Stratton Street has launched two new investment grade bond funds as part of plans to expand its Ucits-compliant fund range, Citywire Selector has learned.
The Stratton Street Next Generation Bond fund was launched on 16 December and forms the basis of the firm’s global investment grade capabilities.
The fund will hold predominately investment grade paper with a minimum of 80% invested in this quality of bonds. This is while having the ability to take up to 20% high-yield exposure should market conditions warrant.
The team will allow up to 25% of the fund to be exposed to currency in undervalued positive net foreign asset (NFA) currencies.
The team will limit the currency exposure in order for it to complement credit returns, rather than dominate portfolio performance and volatility.
Last month the firm also launched the Stratton Street NFA Global Bond fund, which will invest in the most creditworthy countries in the world, by the firm’s proprietary NFA analysis.
The fund launched on 30 November and its assets under management currently sit at $61 million.
Both funds will be managed by the fixed income team, headed up by partner and CIO Andrew Seaman, and partner and fund manager Mark Johns. The pair have over 20 years’ experience and have worked together since 1997.
The duo will be joined by the firm’s head of fixed income and currencies, Frederick Coldham, alongside Alison Smith, Graeme Brewer, Parita Ghalay and James Edwards.
Both strategies will be initially registered in Luxembourg, the UK, Germany, Austria, Switzerland and Singapore, with more registrations following on client demand.