TwentyFour announces restrictions on inflows into the Dynamic Bond Fund

Specialist fixed income fund manager TwentyFour Asset Management have announced they will be restricting inflows into the award winning Dynamic Bond Fund by increasing the minimum initial investment size, following notification to the Regulator.

The fund, which sits in the IA’s £ Strategic Bond Sector, aims to provide an attractive level of income along with an opportunity for capital growth, by investing in a broad range of bonds and fixed-income assets. Since inception at the end of April 2010, the fund has returned 53.01%*, vs the sector which returned 34.17%**. 

Commenting on the fund Gary Kirk, Founding Partner and Portfolio Manager said, “The Dynamic Bond Fund is managed as a high conviction portfolio with a concentrated number of issuers and a significant amount of value and alpha is generated from this stock picking approach. However, we recognise that given current market liquidity conditions, managing the fund in this manner does mean that we are constrained by overall size. By restricting inflows into the Dynamic Bond Fund ahead of reaching capacity, we aim to maintain performance, as well as providing a buffer for existing investors so they can carry on using the fund as they have been.”

Chief Executive Mark Holman commented “We have seen strong inflows into the Dynamic Bond Fund over the last 12 months as we continue to build up our track record and provide attractive returns to our investors. Restricting inflows will enable the Portfolio Managers to carry on managing the fund in a truly strategic manner without compromising liquidity, quality or conviction. This is another important milestone for TwentyFour and shows that we are focussed on our clients’ investment needs. Whilst new investment into this fund will be restricted, we will be looking to launch a global unconstrained bond fund later this year.”

The Dynamic Bond Fund is currently c. £735m in size and the restrictions will be implemented to new investors from the beginning of May 2015, following notification to the Regulator.

*Class I Acc (Gross), 28th February 2015

** Sector UT Sterling Strategic Bond TR in GB - 26th April 2010 to 28th February 2015

For further information please contact:

John Magrath
Partner, Head of Distribution
TwentyFour Asset Management
Tel: 020 7015 8912