Vontobel Fund - TwentyFour Sustainable Short Term Bond Income

A short term bond fund that aims to provide investors with a sustainable fixed income solution without compromising overall returns.

Based on TwentyFour’s well-known Vontobel Fund – TwentyFour Absolute Return Credit Fund (ARC), SSTBI applies both positive and negative ESG screening to the investment universe, a system designed to reward companies for sound ESG practices. Like ARC, SSTBI is an actively managed short term bond fund that aims to deliver steady returns in any market environment while keeping volatility to a minimum. With strict risk parameters and a focus on short dated investment grade bonds, the managers aim to sustainably capture nearly all the returns of higher risk strategies but with a fraction of the drawdowns expected in tougher market conditions.

Why invest?

• Our ESG screening process helps to ensure investors’ capital is invested sustainably, while still benefiting from TwentyFour’s specialist and active approach to fixed income
• A negative screen rules out familiar ‘sin’ sectors, but then importantly a positive screen excludes any bond issuers we score lower than 34 out of 100
• Our research has shown that this threshold of 34 would have given the best possible risk-adjusted returns for a given low level of volatility and appropriate diversification
• A minimum of two-thirds of the fund is invested in 0-5yr investment grade bonds, which we consider the best source of risk-adjusted returns within fixed income
• The portfolio has a limit of around 100 positions to allow for stock selection alpha, and a strong bias towards BBB rated corporate bonds in order to target better yields

Investment team