psigma joins with twentyfour

PSigma Investment Management has joined forces with TwentyFour Asset Management to launch the TwentyFour Focus Bond Fund, seeded with nearly £50m in assets and created for use by PSigma’s clients.

psigma joins with twentyfour


The fund has been designed to try and generate a more predictable return for investors, which it will seek to do by only selecting bonds that are expected to redeem by 2016.

PSigma said by targeting a ‘redemption window’ in this way investors can expect to achieve a relatively stable level of income and at the same time minimise the ‘duration risk’ inherent in most other fixed income funds.

In addition, because of the targeted redemption of the bonds within the fund, the ‘default risk’ of the underlying bond portfolio will effectively reduce every day as the redemption window approaches, PSigma said.

Thomas Becket, CIO of PSigma Investment Management, said: "In our opinion this innovative strategy allows our clients to gain access to one of the best risk/reward opportunities currently available within global financial markets.

He said a key PSigma theme this fund would help to bolster was the ‘hunt for yield’, which has been buoyed by mis-pricing that has occurred in credit markets because of the chaos in Europe.

"We believe the relative yields on offer from European corporate bonds are currently very attractive. This fund should enable us to deliver an extremely attractive yield of about 7% (net of charges)," added Becket.

At the end of 2016 when the bonds have redeemed PSigma will reshape the portfolio dependent on the opportunities in global fixed interest markets at that time.

The mandate will be run by TwentyFour Asset Management, which is a fixed income specialist founded in 2008 and which has approximately £1bn in AUM.



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