The Fund's investment objective is to replicate, before fees and expenses, the price and yield performance of the ICE BofAML Diversified High Yield US Emerging Markets Corporate Plus Index (the 'Index'). In order to seek to achieve its investment objective, the investment policy of the Fund is to invest in a diversified portfolio of US dollar denominated below investment grade emerging markets corporate and quasi-government debt instruments publicly issued and listed on major US and Eurobond markets that consist of the component securities that comprise the Index. The Index is comprised of fixed rate US dollar investment grade emerging markets corporate and quasi-government debt instruments with greater than 12 months to maturity.
In order to qualify for inclusion an issuer must have risk exposure to countries other than members of the FX G10, and territories of the US and Western European countries. The FX-G10 includes all Euro members, the US, Japan, the UK, Canada, Australia, New Zealand, Switzerland, Norway and Sweden. The Fund, using a 'passive' or indexing investment approach, attempts to approximate the investment performance of the Index by investing in a portfolio of securities that generally replicates the Index. Due to the practical difficulties and expense of purchasing all of the securities in the Index, the Fund does not purchase all of the securities in the Index.Instead, the Investment Manager utilises a 'sampling' methodology in seeking to achieve the Funds objective. The Fund may purchase a subset of the debt instruments (for example bonds) in the Index in an effort to hold a portfolio of debt instruments with generally the same risk and return characteristics of the Index.