Specialist high grade bond manager Jamieson Coote Bonds has launched a global absolute return fund providing investors with a defensive alternative that is uncorrelated to traditional fixed income market benchmarks and risk assets.
The company says the fund is suitable for investors looking for income, diversification and defensive investment characteristics.
The CC JCB Dynamic Alpha Fund only invests in global high-grade government-issued assets (G7 nations and Australia), keeping the underlying asset pool of the highest quality. The assets are unencumbered by benchmark relative constraints, which can help mitigate against periods of market volatility and potentially profit from them. The fund aims to outperform the RBA Cash Rate by 2.50% p.a. (after fees) over rolling 3 year periods and offers investors daily liquidity.
Chief investment officer Charlie Jamieson said: “The fund has no natural index, that is, we’ve removed the beta allocation to make a more absolute return style, lower volatility offering with no credit exposure, and it is hedged back to AUD.
“The fund invests in government-backed instruments that are highly liquid, and held up well during the illiquidity we saw during March and April this year. We only invest in sovereign debt, so we do not use corporate credit instruments at all. We see this as an alternative solution in a world where the options for consistent income are credit based and often illiquid.”
Since the fund’s inception in December 2019, it has returned 3.97% after fees to 31 July 2020. The fund is currently awaiting research ratings but has experienced early demand from financial advisers looking to help offset other risk exposures, such as equities and credit in the current climate with the benefit of regular income and daily liquidity.
The fund is managed by chief investment officer, Charlie Jamieson, and deputy chief investment officer, Kate Samranvedhya, who is based in Singapore.
Jamieson Coote Bonds currently has A$4.25 billion of assets under management in its domestic and global strategies for both institutional, wholesale and retail investors and is distributed by multi-boutique Channel Capital.