The Fund aims to generate positive returns and preserve capital principally by buying debt instruments that offer a yield but also the potential to convert to shares (convertible bonds). The Fund is actively managed and not managed with reference to a benchmark. The Fund aims to achieve a return that exceeds LIBOR. The Fund has a global focus. The Fund invests in bonds which are either Investment Grade or non-Investment Grade in developed and emerging market countries.
The Fund invests primarily in convertible bonds that are trading close to their fixed income value. These convertible bonds are less sensitive to share price movement and are more bond-like in their risk profile, offering protection if shares prices fall. If share prices rise, they can still participate in this rise as they become increasingly equity-like.