UK - Rothschild Asset Management has launched a UK non-government bond fund aimed at institutional clients.
The fund is the latest addition to Rothschild's Five Arrows institutional range of open ended investment company (OEIC) funds. The fund will house an initial £37.5m. The minimum investment level is £1m.
The benchmark for the fund will be the Merrill Lynch All Stocks Non-Gilt Index. The fund will have a target to outperform this benchmark by 0.5% per annum after fees over rolling three-year periods.
Mark Connolly, global head of institutional business at Rothschild, said: Existing clients are shifting benchmark weightings in favour of bonds and away from equities. Within bond mandates, higher benchmark allocations are being made towards non-government bonds.
“These trends are occurring across the size spectrum and this extension of our pooled fund range will allow us to provide a specialist management service to a wider range of clients.”
Rothschild - which manages around £27bn assets under management worldwide - will look to extend its range of institutional pooled funds during the course of the year, with additional fund launches including UK gilt and UK index-linked products .
By Madhu Kalia
Partner Insight: In recent years, pensions administrators have seen scheme member engagement increase significantly. The advent of Pensions Freedoms in 2015 and the increased choices faced by members have led to a sea-change in the levels and types of...
Purna Bhudia looks at how the PPF's investment strategy has evolved, especially in the area of credit
Two consultancies have reported decreases in defined benefit (DB) transfer quotation requests in Q3, and said guaranteed minimum pension (GMP) equalisation could impact transfer activity.
The Association of Consulting Actuaries (ACA) and Royal London have proposed a "pensions pound" to "radically simplify" defined benefit (DB) pensions rights.