Fixed IncomeMar 31 2015

TwentyFour to restrict inflows on Dynamic Bond fund

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TwentyFour to restrict inflows on Dynamic Bond fund

TwentyFour Asset Management has sought to stem inflows into its Dynamic Bond fund by raising the minimum investment to £50m.

The fixed income asset manager has moved to restrict the size of the portfolio at around £750m after the fund has nearly tripled in size from just over £250m this time last year.

The fund is currently £735m and TwentyFour said from the beginning of May new investors would face a high minimum investment of £50m to discourage them from buying in.

Gary Kirk, founding partner and portfolio manager at TwentyFour, said the Dynamic Bond fund was a “high conviction portfolio with a concentrated number of issuers”.

He explained in “current market liquidity conditions”, which are difficult for fixed income managers, the fund is therefore constrained in its size.

“By restricting inflows into the Dynamic Bond fund ahead of reaching capacity, we aim to maintain performance, as well as providing a buffer for existing investors so they can carry on using the fund as they have been,” he added.

Since the fund’s launch in April 2010, the fund has delivered a return of 50 per cent compared to the IA Sterling Strategic Bond sector average of 33.3 per cent, according to data from FE Analytics.