Charles Stanley's fund division Matterley has launched the FP Matterley Bond Opportunities Fund.

The fund, co-run by Peter Geikie-Cobb and Jeremy Palliser aims to achieve a total return of 5-6%, combining both Income and Capital growth with downside protection strategies. The fund will invest predominantly in highly liquid investments and is an Absolute Return Bond Fund.

Mr Geikie Cobb, who joined Matterley as managing director in January, said: "After months of hard work, we are delighted to be in a position to officially launch the fund.

"Our reasoning for the launch is simple: Until bond yields correct to higher levels that are more sustainable in the medium term, i.e. real yields at the very least return to positive territory, bond investors will need to be much more opportunistic and selective with their investments in order to outperform."

"The bond markets in general are unlikely to provide the insurance against volatile equity markets that investors have become used to over the last 30 years. It could therefore be argued that volatility has become the new bond market – and funds should have strategies embedded in their portfolios that take account of volatility."

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Key features of the FP Matterley Bond Opportunities Fund

• Absolute Return Bond Fund (i.e. no benchmark) targeting conservative returns of 5-6% per annum after fees.
• Liquid fund at all times - fund's launch portfolio will contain Government Bonds only – i.e. no corporate debt.
• Income – current model portfolio yielding circa 4.5% after fees – paid quarterly.
• Downside protection – via use of volatility strategies.
• Experienced managers (Peter Geikie-Cobb & Jeremy Palliser combined investment experience of over 60 years).
• Daily traded UCITS regulated OEIC.
• Access to institutional share class with an AMC of 50bp (no performance fees) to all investors for the first month.