A dynamically managed, diversified, global credit solution seeking an attractive yield in today's low-yielding markets
Reasons to invest
- A truly dynamic portfolio that can evolve and adapt to market conditions
- An unconstrained, bottom-up investment approach, targeting the most efficient allocation of capital across the global credit universe
- Defensive when it matters, seeking to protect investors’ capital in more challenging times
- Could be used as a complement to existing strategic bond or corporate bond funds
Objective
Investment objective summary
- The Fund targets a positive return of Overnight SONIA +4% before fees over a full credit cycle (which may be measured over 5-year rolling periods).
- The Fund invests primarily (at least two-thirds) in bonds (or similar debt-based assets) issued by borrowers around the world (including but not limited to emerging markets) and in related derivatives (financial contracts whose value is linked to the price of such bonds (or similar debt-based assets)).
- The performance target has been chosen as we believe it sets a realistic expectation of the Fund’s long-term outperformance of the return an investor can expect, based on the principal asset types available for investment and the current market environment. Fund performance can also be compared to the IA sector average. Many funds sold in the UK are grouped into sectors by the Investment Association (the trade body that represents UK investment managers), to facilitate comparison between funds with broadly similar characteristics.
Performance & commentary
Portfolio & Holdings
Date as of 31/10/2024
Specific fund risks
There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss.
The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss.
The Fund may invest more than 35% of its assets in securities issued or guaranteed by a permitted sovereign entity, as defined in the definitions section of the Fund’s prospectus.
The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise.
There may be insufficient buyers or sellers of particular investments giving rise to delays in trading and being able to make settlements, and/or large fluctuations in value. This may lead to larger financial losses than might be anticipated.
