Forsyth Partners has launched a fixed interest or bonds funds as the investment firm believes there ...
Forsyth Partners has launched a fixed interest or bonds funds as the investment firm believes there are capital gains to be made even if interest rates are not cut any further this year.
Well-known as a fund of funds provider, Forsyth has continued its strategy and launched The Forsyth Global Bond Fund on 28 December 2001.
Assets are invested in between 12 and 15 underlying fixed interest funds, and its portfolio is intitially broken down so there is 25% of the assets in sovereign debt, 45% in corporate/high yield debt, 25% in emerging market debt and 5% in alternative funds.
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2001 saw 11 rate cuts in the US, placing interest rates down at a 40-year low, says Forsyth Partners, so it can be assumed from this that the US market may not see any further rate cuts.
However, Rossen Djounov, managing director of investment and research at Forsyth Partners argues : "The potential in government/sovereign debt may be limited but the global fixed interest market is extremely diverse and very attractive opportunities exist in many subsets of that market.
"Typically, global bond funds concentrate the bulk of their portfolios on sovereign and high credit quality instruments. Presently, however, the real opportunities are occurring elsewhere and we intend to have a strong emphasis in our portfolio on corporate and high yielding debt instruments, emerging market bond funds and other alternatives."
Corporate bonds, though expected to move with interest rates trends, are thought to outperform government bonds.
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