Citywire Selection verdict: This fund usually has around 80% allocated to bonds and nearly 20% exposure to equities. Experienced duo Paul Read and Paul Causer are responsible for the bond element while the equity portion is run by Ciaran Mallon.
Causer and Read continue to see opportunity in the subordinated debt of high quality European banks with around a third of the fund allocated to bank bonds. Whilst the financial sector is a volatile area, the duo think it provides a compelling balance of risk and reward. The equity position gives exposure to solid blue chip equities such Imperial Tobacco and British American Tobacco, which help the fund to provide a yield of 5.7%. Long term returns have also been strong, with a total return of 100.8% over seven years, the trio’s strategy has proved a great pick.