Smith & Williamson has launched the Smith & Williamson Global Inflation-Linked Bond Fund. The fund aims to provide a transparent, cost effective investment solution for investors who are concerned about inflation but who are also worried by the significant duration risk embedded in UK government index-linked bonds. Managed by Thomas Wells, the fund will provide global exposure predominantly to government-issued inflation-linked debt. It may also invest selectively in investment-grade sterling inflation-linked corporate bonds with the aim of enhancing returns. The fund, a Dublin-domiciled UCITS vehicle, will be focused on high-quality global debt with an average S&P credit-rating of AA, with any non-GBP exposure fully hedged to sterling. It will be benchmarked against the iBoxx Global Inflation Linked Bond Index, also hedged to sterling. To mark the launch, Smith & Williamson is offering all investors access to an institutional share class with an annual management fee of 0.25 percent. The offer expires after 12 months.
BlackRock has expanded its fixed income exchange traded fund (ETF) range with the launch of a floating rate bond fund, designed to protect investor portfolios against a rise in interest rates. The iShares $ Floating Rate Bond UCITS ETF (FLOT) provides exposure to US dollar denominated floating rate bonds. Floating rate bonds offer coupons that adjust to reflect changes in interest rates, compared with traditional bonds which pay fixed coupons. Bonds held in the underlying index of the fund are rated investment grade or higher, and have a maturity of five years or less. The fund is physically-replicating, meaning it holds the underlying securities of the index. It has a total expense ratio of 0.10 percent.
Aberdeen Asset Management has completed the purchase of the five acre former Bath Press site in central Bath for its Pan-European Residential Opportunities strategy. The purchase will see the commercial building redeveloped to provide 244 apartments and houses, Aberdeen expect to be on site constructing the new scheme in early 2018. The Pan-European Residential Opportunities strategy has an investment capacity of over $500 million following a final closing in May. It will ultimately comprise of 10 to 15 assets, aiming to develop residential property in major western European cities where undersupply of housing is increasingly pronounced. The strategy is managed by Christian Schjødt-Eriksen with additional fund management support from Mihaela Ruhl and Ed Crockett. The team is overseen by Andrew Allen, head of global property research and strategy.
ETF Securities has listed two new broad commodity Exchange Traded Funds (ETFs) on the London Stock Exchange, tracking two indices from the Bloomberg Commodity Index family. The two new ETFs are designed for investors who want "all-in-one" access to commodities for growth and diversification, but who wish to avoid the challenges of navigating several sub-sectors themselves via futures, said the firm. ETFS All Commodities GO UCITS ETF tracks an index of front month commodity futures and may be used as a tactical play, a core diversifier or part of an allocation to an alternatives portfolio. ETFS Longer Dated All Commodities Ex-Agriculture And Livestock GO UCITS ETF tracks an index of longer-dated commodity futures on energy and metals and is likely to appeal to investors seeking broad commodity exposure without an allocation to food-related commodities. The total cost (including management fee and portfolio transaction costs) is 38 basis points per annum.
Puma Investments' AIM IHT Portfolio Service has reached its third year. Over its three year history, it has delivered a 67.4 percent return, outperforming the FTSE AIM All Share Index over the same period by 44.4 percent, which translates to a net annualised return of +18.7 percent. The AIM IHT Service is a discretionary portfolio service that seeks to mitigate inheritance tax by investing in a carefully selected portfolio of Alternative Investment Market (AIM) shares. The service focuses on high quality companies with strong margins, good returns and a track record of cash generation. Advisers can now also access Puma AIM IHT Service through wrap platforms such as Ascentric, Standard Life and Transact, as well as directly with Puma.