Senior Fund Manager, Fixed Income
The fund aims to maximise return and to provide a half-yearly income mainly from investment in sterling-denominated investment grade corporate bonds whilst seeking to capitalise on their additional income relative to UK government bonds
LF Canlife Corporate Bond Fund:
For further details on the objective and investment policy, visit the Literature section to view fund KIIDS and Prospectus.
How the Fund is managed:
We seek to invest in corporate bonds that look attractive from a risk/return perspective and which are capable of delivering attractive yields to investors. As a result, the Fund aims to provide investors with an above-inflation income, through investment in companies that we believe offer the best long-term value.
A focus on fundamentals
Particular attention is devoted to corporate dynamics and strategy, balance sheet strength, liquidity, leverage and management quality. Our team favours issuers displaying a number of different characteristics – including solid profitable businesses with long track records, limited ratings downsides, positive cash flows, low debt levels, clear disclosures and bonds offering structural seniority.
The Fund is actively managed and well diversified, and aims to offer a lower volatility and drawdown profile relative to the benchmark. The Fund may not be not be appropriate for investors who plan to withdraw their money within 5 years.
The value of investments may fall as well as rise and investors may not get back the amount invested.
Triple-B rated corporate bonds have attracted much attention this year as they now represent more than half of the Investment Grade market. The growing number of BBBs is largely attributed to how Quantitative Easing and an unusually long period of low interest rates have made it easier and cheaper for companies to lever up and finance their businesses.