Bestinvest says
A more cautiously structured high yield bond fund which avoids investing in the lower quality names in the high yield universe with the aim of providing less volatile performance characteristics. The fund tends to perform more strongly in weaker markets and lag in market rallies. The ability to invest in the US High Yield sector also provides the fund with diversification benefits, compared to High Yield funds focusing mainly on the smaller Pan European market. Martin Reeves became the manager in September 2011. He does not have a retail fund track record so the fund is no longer rated. Investors seeking an alternative high yield bond fund should consider our 5 star rated funds in this sector.
A more cautiously structured high yield bond fund which is built with a lower exposure to high beta (highly correlated to the market) names relative to the peer group, that tends to give the fund less volatile characteristics. The process utilises both top down (global economic themes) and bottom up inputs (analysis of companies in their own right), equity price movements and bank strategy as some of the key components of bond selection. To assist in this strategy the fund will primarily target liquid issues whose ordinary shares are publicly listed. Foreign currency exposure is hedged back into sterling. The fund's proxy benchmark is the Merrill Lynch High Yield BB-B constrained (hedged).