The fund aims to provide an annual yield of 4-6%. The fund also aims to grow capital over any five-year period.
Investment policy and strategy
Core investment: At least 80% of the fund is invested in emerging market assets including:
• at least 25% in the shares of companies, across any sector and of any size, that are based, or do most of their business, in emerging markets;
• at least 25% in bonds issued by companies or government-related institutions that are that are based, or do most of their business, in emerging markets; and
• property-related securities.
The fund may invest in China A-Shares and in Chinese bonds denominated in renminbi.
Other investments: The fund may invest in asset-backed securities, contingent convertible debt securities, other funds and cash or assets that can be turned into cash quickly.
Derivatives: The fund may also invest via derivatives and use derivatives to reduce the risks and costs of managing the fund.
Strategy in brief: The fund is actively managed. The fund employs a bottom-up approach to find the best investments to deliver on its income target while striving to generate long-term capital growth. The fund’s allocation between bonds and shares is an output of the investment process and portfolio construction and, as such, is the result of the investment manager investing in the best ideas, individually and relatively, across the capital spectrum.
Benchmark: The fund is actively managed and has no benchmark. Investors can assess the performance of the fund by its objective to provide an annual yield of 4-6% and grow capital over any five-year period.
You can find more information about the objective and investment policy of the fund in the Prospectus.
Risks associated with the fund
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.
The fund may use derivatives to profit from an expected rise or fall in the value of an asset. Should the asset’s value vary in an unexpected way, the fund will incur a loss. The fund’s use of derivatives may be extensive and exceed the value of its assets (leverage). This has the effect of magnifying the size of losses and gains, resulting in greater fluctuations in the value of the fund.
The fund may be highly concentrated at times in a limited number of investments or areas of the market, which could result in large price rises and falls.
The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.
Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.
In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.
The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.
Further details of the risks that apply to the fund can be found in the fund's Prospectus.
The Fund allows for the extensive use of derivatives.
The performance webpage for this fund is currently being reconfigured. In the interim, for performance information, please refer to the latest Fund Factsheet which can be found in the Literature section.