Fixed Income

Given where asset prices are at the moment, we would categorise inflation as a low probability, but high impact, risk.

Next month’s budget now has the green light to be Johnson’s fiscal bazooka, with tax cuts, housing schemes and infrastructure projects already mooted.

Partner and Portfolio Manager Chris Bowie discusses our new sustainable, short duration credit fund; TwentyFour Sustainable Short Term Bond Income.

After a year of over 100 rate cuts around the world in 2019, we felt that 2020 would see major central banks engage wait-and-see mode.

This deal may well perform in the short-term, and we sincerely hope Alpha’s plan works, but we also recognise there is a high degree of execution risk and the domestic economy still has considerable headwinds.

Perfect timing is practically impossible in situations like these, but one way to tackle this risk is to gradually reduce ‘good’ duration by moving to the shorter part of the UST curve, which would be less sensitive to a move higher in yields.

Chris Bowie outlines the highlights and lowlights for the fund, the successes and challenges, the triumphs and the odd sleepless night.

In what was Mark Carney’s last meeting as governor of the Bank, the MPC delivered a mixed message.

The TwentyFour Corporate Bond Fund has recently celebrated its 5 year anniversary. Partner and Portfolio Manager Chris Bowie looks back and reflects on the successes and challenges of running the fund over the last five years as well as providing an outlook for the Fund going forward.

Given the material positive performance seen in other parts of the fixed income markets in 2019, the CLO relative value proposition now looks even more attractive.

A rate cut now makes very little sense to us, and wastes one of the few bullets the BoE has left in its armoury. If they do decide to cut next week, we think it will be reversed within 12 months.

TwentyFour Asset Management, the London and New York-based specialist fixed income boutique of Vontobel Asset Management, has launched the Vontobel Fund - TwentyFour Sustainable Short-Term Bond Income Fund.