Twen­tyFour Cor­po­rate Bond Fund (BSMTGJ1)

Shares - - TALKING POINT -

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.

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