UK - Britannic Asset Management has launched a long corporate bond fund designed for matching long-term liabilities.
The fund is actively managed and aims to outperform the Merrill Lynch Sterling Non-Gilts 10-plus Years Index by 0.7% (gross of fees) on a three-year rolling basis.
Head of institutional Fiona Ross saw the fund as meeting a “growing need” from trustees who realise they must not be passive about corporate bonds.
She said: “There will be a growing requirement for actively-managed bond funds.
“Long gilts have been used to match the long-term liabilities of pension schemes, but those schemes are now keen to access the enhanced yields offered by corporate bonds.”
She added: “Passive funds cannot take action against stock-specific volatility and downgrades and are forced to hold stocks until they drop out of their chosen index.
“An active fund, on the other hand, can actively manage these risks.”
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