European High Yield Bond

Investment objective summary

The Fund aims to provide income and long-term capital growth that is greater than that provided by current European high yield bond markets (as represented by market indices – the weighted average of a selected basket of bonds).

The Fund invests primarily in a broad range of higher interest-paying bonds (contracts to repay borrowed money which typically pay interest at fixed times), priced in Euro or Sterling. These bonds are issued by governments, institutions or companies from around the world operating in the Eurobond (a market for bonds priced in a currency other than that of the country of the issuer), sterling domestic or euro domestic markets. The bonds may be of investment grade (high quality) or below investment grade as rated by the credit rating agencies (companies that rate the ability of the issuers of bonds to repay borrowed money).

The Fund’s investments are primarily priced in euro or hedged (an investment technique which aims to protect the value of an investment against currency movements) back into euro.

The Fund may invest in other assets such as cash, other funds (which may be managed by the Investment Manager, other companies in the same group as the Investment Manager or a third party) and derivatives (financial contracts whose value is linked to the price of an underlying asset). Derivatives may be used for investment purposes (i.e. in order to achieve the Fund’s investment objectives) or for efficient portfolio management purposes e.g. with the aim of either managing the Fund risks or reducing the costs of managing the Fund.