The Fund aims to provide investors with a high income, paid monthly, primarily through investment in highly rated and/or high yield bonds from around the world and in derivatives, the underlying assets of which are highly rated and/or high yield bonds from around the world. The portfolio will be managed to minimise any currency risk in Sterling.
High-yield bonds have grown in popularity as investors have introduced greater diversity to their investment portfolios. At the same time, the European high-yield bond market has grown significantly in size and diversity over the past few years. Reasonable global economic growth, an appetite for high-yielding investments and a more flexible approach to fixed-income investment by institutional investors has encouraged greater demand, prompting more companies to issue these bonds in Europe.