SCOTTISH WIDOWS STRATEGIC INCOME A - Fund overview

Portfolio

• Asset Allocation
• Equity Geographic
• Equity Capitalisation

Allocation		Proportion
	Equity	5%
	High yield bonds	30%
	Quality bonds	60%
	Property	0%
	Commodities	0%
	Hedge	0%
	Fund cash	5%

Allocation		Proportion
	UK	68%
	Europe	28%
	Nth America	4%
	Japan	0%
	Pacific	0%
	Other Equity	0%

Allocation		Proportion
	Large Caps	80%
	Mid Caps	15%
	Small Caps	5%

View all performance data for SCOTTISH WIDOWS STRATEGIC INCOME A

Investment process

The fund objective is to produce a high level of income through a portfolio of investment grade and high yield corporate bonds issued by UK and European companies.
A macro view is combined with a detailed look at individual securities, hence sector performance is inherently considered. The team arrive at an independant view of the credit quality of an issue from inspection of a company's balance sheet and a thorough investigation into their five year equity forecasts. After this analysis qualitative attributes will be evaluated before meeting the management.
The majority of this company analysis is carried out by the credit team, but they will maintain close dialogue with the relevant in house equity analysts. A number of key characteristics are assessed including, amongst others, extent of leverage, pricing power and event risk. Finally, analysis of the current stock price is used to assess the relative value at the time, which also covers bond price drivers such as supply and demand.