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Charteris launches strategic bond fund for sector‐defensive investors

The top‐performing London boutique warns that UK gilts are “grotesquely overvalued” and says the new fund’s primary objective is to preserve capital while providing some income


Britain’s best performing fund manager of 2016 today announces the launch of a strategic bond fund for investors who want to mitigate the impact of a possible long‐term bear market in the fixed income sector.

The new fund has been created by Charteris Treasury Portfolio Managers Ltd, whose gold and precious metals fund clinched the top spot from approximately 4,000 UK funds across all sectors categorised by the Investment Association last year.*

The HC Charteris Strategic Bond fund is aimed at retail and institutional investors with an investment horizon of at least three years and who wish to protect their capital as well as generate some income. It will be lead‐managed by Ian Williams, chairman and chief investment officer of Charteris, and the firm’s in‐house investment team.

“We strongly believe that bond markets have peaked and are now grotesquely overvalued following a 40‐year bull market that has driven UK gilt yields to around a 300‐year low. As a result, there is a crying need for defensive strategies which the HC Charteris Strategic Bond Fund aims to address,” says Williams, a bond market veteran.

Using fundamental and long‐term cycle analysis, the new fund will primarily focus on investing in floating rate notes (FRNs), ultra‐short duration British government bonds, and up to a maximum of 20% in high‐yielding blue‐chip UK equities.

The new fund is the first Charteris‐branded bond product launched in the London‐based boutique’s 35‐year history, and takes its total fund portfolio to five. The move also triggers Williams’ return to a sector in which he has a long track record as the UK’s top performing gilt fund manager in 2007, 2009 and 2013.

Minimum investment in the bond fund is £1,000 during the offer period, which closes on 31 October 2017. The fund, structured as a OEIC, has four classes of shares with an initial price of 100p each. Following the launch period, the fund will be priced daily and tradable via stockbrokers and other intermediaries.

Host Capital is the fund’s authorised corporate director. Citibank Europe is the depositary and custodian.


Media enquiries:
Ian Williams, Chairman & CIO, 0207 220 9780
Neil Thapar, Head of PR, 0207 220 9780, 07876455323 (m)



*The HC Charteris Gold & Precious Metals Fund (previously named Way Charteris Gold & Precious Metals Fund) delivered a 133.9% gain in calendar 2016 and was No 1 ranked across all sectors designated by the Investment Association.

Other Charteris Treasury funds are:

HC Charteris Premium Income Fund – Top quartile performance in IA equity income sector in calendar 2007, 2008, 2010, 2016 & 2017 (Year to date).

HC Charteris Global Macro Fund – Launched in Q1 2015. Top decile performance in calendar 2016 in IA global sector. Top fund in the Citywire mixed assets/ absolute return sector in calendar 2016.

HC Charteris Property Fund – Top quartile performance in IA property sector in calendar 2015 and 2017 (YTD).