TwentyFour Asset Management, the London and New York-based specialist fixed income boutique of Vontobel Asset Management, has launched the Vontobel Fund - TwentyFour Sustainable Short-Term Bond Income Fund.
Managed by Chris Bowie, the fund will meet growing demand for sustainable products within fixed income. The fund will apply the same investment process as Bowie’s Absolute Return Credit strategy, which has been running since 2015. The fund aims to achieve a positive total return over a three-year period while maintaining an annualised volatility of no more than 3%, with an added sustainability overlay including both negative and positive screening.
Graeme Anderson, Chairman and Portfolio Manager said: “We firmly believe that Environmental, Social and Governance (ESG) factors can have an influence on the value of our investments and we have an ESG integration framework embedded in our investment process. Extending our range to include a sustainable product was a natural next step for TwentyFour.”
Chris Bowie, Partner and Portfolio Manager added:“Our sustainable short-term bond fund responds to a gap in the market, offering fixed income investors an opportunity to invest in a long-only, short duration credit strategy with a sustainability overlay. We carried out extensive quantitative work to assess whether we could manage such a strategy on a sustainable basis. I welcome the opportunity to build upon our existing track record in this exciting new direction.”