Agility + Acumen

We’re independent. We’re not owned by a bank. We’re not owned by an

insurance company. When we started three years ago we deliberately designed a

nimble company to bring to advisers and investors a straightforward series of funds

managed by individuals who we believe are masters of their craft.

A good fund manager, like any good craftsman is hard to find. Once found, City

Financial harnesses the proven skills of these individuals. Without legacy or

conflict of interests and without the distractions that a big company brings, the

managers are empowered to focus on creating something remarkable for our

investors and their advisers.

Strategic Gilt Fund in Investment Week

Ian Williams warns Investment Week that, “as the inflationary consequences of quantitative easing kick in, the yield curve will spike and investors holding ultra longer-dated government bonds and longer-dated corporate bonds stand to lose sizeable money.”

Market minute with Ian Williams

Writing to advisers, Ian Williams, manager of the City Financial Strategic Gilt Fund, tries to explain how they might help keep their clients on the right side of the inflation versus deflation debate. While the cleverest and most informed voices in the market are at odds with one another and advisers continue to confront today’s challenges, they can lean on the expertise and focused attention of a proven team of Gilt market investment professionals, equipped with the tools to adjust to the changing market environment.

City Financial Strategic Gilt Fund in The Telegraph

City Financial Strategic Gilt Fund manager, Ian Williams, tells The Telegraph that while “deflation is just a blip,” soon “we will find ourselves back on the inflationary treadmill.” The article highlights the possible advantages to investors of gaining exposure to index-linked gilts through gilt funds.

City Financial Strategic Gilt Fund chosen as a Professional Adviser Hot 100 Fund

The City Financial Strategic Gilt Fund has been ranked 13th in the Professional Adviser list of 100 Hot Funds because of its consistently high performance. The Strategic Gilt Fund is an IMA UK Gilt sector leader, having returned more than 10% in 2008 and continues to lead the sector in 2009. (Source: Lipper: 01.01.2008 – 23.02.2009)

Ian Williams highlights core issue for gilt market in an appearance on Bloomberg TV

Responding to the first failed gilt auction in nearly seven years, Strategic Gilt Fund manager Ian Williams explains that this particular failed auction ought to be viewed more as a reflection of the market’s sentiment regarding longer-dated gilts, rather than to all gilts.

After the announcement of quantitative easing, the market may have become overly concerned with the logistics of implementation, and temporarily lost sight of the long-term implications of such policies. The failure of an auction of longer-dated gilts represents a recognition on the part of the market of the inflationary pressure that quantitative easing could spur down the road.

Deflation is now yesterday’s story, and quantitative easing simply the authorities’ response to it. The core issue remains the sheer scale of the government’s borrowing requirement and the identification of a proper balance between gilt issuance and quantitative easing.

Strategic Gilt fund manager warns of inflation down the road

Speaking to Bloomberg TV, City Financial Strategic Gilt Fund manager Ian Williams warns that the policies announced by the Bank of England on March 5th risk inflation in the medium to long-term.

The focus of this new strategy involves the Bank of England buying up approximately £75 billion worth of gilts. This in turn paves the way for the Treasury to flood the market with new gilt issuances. Williams explains that though this may stem deflation now, the swollen money supply will create substantial inflationary pressure once the UK is on the road to economic recovery.

Williams highlights the long-dated segment of the yield curve as carrying the most risk of devaluation in the future. To help limit the exposure to inflation of the Strategic Gilt fund Williams is holding index-linked gilts.


"No time for a novice"

The manager of the City Financial Strategic Gilt Fund explains that the recently announced policy of quantitative easing amounts to little more than the modern day equivalent of printing money.

"Gilt fund spots huge low risk opportunity," says IC Advantage

Moira O'Neill covering the City Financial Gilt Fund, outlines three "bull points":
• potential higher reward than corporate bonds,
• low risk protection from inflation
• experienced manager

  • Read the article (subscription required)

City Financial Strategic Gilt Fund manager writing in The Telegraph

Ian Williams writes in The Telegraph that the recent Bank of England action “is the modern day equivalent of printing money and has longer-term inflationary implications.”

Strategic Gilt Fund in The Sunday Times

Darius McDermott of Chelsea Financial Services tells The Times that, “…in an environment of rock-bottom cash rates, gilts present a lower risk option for cautious investors” and he likes the City Financial Strategic Gilt Fund.

Fund buys index-linked gilts

City Financial "has bought inflation-protected bonds for the first time for its top-performing U.K. gilt fund, betting the government’s economic stimulus plan will fuel growth and consumer-price increases," says Bloomberg News.

Strategic Gilt Fund in Investment Week

"Wise move into index-linked government debt separates Strategic Gilt from its peers," says Hysni Kaso in Investment Week.

The end of an era? We are now in uncharted territory as regards the state of the global economy

Ken Forman, in his latest quarterly bulletin, covers the events which have unfolded with breathtaking speed in recent months.

John Husselbee's market minute

What many have known to be true for some time is now official, the UK is in recession. We hope that these comments by John Husselbee, fund manager of the City Financial MultiManager range, are helpful in stepping back and taking stock.

Top tips for saving in a slump

The Times highlights the City Financial Strategic Gilt Fund in their article "Top tips for saving in a slump."

Preservation is now as important as performance

Arguably the world is in one of its greatest periods of financial turmoil. Likely the greatest upheaval of a generation. Stocks, bonds, currencies and real assets like houses, property and oil have all seen high levels of price instability.

Is the storm starting? Are we in its eye? Or have we passed through? In times like this, it makes sense for investors to step back and take stock.

"What in the world..." is a new, simple and concise City Financial sales aid to help make sense of the financial events unfolding around us. We are committed to providing helpful and timely materials for advisers to discuss with their clients.