Fund Objective

To provide a total return by investing in a portfolio of predominantly sub-investment grade bonds.

View on Past Performance

The high yield market was quiet, moving little during August. Yield spreads widened by 30 basis points (0.3%). The top-performing industries were food, pharmaceuticals, manufacturing and aerospace. Emerging market debt played catch-up with high yield in August, although it has outperformed high yield since the beginning of the year. Any new money into the Fund will be put to work in the US. The Fund was slightly behind its benchmark during August.While our European High Yield and low grade US Dollar High Yield positions returned slightly behind their benchmarks our higher graded US bonds enjoyed a better month. Despite overweight positions in financials and the gaming sectors detracting from returns, the Fund benefited from active positions in the manufacturing and aerospace sectors. Off benchmark positions into US Government Bonds also boosted returns.

Fund Details