The TwentyFour Corporate Bond Fund, managed by Chris Bowie and team, celebrates its three year anniversary this month. Since launch, the Fund has delivered an impressive 15.63%¹, and consistently beaten the sector total return while providing high level of income and low volatility. The fund returned 7.21%¹ for 2017, outperforming both the iBOXX Corporate Bond index (5.01%) and the Morningstar GBP Corporate Bond sector which returned 3.50%.
Launched in 2015, The Fund aims to exceed the median return of its peer group over the medium to long term based on a combination of income and capital growth. The Fund seeks to achieve its investment objective by investing primarily in Investment Grade bonds. It may also invest up to 20% in high yield issues or floating rate bonds.
The Fund is managed with a strong focus on capital preservation and mitigating volatility. The team selects the best investment opportunities by scouring the large number of global corporate bonds available and utilises TwentyFour’s bespoke quantitative research system – “Observatory” - to seek out the most compelling relative value securities. This ensures an information advantage in analysing and trading in the markets and gives them the ability to pick stocks throughout the investment cycle that add real value to the fund, whilst always seeking to contain volatility.
Chris Bowie, TwentyFour Partner and Portfolio Manager, said: “The third anniversary of the TwentyFour Corporate Bond Fund is a great milestone with the Fund consistently delivering top quartile returns over the last 3 years. Our investment philosophy is focused on risk-adjusted returns and maximising our Sharpe Ratio and we are delighted to have achieved this since inception. Our stock selection and asset allocation decisions have been a key source of alpha in the fund over the three years. We remain of the view that generating a strong income in excess of the benchmark, whilst also protecting capital to a greater degree than the benchmark, will be the best and most sustainable way of outperforming for our clients. We’re constantly monitoring the macroeconomic environment and will make changes accordingly to ensure we have a portfolio which is able to cope with whatever the markets have in store for 2018 and beyond”.
1 TwentyFour Asset Management: Data as at 31st December 2017