The £115.9m Keystone Investment Trust has invested around £9m in corporate bonds as part of its rest...
The £115.9m Keystone Investment Trust has invested around £9m in corporate bonds as part of its restructuring, following a mandate shift from Merrill Lynch to Invesco Perpetual in January.
Fund manager Mark Barnett said the portfolio of 10 sterling-denominated bonds has a weighted average investment-grade rating.
'The board didn't want to overly restrict me, but I can't have more than £15m invested in corporate bonds and they must be above investment grade on a weighted average basis,' he said. 'It's very stock specific, and a number of the bonds are from companies I have stocks in already.' The bonds are not included in calculations for gearing in terms of NAV, which leaves his net gearing position at around 1%.
Barnett, who also runs the £252.6m Perpetual Income and Growth investment trust, said a flat market is the best investors can hope for in 2003.
Barnett said most investors are still looking at the market in terms of indices and marketing hype about investing for absolute returns is not being reflected by investment strategy.
£300bn of liabilities
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Transfer from occupational scheme
Appointed by FCA and PSR boards