A short term bond fund that targets the very best risk-adjusted returns within fixed income while keeping volatility to a minimum.
The Vontobel Fund - TwentyFour Absolute Return Credit Fund (ARC) is an actively managed short term bond fund that aims to deliver steady returns in any market environment. With strict risk parameters and a focus on short dated investment grade bonds, ARC aims to capture nearly all the returns of higher risk strategies but with a fraction of the drawdowns expected in tougher market conditions.
Why invest?
- We aim to achieve a positive absolute return in any market environment over three years, by keeping a modest level of volatility
- A minimum of two-thirds of the fund is invested in 0-5yr investment grade bonds, which we consider the best source of risk-adjusted returns within fixed income
- Smaller high conviction allocations to BB rated high yield, asset-backed securities (ABS) and 6-7yr investment grade bonds
- A strong emphasis on stock selection seeking to generate alpha and further manage risks. All bond positions must pass a rigorous screening process to show they have good return potential with low expected volatility
- We use zero leverage or shorting, and when allocating our mix of assets we choose to avoid emerging markets and high yield bonds rated below BB (the highest rating band in HY)
