Objective
The fund aims to provide a combination of capital growth and income that is higher than the global emerging markets bond market over any three-year period.
Investment policy and strategy
Core investment: At least 80% of the fund is invested in bonds issued by the governments, government-related institutions and companies that are based, or do most of their business in emerging markets. These bonds can be denominated in any currency. The fund invests in bonds of any credit quality and may invest up to 100% in lower quality bonds. The fund may invest in Chinese bonds denominated in renminbi.
Other investments: The fund may invest in asset-backed securities, contingent convertible debt securities, other funds, and cash or assets that can be turned into cash quickly.
Derivatives: The fund may invest via derivatives and use derivatives to reduce the risks and costs of managing the fund.
Strategy in brief: The investment manager selects investments based on an assessment of global, regional, and country-specific macroeconomic factors, followed by in-depth analysis of individual bond issuers.
The fund is diversified by investing in a range of bonds across different emerging markets, globally.
Benchmark: A composite index comprising:
• 1/3 JPM EMBI Global Diversified Index
• 1/3 JPM CEMBI Broad Diversified Index
• 1/3 JPM GBI-EM Global Diversified Index
The benchmark is a comparator against which the fund’s performance can be measured. The composite index has been chosen as the fund’s benchmark as it best reflects the scope of the fund’s investment policy. The benchmark does not constrain the fund's portfolio construction.
The fund is actively managed. The investment manager has freedom in choosing which assets to buy, hold and sell in the fund. The fund’s holdings may deviate significantly from the benchmark’s constituents.
For unhedged and currency hedged share classes, the benchmark is shown in the share class currency.
You can find more information about the objective and investment policy of the fund in the Prospectus.
Risks associated with the fund
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.
Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.
Investments in bonds are affected by interest rates, inflation and credit ratings. It is possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by the fund.
Investing in bonds from China, denominated in Renminbi and traded on the China Interbank Bond Market, may be subject to greater clearing, settlement and counterparty risk. These factors could cause the fund to incur a loss.
The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.
The fund may use derivatives to profit from an expected rise or fall in the value of an asset. Should the asset’s value vary in an unexpected way, the fund will incur a loss. The fund’s use of derivatives may be extensive and exceed the value of its assets (leverage). This has the effect of magnifying the size of losses and gains, resulting in greater fluctuations in the value of the fund.
In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.
The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.
Operational risks arising from errors in transactions, valuation, accounting, and financial reporting, among other things, may also affect the value of your investments.
Further details of the risks that apply to the fund can be found in the fund's Prospectus.
Other information
The Fund allows for the extensive use of derivatives.
The performance webpage for this fund is currently being reconfigured. In the interim, for performance information, please refer to the latest Fund Factsheet which can be found in the Literature section.