The fund aims to provide a combination of capital growth and income to deliver a return based on exposure to optimal income streams in investment markets.
Investment policy and strategy
Core investment: The fund typically invests directly in a mix of assets within the following investment limits:
- at least 50% in fixed income securities (including bonds and asset-backed securities)
- up to 20% in company shares
The fund invests in bonds issued by governments, government-related institutions and companies from anywhere in the world, including emerging markets, which can be denominated in any currency. The fund may invest in bonds of any credit quality, including up to 100% in lower quality bonds. The fund may also invest in Chinese bonds denominated in Renminbi. A minimum of 80% of the fund is typically invested in assets denominated in euro or in other currencies hedged back to the euro.
Other investments: The fund may invest in contingent convertible debt securities, other funds, and cash or assets that can be turned into cash quickly.
Derivatives: The fund may invest via derivatives and use derivatives with the aim of reducing the risks and costs of managing the fund.
Strategy in brief: The fund has a highly flexible investment approach. The investment manager selects investments based on an assessment of a combination of macroeconomic, asset, sector and stock-level factors. Spreading investments across issuers and industries is an essential element of the fund’s strategy.
Performance comparator: The fund is actively managed. A composite index comprising 1/3 Bloomberg Barclays Global Aggregate Corporate Index EUR Hedged, 1/3 Bloomberg Barclays Global High Yield Index EUR Hedged and 1/3 Bloomberg Barclays Global Treasury Index EUR Hedged is a point of reference against which the performance of the fund may be measured. The fund may bear little resemblance to this composite index as it only represents the neutral position of the fund.
Risks associated with the fund
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.
Investments in bonds are affected by interest rates, inflation and credit ratings. It is possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by the fund.
High yield bonds usually carry greater risk that the bond issuers may not be able to pay interest or return the capital.
The fund may use derivatives to profit from an expected rise or fall in the value of an asset. Should the asset’s value vary in an unexpected way, the fund will incur a loss. The fund’s use of derivatives may be extensive and exceed the value of its assets (leverage). This has the effect of magnifying the size of losses and gains, resulting in greater fluctuations in the value of the fund.
The fund is exposed to different currencies. Derivatives are used to minimise, but may not always eliminate, the impact of movements in currency exchange rates.
The hedging process seeks to minimise, but cannot eliminate, the effect of movements in exchange rates on the performance of the hedged share class. Hedging also limits the ability to gain from favourable movements in exchange rates.
In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.
The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.
Further details of the risks that apply to the fund can be found in the fund's Prospectus.
The Fund allows for the extensive use of derivatives.