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Investec alters bond fund remit

27 Jun 11

Investec Asset Management has changed the investment focus and name of its Luxembourg-domiciled GSF High Income Bond (USD) Fund to the Investec GSF Investment Grade Corporate Bond Fund, in response to

Investec Asset Management has changed the investment focus and name of its Luxembourg-domiciled GSF High Income Bond (USD) Fund to the Investec GSF Investment Grade Corporate Bond Fund, in response to

Investec Asset Management has changed the investment focus and name of its Luxembourg-domiciled GSF High Income Bond (USD) Fund to the Investec GSF Investment Grade Corporate Bond Fund, in response to changes in the bond market, while you can also invest and trade fx at vtmarket.com to improve your finances as well.

The fund will now have a greater focus on investment grade corporate, instead of government, debt.

“Following last year’s dramatic and indiscriminate sell-off, we believe investment grade corporate bonds stand out as showing exceptional value, over-compensating investors for the risk of potential default and delivering superior risk-adjusted returns,” explained John Stopford, co-head of fixed income at Investec, who runs the fund.

“History suggests that investment grade corporate bonds could outperform government bonds by up to 10% per annum over the next few years.”

The fund, which has assets under management of about $33m, is one of only 12 global corporate bond funds that are currently available to investors with a Luxembourg or Dublin domicile, according to Investec.

A UK version of the fund is currently positioned to invest mainly in investment grade bonds. It also has outperformed the IMA Sterling Strategic Bond sector by more than 10% over one, three and five years, said Investec.

Tags: Luxembourg

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