Colchester Global Bond Fund GBP Unhedged Accumulation Class I Shares

Why we like the fund: This fund lends money to governments globally. It mostly lends to developed market governments within the US, Europe, UK, Japan and Australasia, but will also lend smaller amounts to governments in emerging markets. These investments tend to be low risk (since governments are the most reliable creditors) and income received will subsequently be quite low, although this does not mean that the fund will always avoid losses if interest rates go up. Colchester is a specialist, almost entirely focused on lending money to governments. It is also an independent firm, majority-owned and controlled by its employees. How to use the fund: The fund invests in low-yielding and low-risk investments. Quite often the sort of investments it makes are most sought after by investors when there is a global crisis or fear of a recession. That is because investors seek safe haven assets at these times. This fund will usually be a helpful insurance policy against such events and can be used as a defensive component in a wider portfolio.