UK – London-based Rothschild Asset Management has launched a new UK corporate bond fund as part of its institutional pooled fund range. The new fund will have an initial value of £37.5m (€61.2m) and is part of its Five Arrows open-ended investment company (OEIC) fund range.
It will be benchmarked against the Merrill all stocks non-gilt index which it is expected to outperform by 0.5% per year over rolling three-year periods.
Mark Connolly, head of institutional business, says the fund has been launched in line with the trend towards greater investment in fixed income at the expense of equities.
“Clients are shifting benchmark weightings in favour of bonds and away from equities and, within bond mandates, higher benchmark allocations are being made towards non-government bonds,” he says.
Other pooled funds that Rothschild expects to launch this year include UK gilt and UK index-linked funds.
The Rothschild group currently has £27bn (€44bn) under management.