Trustnet Magazine Issue 19 June 2016 | Page 8

YOUR PORTFOLIO / PORTFOLIO CONSTRUCTION / GOALKEEPER Royal London Short Duration Global High Yield Bond RYAN HUGHES: “By focusing on the short duration part of the market, this fund significantly reduces the risk of default in the high yield area. A large majority of the holdings mature in the next six months, which gives an element of certainty and importantly also greatly reduces transaction costs, therefore keeping the ongoing charges figure very low. By targeting three month LIBOR +2% over rolling three-year periods, the fund fulfils its role as goalkeeper perfectly.” CENTRE-BACKS tegic Jupiter Stra Bond l Ariel Bezale DREAM TEAM Like the perfect football team, the ideal portfolio will contain a blend of styles that complement one another. Adam Lewis picks his fantasy 1st XI W ith the dust having barely settled on Leicester City’s amazing Premier League triumph, all the attention has quickly turned to France, where the 24 finest teams on the continent are battling it out in the European Championship. After a disastrous World Cup campaign, optimism is oddly high in the England camp. Many fans are clinging to the hope that if Leicester can do it, why 6 can’t we? Well, Leicester didn’t have any penalty shoot- outs to deal with, but any summer football tournament always brings with it an opportunity to marry the nation’s favourite game with fund management. Claudio Ranieri showed you don’t need a team of superstars to win, so we tasked Liontrust’s John Husselbee, Apollo’s Ryan Hughes and LGIM’s Justin Onuekwusi to create a fantasy XI of funds, based around a dynamic 4-4-3 formation. trustnetdirect.com Lisa Colem an FULL-BACKS JOHN HUSSELBEE: “The key to long-term capital appreciation is both the ability and flexibility to defend the downside in financial markets. The primary role of a strategic bond fund is to preserve capital, but attack the market when there is an opportunity to make money. TwentyFour is an investment boutique that has built a strong reputation for bond investing and the Dynamic Bond fund is its flagship, offering a cash-plus return from both defensive and attacking plays.” RYAN HUGHES: “The duo at Henderson (Ben Wallace and Luke Newman) have an excellent track record of navigating their way through all kinds of different markets, whether the environment is defensive or more attacking. These are ideal characteristics for a full-back. The long/short approach has proven to be adept at smoothing the volatile nature of the UK market and is well placed to tackle the macro-economic challenges that face the UK economy.” trustnetdirect.com Azhar Hussain JPM Global Corporate Bo nd JUSTIN ONUEKWUSI: “Ultimately you want your centre-backs to defend, but you have to find the right combination of someone willing to take risks and bring the ball out of defence and someone solid and dependable. What better combination then than the Jupiter Strategic Bond fund, managed by Ariel Bezalel, and the JPM Global Corporate Bond fund, managed by a team headed up by Lisa Coleman in New York. Ariel’s fund currently has a defensive tilt, yet is willing to take individual opportunities, while the JPM fund adds core credit exposure, adding sturdiness to the defence for when the going gets tough.” TwentyFour Dynamic Bond Hend e Absol rson UK ute R eturn Eoin Walsh Ben W allace & Luk e New man 7