VAM Funds launches global government bond fund
VAM Funds is launching a global bond fund targeting government debt and government-guaranteed bonds.
The VAM Global Government Bond Fund is a Ucits-III compliant Sicav that invests in a portfolio of government bonds and investment grade ‘AAA’ and ‘A’ rated bonds, which are government guaranteed. VAM said these bonds will incur low trading fees due to the depth of markets and will produce a low-risk, high quality portfolio. It will target a yield of 4% net of charges.
VAM's managers are chosing their bonds based on a combination of macro research and top down fundamental and economic research, as well as using quantitative and technical models to determine entry levels.
VAM Funds has appointed Swiss-based asset management boutique Peers SA to manage the fund, with co-owner Annelise Peers as fund adviser. Peers previously worked for Insinger Asset Management and most recently has been running the South African steel industry’s pension fund.
VAM said German bonds account for 40% of its initial portfolio, the largest share by a single country. France and Japan represent around 10% each, while the UK and US account for 13% and 12% of the fund's holdings respectively. The rest of the portfolio will be invested in Australia and Canada, while around 4% will be left in cash.
Michael Hunt, managing director of VAM Funds, said: “Government bond funds are low risk investments that provide steady returns over the long term, as well as adding diversification to investment portfolios.
“We have seen a great deal of demand from IFAs for a product of this nature."
Fund Information:
Min investment: $10,000 / €8,000 / £5,000 initial and $1000 / €800 / £500 additions
Weekly dealing
Annual management charge: 1.20%
Share classes: USD, EURO, GBP
Domiciles and regulated: Luxembourg, part II
Portfolio manager: Peers SA
Custodian and Administrator: VP Bank, Luxembourg
Auditors: Ernst & Young, Luxembourg
Weightings: Government: 96.27%, Cash: 3.73%