Smith & Williamson announces launch of the Short-Dated Corporate Bond Fund
The Investment Management arm of Smith & Williamson has externally announced the launch of the new Smith & Williamson Short-Dated Corporate Bond Fund. The fund launched on April 29th has already raised approximately £25m. Ian Kenny is fund manager of the new fund and a long-standing member of the in-house Fixed Interest team led by Chris Lynas. Chris has been managing the top quartile** Smith & Williamson Fixed Interest Trust since 1995.
Ian commented: "We believe that the new fund is an opportunity for the more risk averse investor hoping to help bridge the gap between cash deposit rates and their income requirements."
Nick Hodgson, [Director of Marketing and Sales] from the Investment business, said: "The fund takes a cautious approach and aims to provide a higher yield than cash without taking on excessive credit risk. It is principally targeted at investors with a one - three year investment horizon. As current bank interest rates look increasingly unrewarding, and are likely to remain so, short-dated corporate bonds are appealing to investors searching for a higher yield than cash without excessive risk."
The fund's lower-risk approach will be achieved by focusing only on short-dated, high-grade corporate bond issues. Conventional bond funds tend to consist of longer duration bonds, with the potential for increased volatility, or lower grade corporate bonds with an increased risk of company defaults. The fund's projected gross income yield at launch was 3.7% (after charges).
Hodgson said: "We have developed this unique product for the cautious investor. The fund will provide valuable diversification benefits when combined in a portfolio with other asset classes, such as equities, longer-dated bonds and cash."
The fund is ISAble and will be available on Cofunds from June 1st.
Commenting on the addition of the fund, Russell Lancaster Director, Fund Manager Relationships at Cofunds said: "Unsurprisingly in these markets, we have seen strong demand from advisers for corporate bond funds. We're delighted to enable advisers to gain access to yet more choice for their clients in this sector."
Smith & Williamson Investment Management Limited has approximately £7.9bn of assets under management and advice as at 31 January 2009.
*The Smith & Williamson Short-Dated Corporate Bond Fund is an OEIC domiciled in Dublin, IFSRA authorised and FSA recognised.
**Smith & Williamson Fixed Interest Trust is 1st quartile over 3 months, 6 months, 1, 3 & 5 years, as at 31st March 2009. Source: Lipper Hindsight, mid-mid, net income reinvested at ex-d dates
For further information
Nick Hodgson, Director of Marketing and Sales at Smith & Williamson Investment Management
Tel 020 7131 4630
Email: nick.hodgson@smith.williamson.co.uk
Disclaimer
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.
Note to editors
Smith & Williamson is an independent professional and financial services group employing over 1,500 people. The group is a leading provider of investment management, financial advisory and accountancy services to private clients, professional practices and mid-to-large corporates. The group operates from offices in London, Belfast, Birmingham, Bristol, Dublin, Glasgow, Guildford, Maidstone, North London, Salisbury, Southampton and Worcester.
Smith & Williamson Investment Management is part of the Smith & Williamson group.
Smith & Williamson Investment Management Limited
Authorised and regulated by the Financial Services Authority
Smith & Williamson Investment Management
a trading name of NCL Investments Limited (member of the London Stock Exchange) and Smith & Williamson Investment Management Limited. Both companies are authorised and regulated by the Financial Services Authority.
NCL Investments Limited
A member of the London Stock Exchange Authorised and regulated by the Financial Services Authority
Smith & Williamson Fund Administration Limited
Authorised and regulated by the Financial Services Authority
