PSigma Investment Management is to launch its first retail-focused multi-manager fund this month with an emphasis on opportunities in the bond markets.
Manager and director of investment strategy Tom Becket said he is expecting global interest rate cuts, benefitting the credit markets.
“It is a difficult world to invest in at the moment but it is also creating decent opportunities and we are seeing this in the bond markets, especially on an international scale.
“We are expecting interest rates to drop hard and fast around the world as central banks’ focus becomes less on inflation and more on growth and the threat of deflation. We expect to see rates get down to 3.5% in the UK and 3% in Europe next year and yields will fall more quickly than people are pencilling in.”
PSigma Balanced Managed Fund of Funds will launch on 22 September and replicate the Wealth Creation vehicle the group already runs, which is only available to private clients.
At launch, the fund is expected to hold 40% in equities and 25% in bonds and credit with a focus on international markets.
“Global funds are the way forward,” added Becket.
