Category: Open Ended Investment Company
The Fund aims to maximise the returns on your investment through a combination of income and capital growth, through investment in the global fixed income market. Policy The Fund invests at least 50% of its assets in high yield bonds (i.e. bonds classified as below investment grade) issued by companies worldwide which are denominated in US Dollar or non-US Dollar bonds that are hedged back into US Dollar. Although the focus is on high yield corporate bonds, the Fund may also invest in investment grade corporate bonds, government bonds, cash or assets that can be turned into cash quickly. The Fund invests in developed and emerging markets, with a maximum of 20% of its net assets invested in emerging markets. Where the Fund invests in non-US Dollar assets, the currency exposure of these investments will generally be hedged back to US Dollar. Up to 5% of the Fund's currency exposure may not be hedged (i.e. the Fund may be exposed to the risks of investing in another currency for up to 5% of its assets). The Fund may invest both directly, and through the use of derivatives. The use of derivatives may generate market leverage (i.e. where the Fund takes market exposure in excess of the value of its assets). Recommendation This Fund may not be appropriate for investors who plan to withdraw their money within 5 years. How to buy You may buy or sell shares on a daily basis (but not weekends or Bank Holidays). Orders must be received by 11.59a.m. (Irish time) for execution at midday valuation point. Investment process The fund manager decides which investments to hold in the Fund based on an assessment of a combination of macroeconomic, asset, sector and individual investment level factors. Before being selected, an assessment is made of the creditworthiness of each potential investment (i.e. the likelihood of the companies issuing the bonds being able to meet the coupon payments or pay back the capital of the bond on maturity). A number of other factors are also considered, such as expected total return relative to the assessed risk, duration and liquidity. Further details may be found in the prospectus and information on the investment process may be found at www.liontrust.co.uk.