By ROBERT HARLEY 31/08/2006
The process behind the above fund is benchmark unconstrained and focuses on maximising returns primarily through income combined with an emphasis on capital protection. To achieve the latter the fund manager has aggressively managed credit and duration exposure; he can also invest in cash and G10 sovereign debt if market conditions deteriorate and may make use of financial derivatives allowable under UCITS 3 rules.
This unconstrained total return approach to the high yield asset class is relatively unique within the peer group. Since launch in 2000 the fund has been successful in meeting its performance objectives, to date this has been achieved primarily through investing in sovereign and corporate emerging market debt. Whilst the running costs of fund are high, we believe this is offset by the quality of the team and the distinctive structure of the mandate.
The fund is awarded a four star rating.