Richard started the presentation by explaining that many people think the bond market is on its last legs, and therefore there is little point investing. Richard would disagree with this but even if in part this is true he feels that this fund can respond to whatever the market is doing. The fund is managed with a total return mindset meaning that the fund looks to protect on the downside (i.e. falling markets), as well as participating when the markets go up.
The long-term aim is to deliver a yield (income) of between 3% and 5% with a small amount of growth. At the same time Richard wants to keep volatility low. Against the index the volatility is slightly higher but still below 4%. The maximum is 7/8% but the reality is that Richard wants to keep it below 4%. The fund has delivered stronger performance than the index…read more