Rathbone Unit Trust Management is launching a Luxembourg-domiciled version of the Rathbone High Quality Bond Fund for institutional investors based in continental Europe.
It will be managed by Noelle Cazalis.
The fund sits under Rathbones’ Luxembourg Sicav umbrella, launched in May 2016; and will benefit from the same strategy, objectives, and investment process as that of the UK-domiciled fund.
This centres on preserving capital and paying an income by delivering a greater total return than the Bank of England’s base rate +0.5%, after fees, over any rolling three-year period.
Investment strategy
The fund will invest at least 80% of assets in government and corporate bonds with high credit ratings.
Rathbones defines a high credit rating as A- and above, based on the average of the three largest rating agencies (Standard & Poor’s, Moody’s and Fitch).
It can invest up to 20% of assets in a mixture of investment grade government and corporate bonds with lower credit ratings (BBB+ to BBB-) or no rating at all.
Cazalis is supported in credit analysis and selection by Rathbones’ fixed income team, led by head of fixed income, Bryn Jones.
The Z-class shares are available with the following charges:
| Share class | Annual Management Charge | OCF (capped) | Transaction Costs (est.) | Total Mifid II charges |
| Z-class | 0.20% | 0.35% | 0.06% | 0.41% |
The minimum investment is £100m (€111m).
Fund manager Cazalis said: “The fund aims to provide a cautious option within fixed income portfolios.
“With a focus on high-quality credit names and a short duration, the fund should help to limit maximum drawdowns in portfolios.”
