The Fund aims to provide a return, from a combination of income and capital growth over the long term.
Performance target: To outperform the JP Morgan Corporate Emerging Market Bond Index (CEMBI) Broad Diversified by 1.5% per annum, before the deduction of charges, over any 5 year period.
The Fund invests at least 70% of its assets in bonds of any quality, including high yield (non-investment grade) bonds, asset-backed and mortgage-backed securities, and distressed debt, in emerging markets. The Fund may invest up to 20% of its net assets in contingent convertible bonds (CoCos). The Fund may invest up to 20% of its assets in China onshore bonds traded through Bond Connect.
Where investments are made in assets in currencies other than the base currency of the Fund, the Fund will seek to hedge those assets back to the base currency to remove the risk of currency exchange rate movements.
The Fund may also invest in other assets including cash and money market instruments.
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 the JP Morgan Corporate Emerging Market Bond Index (CEMBI) Broad Diversified, which is broadly representative of the bonds in which it may invest, as this forms the basis of the Fund's performance target. The investment manager has discretion to choose investments for the Fund with weightings different to the index or not in the index, but at times the Fund may hold investments similar to the index.
This website is for promotional purposes and does not qualify as an investment recommendation.
ABOUT THIS FUND
- Seeks total return in excess of the benchmark by investing at least 70% in a diversified portfolio of corporate or other emerging market bonds and derivatives
- Investment ideas generated from a bottom-up credit approach informed by a top-down sovereign and geopolitical view
- Potential to deliver an attractive risk premium due to “emerging market” label despite investment-grade characteristics of much of the asset class