nov 2020
HN (hedged) USD LU1767066357 40236072 109.56 2.27% 27 Nov 2020
I GBP LU1267852082 29030420 117.49 1.93% 27 Nov 2020
N GBP LU1267852595 29030838 117.26 1.89% 27 Nov 2020
Vontobel Fund - TwentyFour Sustainable Short Term Bond Income

Investment Grade

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Share class Currency ISIN Valor NAV YTD As at
AHI (hedged) EUR LU2081486727 51133685 100.68 - 27 Nov 2020
AQG GBP LU2081485596 51132454 100.25 - 27 Nov 2020
AQI GBP LU2081485919 51151249 101.39 - 27 Nov 2020
AQNG GBP LU2081485679 51132474 99.93 - 27 Nov 2020
G GBP LU2081485240 51132430 101.31 - 27 Nov 2020
HI (hedged) EUR LU2081486560 51132543 100.47 - 27 Nov 2020
NG GBP LU2081485323 51132452 101.24 - 27 Nov 2020

What are Investment Grade bonds?

Investment grade bonds are fixed income securities issued by companies with a medium or high credit rating from a recognised credit rating agency, which are considered to be at lower risk from default than those issued by companies with lower ratings.

Bond investors face ‘asymmetric risk’ when making investments, in that the expected loss associated with a company defaulting on a bond is typically greater than the expected return on the security should the company repay the debt as planned.

Investment grade bonds are those rated BBB- or higher by at least two recognised credit ratings agencies, the biggest three of which are Moody’s, Standard & Poor’s and Fitch (bonds rated lower than BBB- is considered ‘speculative grade’). IG bonds achieve higher ratings because they are deemed to be at lower risk of default, meaning investors are typically prepared to accept lower yields for holding this debt than for lower rated bonds from riskier companies.

As such, strategies that keep a core allocation to investment grade securities can expect a smoother risk and return profile than those focused on the potentially higher capital gains associated with lower rated bonds.

It is important to note that TwentyFour does not rely on the judgment of external ratings agencies to determine whether one bond is riskier than another. Portfolio managers conduct their own rigorous credit analysis on every potential investment, regardless of the company or bond’s rating.

TwentyFour’s investment grade strategies are designed to be held as a core fixed income allocation that can deliver steady, repeatable returns throughout the economic cycle.

Why invest?

 

More liquid

Investment grade bonds are widely held by institutional investors, so they tend to be more liquid and less volatile than lower rated bonds.

Higher yields

They offer higher yields compared to investment grade government bonds.

Low default risk

Relatively low default risk means investors can have greater certainty on expected returns.

 

Diversification

The investment grade bond universe offers extensive diversification, with virtually every corporate sector represented in the global market.

Steady income

Investment grade bonds have the potential to provide steady income

Meet the team

 

Investment Grade Insights