FOCUS ON FIXED INCOME
TwentyFour Corporate Bond Fund (BSMTGJ1)
Debt securities like bonds and gilts, also known as fixed income investments, offer the attraction of greater security than stocks and shares alongside regular income and can be a good option as part of a balanced portfolio.
TwentyFour is a specialist asset manager which is entirely focused on bonds. Headed by experienced lead manager Chris Bowie, the team behind this fund use a proprietary ‘Observatory’ screening tool to help select bonds. This results in a concentrated fund which typically includes fewer than 100 individual bonds. For the most part the focus is on the UK which accounts for just more than 70% of the portfolio. The ongoing charge is a competitive 0.39%. Alternative: Vanguard UK Inflation-Linked Gilt Index Fund (B45Q903). This low-cost passive fund might suit cautious investors who want exposure to typically lower yielding but also lower risk government bonds.