Short Duration Global Index Linked Fund


Fund overview

The Fund seeks to maximise total investment return (including income and capital growth) over the medium term by investing mainly in UK and global index linked bonds. The fund may also invest in Floating Rate Notes (FRNs), Money Market instruments and Gilts as the Manager deems appropriate. Non– sterling assets will be hedged back into sterling. The Fund invests primarily in UK, US and European index linked bonds, however there may also be some investment in overseas government and corporate bonds, FRNs and money market instruments and UK credit.

Manager

Paul Rayner is Head of Government Bonds at RLAM.  Paul joined RLAM in June 2005 from SG Asset Management where he was Head of UK Bonds. Paul has over 30 years’ experience in managing UK and global government bonds and is a graduate in Economics from the University of Kent. 

 

Craig joined RLAM in 2009, becoming Head of Short Rates and Cash in 2016. He is responsible for the management and oversight of RLAM’s short rate strategies which include our Cash Plus and Enhanced Cash Funds. In addition Craig jointly manages the government bond strategies with Paul Rayner, Head of Government Bonds. Prior to RLAM, Craig was an Investment Director with Scottish Widows Investment Partnership. In addition to 18 years of cash and fixed income experience, Craig has an MSc in Investment Analysis from Stirling University and a BSc (Hons) in Actuarial Mathematics and Statistics from Heriot-Watt University.

Investment approach

The Fund is managed using a combination of top-down analysis, based on our macroeconomic views overlaid with bottom-up security selection. At the macro level, the process starts with a quarterly economic review which covers all major economic regions and focuses upon key variables such as growth rates and inflation. This meeting is also used to formulate our outlook scenarios, including short-term, medium-term and long-term yield and interest rate forecasts which underpins our investment strategy.

Moving to the micro level, our selection of individual bonds is driven by our economic views and an assessment of value. To achieve this we use our proprietary relative value model. The output from this model is reviewed daily and used alongside other regression based models to assist with the selection of individual bonds. In addition we also look at stock specific factors that are vitally important. Overall, we aim to construct diversified portfolios that will deliver consistent alpha from multiple sources.

Product Risk Warning

Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. Unlike the income from a single fixed income security, the level of income (yield) from a fund is not fixed and may go up and down. For funds that use derivatives, their use may be beneficial, however, they also involve specific risks. Derivatives may alter the economic exposure of a fund over time, causing it to deviate from the performance of the broader market. This fund can invest more than 35% of its value in government securities.

Short duration bonds ezine