The Fund aims to provide a return, from a combination of income and capital growth over the long term.
Performance target: To outperform the Euro Short-Term Rate by at least 2.5% per annum, before the deduction of charges, over any 5 year period.
The Fund invests in bonds of any quality, including high yield (non-investment grade) bonds and distressed debt, of governments, companies or any other type of issuer in any country. The Fund may invest up to 30% of its assets in asset-backed and mortgage-backed securities (ABS/MBS), including up to 10% of which may be high yield (non-investment grade, equivalent to BB+ rated or lower). 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 makes extensive use of 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 may also invest in other assets including contingent convertible bonds (CoCos), loans, cash and money market instruments.
The Fund is actively managed with reference to the Euro Short-Term Rate, 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.
This website is for promotional purposes and does not qualify as an investment recommendation.
ABOUT THIS FUND
- A benchmark-agnostic bond fund targeting positive total returns through a risk-managed approach
- A disciplined risk-budgeting approach to deliver returns from diversified sources while maintaining moderate volatility
- Invests in a broad range of fixed income and derivative instruments, including government and corporate bonds, secured debt, and asset-backed securities