Bestinvest says
This fund was previously on Bestinvest's buy list when it was under the stewardship of the well regarded Stewart Cowley back in 2008. And whilst the current manager has many years of experience operating in the global sovereign debt and currency markets,we have stronger conviction with some other fund managers, operating in the international bond space.
The aim is to maximise total return from income and capital growth from the world's sovereign bond and currency markets. The bonds held are typically those of OECD (typically large developed economies) countries or of supranational quality. The fund consists of an actively managed portfolio of bonds denominated in different currencies. Currency hedging may be undertaken to reduce currency specific risk and prevent it from dominanting portfolio returns, however at the same time it is viewed as a source of potential return. The manager also aims to add value through active duration management, yield curve positioning, and country selection. I.e. a combination of strategic and tactical timing. The investment process may utilise derivatives to implement some of these strategies. The investment team will conduct backward looking statistical analysis, test portfolios under various future scenarios and attach probabilities to these outcomes occurring.