10 August 2011

Investec Asset Management launches Global Defensive Bond Fund

In the current environment of low yields and with the risk of rising interest rates in the future, generating attractive returns from traditional bond funds is likely to become more challenging. Given this prevailing environment and outlook, Investec Asset Management today announced the launch of the Investec Global Defensive Bond Fund, a conservatively run strategic bond fund. The flexibility of the Fund’s mandate is designed to provide good returns in this environment, with low to moderate volatility.

Given the scope of the fixed income asset class with returns varying significantly across the sector, the UCITS fund with extended investment powers has the flexibility to invest in any fixed income opportunity globally. The Fund is also able to short-sell bonds and currencies that the team views as unattractive, providing greater opportunities to generate returns, greater scope to diversify and control risk, and the flexibility to suit any investment environment. In this way it will look to target lower volatility relative to a typical global fixed income fund.
The Fund is run by portfolio manager John Stopford, Investec Asset Management's co-Head of Fixed Income, supported by the Firm’s Fixed Income & Currency team. It uses the team’s established ‘Compelling Forces’ investment philosophy, blending bottom-up due diligence with a top-down strategic approach to create well a diversified, high conviction portfolio across the global opportunity set, including emerging market and currency opportunities. This process aims to ensure exposure is aligned to the evolving investment environment.
Stopford says, “In our view, yields are more likely to rise than fall in the future, so for investors who have traditionally allocated to bond funds positioned to benefit from a falling yield environment, achieving returns is likely to be harder. In this fund, we are looking to hold assets that suit the economic environment and that offer value, avoiding or shorting those that do not. Having a more defensive starting point and flexibility should enable us to deliver returns in differing market environments.”

The Fund is domiciled in Luxembourg, and the minimum investment is $3000.


www.investecassetmanagement.com
ENDS


Notes to Editors

Investec Asset Management is a specialist investment manager, providing a premier range of products to institutional and individual investors. Established in 1991, the firm has been built from start-up into an international business managing in excess of US $94bn* on behalf of third party clients. We have grown from domestic roots in the UK and Southern Africa to a position where we proudly serve a growing international client base from the Americas, Europe, Asia, Australia, the Middle East and Africa. We employ 125 investment professionals. The firm seeks to create a profitable partnership between clients, shareholders and employees, and to exceed expectations for both client service and performance. Investec Asset Management is an independently managed subsidiary of Investec Group.
*As at end March 2011.

For further information, please contact:

Vian Sharif                    + 44 207 597 1834 or +44 7826 911 669
Investec Asset Management     

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions. All of the views expressed about the markets, securities or companies in this press comment accurately reflect the personal views of the individual fund manager (or team) named. While opinions stated are honestly held, they are not guarantees and should not be relied on. Investec Asset Management in the normal course of its activities as an international investment manager may already hold or intend to purchase or sell the stocks mentioned on behalf of its clients. The information or opinions provided should not be taken as specific advice on the merits of any investment decision. Telephone calls may be recorded for training and quality assurance purposes.