Short Term Bond

TwentyFour Asset Management

TwentyFour’s Short Term Bond strategy is a genuinely long-only, unlevered bond strategy designed specifically to target a modest level of volatility. The portfolios are built predominantly from investment grade and fixed rate bonds selected using our proprietary stock-picking database Observatory which seeks to identify bonds with the greatest potential for risk-adjusted excess returns. The will also be managed against a reference index or with a defined target return. The team’s high conviction approach is heavily based on managing risk and trying to limit volatility, while targeting relative value by geography, sector and security to help deliver alpha for the portfolios.

Portfolio Management

Global Short Term Bond Composite

Data as at 30.04.2020

Cumulative Performance

QTD YTD 1 year 3 years 5 years Since Inception 3 years annualized 5 years annualized Since inception annualized
-1.74% -1.18% 2.40% 10.02% N/A 19.42% 3.23% N/A 3.87%

Discrete Performance

2016 2017 2018 2019
5.07% 6.16% 0.76% 7.00%

Source: TwentyFour. Performance figures shown are of the GBP performance adjusted to take into account the impact of share class FX hedging from GBP to USD. Returns are presented on a mid-to-mid basis inclusive of net reinvested income and net of all expenses. Past performance is not a reliable indicator of future performance. The performance data do not take account of the commissions and costs incurred on issue and redemption. The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. Composite performance is calculated using the weighted average daily performance of similar portfolios within the Composite, since the earliest inception date. All portfolios within the Composite are managed by the same team.

Disclaimer

Global Short Term Bond Composite

 
Year Composite Gross Return (%) Composite Net Return(%) Custom Benchmark Return (%) Composite 3-Yr st Dev (%) Benchmark 3-Yr st Dev (%) Number of Portfolios Internal Dispersion (%) Composite Assets ($M) Total GIPS Assets (£M) Total GIPS Assets + Entity Assets (£M)
2015 0.69 0.61 na na na <5 na 20 3957 5483
2016 5.25 4.99 na na na <5 na 279 5153 7811
2017 5.52 5.25 na na na <5 na 1091 8267 11273
2018 -0.58 -0.83 na na na <5 na 1544 11070 13957
Compliance Statement

TwentyFour Asset Management claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. The Firm has been independently verified for the periods 1 January, 2011 through 31 December, 2018. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

Definition of the Firm

TwentyFour Asset Management is defined as TwentyFour Asset Management LLP and all subsidiaries or affiliates and is a fixed income asset management firm established in 2008 and regulated by the UK Financial Conduct Authority. The firm is defined to include assets managed across all global offices and includes both the institutional and wholesale lines of business.

Policies

The Firm’s policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

Composite Description

The Global Short Term Bond Composite invests primarily in global investment grade fixed-income securities and derivatives of any maturity/duration and any currency, though focussed on an overall short-term maturity. The Composite was created in January 2020.

Benchmark

No benchmark is presented because the composite’s strategy is unique and we believe that no benchmark that reflects this strategy exists.

Fees

Returns are presented Gross and Net of the actual Annual Management Charge (AMC). The highest fee schedule for the composite is 0.55% per annum.

List of Composites

A list of all composite descriptions is available upon request.

Statistics

The number of portfolios and internal dispersion are not shown because there were five or fewer portfolios for all periods presented. The three-year annualized ex-post standard deviation of the composite is not presented because 36 monthly composite returns are not available.

Disclaimer

Past performance does not guarantee future results. Performance is shown inclusive of net reinvested income. The value of invested monies can increase or decrease and there is no guarantee that all or part of your invested capital can be returned. The performance data do not take account of the commissions and costs incurred on issue and redemption.

Insights

TwentyFour Asset Management
 2019-08-14_WP_uk-abs-braced-for-a-boris-brexit-teaser.jpg
White Paper

UK ABS: Braced For a Boris Brexit

With the election of Boris Johnson as leader of the Conservative Party, and subsequently as the next UK prime minister, the chances of a ‘no-deal’ Brexit took a decisive tick upwards. We believe the UK ABS market will be an effective defensive holding against the deep uncertainty around the Brexit outcome, and one which could also offer some material spread upside given the premium currently being priced into UK assets.

Read more

TwentyFour Asset Management
2019-08-14_wp_five-things-to-consider-abs-teaser
White Paper

Five things to consider when investing in ABS

Despite boasting some of the lowest default rates across the global fixed income market, as well as higher yields and greater investor protections than vanilla corporate bonds of the same rating, Asset-Backed Securities (ABS) remains an under-utilised market for many pension funds. TwentyFour partner Ben Hayward outlines five things every investor should keep in mind when looking at this compelling asset class.

Read more