Matterley, the fund division of Charles Stanley, has launched an absolute return bond fund aiming to achieve a mixture of income and capital growth.
The Matterley Bond Opportunities Fund aims to achieve a total return of between 5 and 6 per cent after fees.
Peter Geikie-Cobb, Matterley’s managing director, said: “Until bond yields correct to higher levels that are more sustainable in the medium term, bond investors will need to be much more opportunistic and selective with their investments in order to outperform.”
Key features:
• Income paid on a quarterly basis
• The launch portfolio only contains government bonds to achieve liquidity
• Run by Peter Geikie-Cobb and Jeremy Palliser
Adviser verdict
Ben Willis, head of research for Bristol-based Whitechurch Securities, said: “It will be a hard slog to attract people to this fund because bonds are so unattractive at the moment. The fund will have to be well-managed for the next 12 months – otherwise they will always be playing catch-up because investors look at past returns.”
