While the top-down analysis helps confirm the views and thoughts of the team, these ideas are still filled through bottom-up stock selection.
The fund uses its stock-picking, proprietary database, called the Observatory, which helps the manager look at bonds from a risk-adjusted perspective.
It works by storing data from more than 26,000 bonds every day and combines spread, yield and historic volatility data.
The fund has a strong focus on liquidity and typically holds around 10 per cent in government bonds – to meet any requirements.
The portfolio also has limits on the number of positions it can take to ensure the portfolio risks are understood and managed (around 100 bonds).
As part of the whole process, each manager at TwentyFour will execute their own trades. This helps them build knowledge of how certain securities trade, and therefore develop an edge over other managers.
Even with a focus on minimising risk, while in the throes of a bond bull market, Chris has delivered solid returns.
As we have moved into a more uncertain world, the dependability of this fund makes it a stand-out from its peers – and particularly attractive to low risk investors.
Darius McDermott is managing director of FundCalibre