Investment ObjectiveTo maximise the value of its shares through both growth in the value of, and income from, its investments. The fund invests mainly in a diversified portfolio of bonds of all types from issuers around the world.
- Seek to generate values from investing in the full universe of the global fixed income markets. The investment process places a strong emphasis on risk management practices and portfolio diversification to manage the overall risk profile.
- Alpha generation classified under three main performance activities:~~Currency Management: 35% Expected contribution to value added^^~~Country/Duration Management: 35% Expected contribution to value added ^^~~Sector Allocation/Security Selection: 30% Expected contribution to value added^^
- The fund promotes environmental and social characteristics through the investment manager’s avoidance of sectors or companies, whose activities may be considered harmful to the environment and/or society through the application of its proprietary socially responsible screen (exclusion list).
- Environmental, social and governance ("ESG") factors with particular focus on those considered most likely to have a material impact on the performance of the holdings or potential holdings in the funds’ portfolio are assessed. These ESG factors, which are incorporated into the investment process alongside financials, valuation, macro-economics and other factors, are components of the investment decision. Consequently, ESG factors are not the sole driver of an investment decision but are instead one of several important inputs considered during investment analysis.
- Currency limit: maximum +/- 40% relative to benchmark
- Weighted duration limit: maximum +/- 3 years relative to benchmark
- Sub-investment grade: maximum 20%
- Allocation to any corporate bond issuer limited to 5%
- Above investment grade: not restricted (includes corporates and emerging markets)
- Portfolio holdings: between 400 and 600 issuers
- Average credit quality: A- or better
- Target average tracking error: Between 150 basis points and 300 basis points per annum.