Asset-Backed Securities Fund

A high quality, conservatively managed fixed income solution aiming to provide downside resilience over cycles

ISIN
GB00BLKQL906

NAV
GBP 100.07p
As of 28/10/20

1-Day Change
GBP 0.00p (0.00%)
As of 28/10/20


Morningstar ratings are based on the representative share class of this fund and are dated to the last month-end upon availability from Morningstar.

Overview

INVESTMENT OBJECTIVE

The Fund aims to provide a return from a combination of income and some capital growth over the long term.
Performance target: To outperform SONIA by 1.5% per annum, before the deduction of charges, over any 5 year period.

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The Fund invests at least 70% of its assets in Asset-Backed Securities (ABS).The Fund also holds a minimum of 80% of its assets in investment grade securities (rated BBB- or higher by at least one independent credit rating agency) and maintains at least 60% of its investments in European assets.
The Fund may also hold other assets including other types of bonds and floating rate notes of any quality, from any issuer, certificates of deposit, bank term deposits and other money market investments (including cash funds), covered bonds, US agency mortgage-backed securities (that will not be deemed to form part of the minimum70%ABSinvestment), Real Estate Investment Trusts (REITs) and other secured finance investments.
The investment manager may use derivatives (complex financial instruments), including total return swaps, with the aim of making investment gains in line with the Fund’s objective, to reduce risk or to manage the Fund more efficiently.
The Fund is actively managed with reference to SONIA, as this forms the basis of the Fund’s performance target. The investment manager has complete discretion to choose investments for the Fund and is not constrained by a benchmark.

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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.
This website is for promotional purposes and does not qualify as an investment recommendation.

ABOUT THIS FUND

  • Strong bottom-up fundamental analysis aiming to identify opportunities offering secure income and downside resilience over cycles
  • Invests for the long-term while actively monitoring for early signs of potential adverse performance trends
  • The investment team’s broad experience in investing, originating, structuring and rating structured debt spans across multiple sectors and the entire ratings spectrum
Past performance is not a guide to future performance. 
 

PORTFOLIO MANAGEMENT

Colin Fleury

Head of Secured Credit | Portfolio Manager

Industry since 1986. Joined Firm in 2007.

Ian Bettney

Portfolio Manager

Industry since 2000. Joined Firm in 2005.

Denis Struc

Portfolio Manager

Industry since 2005. Joined Firm in 2010.

Performance

Due to financial regulations we are only permitted to show fund performance over a minimum period of one year.
FEE INFORMATION
Annual Charge 0.30%
Ongoing Charge
(As of 31/12/19)
0.00%

Documents

  • ​The value of the Funds and the income from them is not guaranteed and may fall as well as rise. You may get back less than you originally invested.
  • ​Past performance is not a guide to future performance.
  • Third party data is believed to be reliable, but its completeness and accuracy is not guaranteed.
  • An issuer of a bond (or money market instrument) may become unable or unwilling to pay interest or repay capital to the Fund. If this happens or the market perceives this may happen, the value of the bond will fall.
  • When interest rates rise (or fall), the prices of different securities will be affected differently. In particular, bond values generally fall when interest rates rise. This risk is generally greater the longer the maturity of a bond investment.
  • Callable debt securities, such as some asset-backed or mortgage-backed securities (ABS/MBS), give issuers the right to repay capital before the maturity date or to extend the maturity. Issuers may exercise these rights when favourable to them and as a result the value of the fund may be impacted.
  • The Fund may use derivatives towards the aim of achieving its investment objective. This can result in 'leverage', which can magnify an investment outcome and gains or losses to the Fund may be greater than the cost of the derivative. Derivatives also introduce other risks, in particular, that a derivative counterparty may not meet its contractual obligations.
  • If the Fund holds assets in currencies other than the base currency of the Fund or you invest in a share class of a different currency to the Fund (unless 'hedged'), the value of your investment may be impacted by changes in exchange rates.
  • When the Fund, or a currency hedged share class of the Fund (with ‘Hedged’ in its name), seeks to mitigate (hedge) exchange rate movements of a currency relative to the Fund’s base currency, the hedging strategy itself may create a positive or negative impact to the value of the Fund due to differences in short-term interest rates between the currencies.
  • Securities within the Fund could become hard to value or to sell at a desired time and price, especially in extreme market conditions when asset prices may be falling, increasing the risk of investment losses.
  • The Fund could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Fund.
  • The Fund invests in Asset-Backed Securities (ABS) and other forms of securitised investments, which may be subject to greater credit/default, liquidity, interest rate and prepayment and extension risks, compared to other investments such as government or corporate issued bonds and this may negatively impact the realised return on investment in the securities.
  • Funds incur costs as a necessary part of buying and selling the underlying investments, these are otherwise known as portfolio transaction costs, and include charges such as broker commission and Stamp Duty.
  • For detailed product information including the risks associated with investing please read the relevant Prospectus or Annual Report.
  • Before investing in any of our funds you should satisfy yourself as to the suitability and the risks involved.
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