Voth Nixon Group has announced today the launch of the Balanced Short Term Bond Fund for its clients, which aims to deliver increased returns in accordance with minimal volatility in primary value and liquidity.
The fund provides a traditional investment alternative for clients which seek higher returns as opposed to money market funds, and reduced fluctuations which are fairly common for short-term bond funds, thus filling the risk vs. return gap that would otherwise hinder its general performance.
The Balanced Short-Term Bond Fund exposes itself to a slightly higher level of credit and interest rate risk in pursuit of increased return potential. While performing differently than conventional money market funds yet still similar to regular bond funds, its NAV can either increase or decrease according to interest rate modifications, with the capacity for greater gains, and a fund management focused on risk mitigation in the event of increasing rates.
The fund seeks to invest in diversified portfolios of short-term corporate-level securities which will also include mortgage and asset-backed securities, with an estimated average maturity of 1 year and a wider credit spectrum beginning from BBB rated securities or better. Comparatively, conventional money market funds generally have an average maturity of 6 months or less and are usually AA rated.
With an estimated NER (net expense ratio) of 0.40% and a minimum initial investment of $2,000 the fund is managed by Mr. Ulrich Weber, who also manages the VNX Group Preferential Value Fund, with the assistance of newly appointed senior advisor, Mr. Julian Wu-Shen.
“In an effort to satisfy client demands for opportunities that deliver faster rewards, Voth Nixon Group has designed the Balanced Short-Term Bond Fund with the goal of providing an alternative investment strategy that can offer the same flexibility as money market products while permitting check writing capabilities and no restrictions in terms of trading” said Mr. Julian Wu-Shen.
About Voth Nixon Group
VOTH NIXON GROUP is a global asset administration group, managing capital for both institutional and retail investors across the world. Our aim is to provide solid fund performance across various asset types in which we know we have a viable competitive edge. At VOTH NIXON GROUP your goals are important to us. We understand the financial challenges that make it difficult to achieve your targets, and we’re qualified to provide the assistance you need. We believe your financial progress, regardless of your present situation or economic condition is achievable.
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