Quarterly update
Watch the investment team recap this quarter.
(Note: As at April 2026).
Investment objective
The Fund aims to provide a return from a combination of income and capital growth over the long term by investing in an actively managed portfolio of AAA to BBB- rated collateralised loan obligations (CLOs). The Fund is actively managed with reference to the J. P. Morgan US CLOIE BBB Index, which is broadly representative of the bonds in which it may invest. The Investment Manager (IM) has discretion to choose investments for the Fund with weightings different to the index or not in the index.
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The Fund will invest at least 80% of its Net Asset Value (NAV) in eligible CLOs of any maturity that are rated AAA to BBB- (or equivalent) at the time of purchase and either European or US CLOs. The Fund will seek to maximise BBB- to BBB+ rated (or equivalent) exposure where reasonably possible, while being permitted to tactically invest more senior tranches. In case securities in the portfolio are downgraded below a rating of BBB- (or equivalent), the IM will seek to sell the relevant securities as soon as reasonably possible, provided that it determines that it is in the best interests of investors. The Fund may invest up to 5% of its NAV in a single CLO security; 15% of its NAV in CLOs managed by an individual manager; Non-USD denominated securities hedged back to USD; 10% of its NAV in fixed rate securities that are hedged back to floating rate; The Fund will not invest more than 10% of its NAV in eligible collective investment schemes. Derivatives may be used for the purposes of hedging/risk reduction specifically interest and FX rates. For treasury management and/or defensive purposes, the Fund may invest in cash and Money Market Instruments. The Fund’s major part of fx exposure is hedged to Base Currency. The Fund may hold up to 20% in its NAV in ancillary liquid assets as described in greater detail under paragraph 10.4 of the section entitled "Investment Restrictions".
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The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested.
Potential investors must read the prospectus, and where relevant, the key investor information document before investing.
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About this fund
The Fund aims to provide a return from a combination of income and capital growth over the long term by investing in an actively managed portfolio of AAA to BBB-rated collateralised loan obligations (CLOs).
Why invest in this fund
Yield and diversification
Comparable yields to high yield corporate credit but with investment grade ratings and lower idiosyncratic default risk.
Risk and volatility
Comparable to high yield bonds with periods of both higher and and lower drawdowns while benefiting from rapid price recovery.
Low correlation characteristics
Reduced correlation to other fixed income instruments.
Portfolio characteristics
(As of 01/05/2026)
USD Acc.
| Number of holdings: | 35 |
| Average CLO Rating: | BBB |
| Indicative USD current yield: | 7.10% |
| Indicative USD yield to maturity: | 7.09% |
| Effective interest rate duration (years): | 0.35 |
| Weighted average life (years): | 7.03 |
| Spread to maturity: | 3.15% |
GBP-Hedged Dist.
| Number of holdings: | 35 |
| Average CLO Rating: | BBB |
| Indicative GBP current yield: | 7.19% |
| Indicative GBP yield to maturity: | 7.18% |
| Effective interest rate duration (years): | 0.35 |
| Weighted average life (years): | 7.03 |
| Spread to maturity: | 3.15% |
EUR-Hedged Acc.
| Number of holdings: | 35 |
| Average CLO Rating: | BBB |
| Indicative EUR current yield: | 5.44% |
| Indicative EUR yield to maturity: | 5.43% |
| Effective interest rate duration (years): | 0.35 |
| Weighted average life (years): | 7.03 |
| Spread to maturity: | 3.15% |
