Redeploying cash: Where to invest next? 

Scenario 1 – Growth

Investment solution: High income

• This is our base-scenario: an environment of moderate growth and continued disinflation.
• Investors will be seeking high income and might fear missing out the bond market rally.
• This backdrop sets up an attractive environment for active security selection within credit markets.

Risks – The following risks are materially relevant to the following funds:

Diversified Income Bond Fund: Credit, Currency, Default, Derivative, Hedging, High yield bond, Interest rate, Emerging markets

Global High Income Bond Fund: Credit, Default, High yield bond, Interest rate, Hedging

Global High Yield Bond Fund: Credit, Default, Geographic concentration, High yield bond, Interest rate

Scenario 3 – Stagflation 

Investment solution: Diversification

• Higher interest rate and prolonged stress on fundamentals.
  
• Inflation reaccelerates while growth stalls.
  
• Investors should consider diversifying strategies, that combine decorrelated performance behaviour, active interest rate management and security selection.
  

Risks – The following risks are materially relevant to the following funds:

Dynamic Credit Bond Fund: Credit, Currency, Default, Derivative, Distressed or defaulted debt, Emerging markets, Frontier markets, Geographic concentration, Hedging, High yield bond, Interest rate, Issuer concentration, Security Liquidity, Sector concentration 

Dynamic Global Bond Fund: Credit, Currency, Default, Derivative,  Emerging markets, Geographic concentration, Hedging, High yield bond, Issuer concentration, Sector concentration.

Risks: For fund specific risks please refer to the prospectus
General Fund Risks
Conflicts of Interest – The investment manager's obligations to a fund may potentially conflict with its obligations to other investment funds it manages. Counterparty – Counterparty risk may materialise if an entity with which the fund does business becomes unwilling or unable to meet its obligations to the fund. Custody – In the event that the depositary and/or custodian becomes insolvent or otherwise fails, there may be a risk of loss or delay in return of certain fund's assets. Cybersecurity – The fund may be subject to operational and information security risks resulting from breaches in cybersecurity of the digital information systems of the fund or its third-party service providers. ESG – Environmental, social or governance event(s) or condition(s) may occur, which could have/result in a material negative impact on the value of an investment and performance of the fund. Investment fund – Investing in funds involves certain risks an investor would not face if investing in markets directly. Inflation – Inflation may erode the value of the fund and its investments in real terms. Market – Market risk may subject the fund to experience losses caused by unexpected changes in a wide variety of factors. Market Liquidity – In extreme market conditions it may be difficult to sell the fund's securities and it may not be possible to redeem at short notice. Operational – ​Operational risk may cause losses as a result of incidents caused by people, systems, and/or processes. Sustainability – Funds that seek to promote environmental and/or social characteristics may not or only partially succeed in doing so.

Ahead of the Curve: Expert Perspectives on Fixed Income Markets

Fixed income markets are constantly evolving and the pace of change is relentless. Original thinking and independent analysis are crucial for investors to stay Ahead of the Curve.