Phillips & Drew has brought out two pooled corporate bond funds for institutional clients unable to ...
Phillips & Drew has brought out two pooled corporate bond funds for institutional clients unable to get sufficient exposure to gilts.
The shortage of Government stock, a by-product of the healthy state of the UK's finances, has meant pension funds are trying to find alternative instruments to match their liabilities.
The Phillips & Drew Life Corporate Bond fund will invest in sterling denominated investment grade bonds in the AAA, AA, A and BBB range across the maturity spectrum.
The Phillips & Drew Life Over 15 Year Bond fund will have the same parameters but only invest in bonds with a maturity of more than 15 years.
Martin Jones, head of bonds at Phillips & Drew, said: "These are aimed at institutional pension fund investors who want access to corporate bonds."
The two funds will be run by the Phillips & Drew credit group, led by Mike Griffiths.
Griffiths said: "By pooling client assets, we can ensure appropriate diversification for investors and invest in a wide range of corporate bond issues. Our approach will aim to exploit anomalies in the relative valuations of corporate bonds."
The funds will be benchmarked against the Barclays Sterling Corporate Bond indices.
The annual management fee is 0.35% for the first £10m invested and 0.125% for the remainder of money invested.
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