St James’s Place is to launch two income funds run by investors from US-based Payden & Rygel and Brigade Capital Management as well as UK-based asset managers.
The Diversified Bond fund will target a 5 per cent yield by investing across global fixed interest markets and has been classified as lower to medium risk.
The investment managers on the fund will be able to access returns from various parts of the credit market, including sovereign debt, investment grade corporate bonds, and European and US high-yield credit.
TwentyFour Asset Management’s Gary Kirk and Eoin Walsh will manage the strategy, alongside teams from US firms Payden & Rygel and Bridge Capital Management.
The Strategic Income fund will seek a 7 per cent yield and will also be managed by Gary Kirk and Eoin Walsh of TwentyFour, as well as Schroders and BlueBay Asset Management.
The fund will invest mainly in fixed-interest assets, with “low reliance” on equity markets and low sensitivity to interest rates by blending four strategies.
St James’s Place said: “The fixed-interest elements of the fund cover US, European and emerging market high-yield bonds. The equity income element of the fund focuses on high-dividend equities, but will also use derivative strategies to enhance income and a volatility control overlay to reduce downside risk.”
Jim Wiant and Michael Apfel of US-based MidOcean Credit Partners are responsible for the US-focused high-yield element of the Strategic Income fund, while BlueBay will be responsible for the emerging market high-yield element.
Mike Hodgson of the portfolio solutions team at Schroders will take responsibility for the volatility-controlled, high-dividend equity income element of the fund, according to St James’s Place.
Chris Ralph, chief investment officer of St. James’s Place, added: “The launch of these new strategies reflects our commitment to continually develop our range of funds, ensuring that our clients have access to a range of investment solutions to help them achieve their long-term objectives.”