Fund manager Jupiter has launched a Global Monthly Income Bond Fund in multiple markets including the UK, Europe, US offshore and Latin America.
The new fund will be run by Hilary Blandy, who has managed a similar UK strategy, Jupiter Monthly Income Bond since September 2020.
In that time the fund has grown from under £37.75m to more than £453m in assets under management. Jupiter said its performance placed it in the top quartile of comparable funds in the IA £ Strategic Bond sector over most time periods.
The new fund invests in global corporate credit, mixing safer, higher quality investment grade bonds with riskier, high-yield credit.
It aims to supply an attractive and consistent income stream without big swings in value when markets are volatile and says it keeps duration, or sensitivity to interest rates, moderate.
is measured against a specific custom benchmark, which mixes shorter-dated investment grade and high-yield bonds issued by companies in developed markets. The benchmark serves as a long-term guide for how much credit risk the fund takes and its sensitivity to movements in interest rates.
The fund is registered in the UK, Ireland, Germany, Austria, Netherlands, Italy, France, Luxembourg, Spain, Portugal, Denmark, Finland, and Switzerland.
Hilary Blandy, the new fund’s investment manager, said: “We have a clear idea of what we are trying to deliver for clients: attractive and consistent income with low volatility.”
She said since the pandemic, inflation has been stubborn, political risk has been high and government bond markets have been more volatile. She said that has been challenging for many traditional flexible bond funds, but the upside is that bonds are now pay higher yields.
Ms Blandy added: “We believe that funds like ours, which can potentially earn a healthy yield for taking only moderate interest rate and credit risk, are better suited to this new market environment.”