The fund invests mainly in investment grade and high yield bonds issued in US Dollar, Sterling and Euro. Allocations to high yield bonds is capped at 40%, the fund can maintain an average investment grade rating. The key differentiating factor for the fund is the focus on short maturities in order to limit the interest rate risk.
Tatjana is leveraging the expertise of one of the most experienced fixed income teams in London specialising on high yield and crossover (i.e. the junction between high yield and investment grade bonds).
We like the fund as it offers an attractive yield with very low duration, thereby potentially protecting capital well in falling bond markets.