“What’s keeping us most busy is keeping up with the various political news, not just the US election,” Mr Shannon said.
“It’s arguably the most important [issue] in the world, but almost all the outcomes are reasonably benign. It won’t make much difference for the bonds in our portfolio.
“In Europe we have got events, including trouble forming a government in Spain [now resolved], the Italian referendum and the German elections. The financial space is one of the areas hardest hit by politicians.”
The TwentyFour Corporate Bond fund has returned 8.9 per cent over one year, compared with an average of 9.5 per cent by its IA Sterling Corporate Bond peer group, data from FE Analytics shows.
Ratings breakdown of Corporate Bond fund
What does BoE mean by eligible bonds?
While the Bank of England has a range of debt to choose from, its bond-buying programme comes with multiple caveats.
To be eligible, bonds must be rated as investment grade, have a minimum amount in issue of £100m and a minimum residual maturity of 12 months.
The central bank said it would also consider the issuer itself, noting: “The bank will purchase bonds issued by companies that make a material contribution to economic activity in the UK.
“Companies with significant employment, or with their headquarters, in the UK will normally be regarded as meeting this requirement. The bank will also consider whether the firm generates significant revenues in the UK, serves a large number of customers, or has a number of operating sites in the UK.”
One notable exemption from the programme is corporate bonds issued by banks, building societies, insurance companies, or other financial sector entities regulated by the BoE or the FCA.
Bonds with complex or non-standard structures are also ineligible, along with convertible bonds and corporate bonds with “callable features”.
