Bestinvest says
This is essentially a more income orientated version of the manager's Strategic Bond Fund, otherwise it basically follows the same investment themes. Whilst the fund may produce a higher level of income, it may be accompanied by higher volatility.
This fund aims to achieve a stable yield at low levels of volatility, whilst also being careful not to over expose the fund to default risk. To achieve this objective the manager benefits from a flexible mandate, not dis-similar to his Strategic Bond Fund. Allowable investments include government securities, corporate bonds, preference shares and other fixed interest securities. The manager will actively manage exposure to these asset classes and duration risk in order to protect capital and provide income, the mandate also provides for the use of derivative instruments to assist in this aim. The manager will draw on the asset allocation and strategy team to help form his views. Over the years the fund's allocation to preference shares has diminished as the size of this opportunity set has diminished whilst the fund has grown in size.