We find the TwentyFour Corporate Bond fund attractive for a number of reasons. First, it is managed by an impressive team led by Chris Bowie, who in our view is a highly experienced investment professional. He is supported by four analysts dedicated to researching sterling corporate bonds and who enjoy the backing of the broader resource offered by the highly-regarded team at TwentyFour. All investment professionals within this investment boutique have spent their entire careers investing in fixed income assets. Furthermore, the philosophy guiding the business is very much aligned with its investors as all portfolio managers hold a significant portion of their personal savings in the funds they manage. In addition, TwentyFour is considering the closure of the TwentyFour Corporate Bond fund to new investors. We view this as a positive move as it demonstrates that the company is focused on generating returns for clients rather than on growing assets and increasing revenues for the business.
The fund adopts a high conviction approach to investing which we think is compelling. It will only hold 100 positions at any one time which means that they all must make a meaningful contribution to performance. The fund’s managers also have a long-term focus which means turnover is low and transaction costs are therefore reduced. Above all, the fund’s focus on capital preservation and minimising volatility is appealing. The managers concentrate on delivering the best possible risk adjusted returns and they have delivered on this target since the fund’s inception five years ago. As well as offering above average returns, the fund has one of the lowest levels of volatility and drawdowns among its peer group within the IA Sterling Corporate Bond sector.
The combination of these characteristics means that the TwentyFour Corporate Bond fund is a good fit for the philosophy which guides Square Mile’s investment team.
Eduardo Sanchez, Senior Investment Research Analyst
Source: Square Mile Investment Consulting and Research Limited. Investment Partners to Ernest Grant.
Important Information: This document is issued by Ernest Grant Limited. Ernest Grant Limited makes no warranties or representations regarding the accuracy or completeness of the information contained herein. Nothing in this document shall be deemed to constitute financial or investment advice in any way. This document shall not constitute or be deemed to constitute an invitation or inducement to any person to engage in investment activity. Past performance is not a guide to future returns and the value of capital invested and any income generated from it may fluctuate in value.
