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LF Canlife Global High Yield Bond Fund

About the fund

Canada Life Asset Management and Putnam Investments have partnered to offer the LF Canlife Global High Yield Bond Fund. The Fund seeks to provide high current income along with the prospect of some capital growth by holding units in a globally diversified portfolio of high-yielding fixed income securities managed by Putnam. The LF Canlife Global High Yield Bond Fund (the 'Feeder Fund') invests in the Putnam Global High Yield Bond Fund (the 'Master Fund') through a master-feeder structure.

 

 

Essential features of the Fund

LF Canlife High Yield Bond Fund

  • The LF Canlife Global High Yield Bond Fund will normally be fully invested in the Master Fund but may hold up to 15% in cash and near cash
  • The Master Fund aims to achieve high current income with some capital growth by investing in high-yielding, lower-rated fixed income securities such as those rated lower than S&P's BBB or Moody's Baa
  • It may invest in corporate and government debt securities, preference shares and mortgage-backed and asset-backed securities
  • The Feeder Fund invests in the 'S' share class of the Master Fund which is hedged to sterling
  • The Master Fund has no need to adhere to a particular benchmark
  • The Master Fund is a sub-fund of Putnam World Trust, which is an umbrella unit trust and an undertakings for collective investment in transferable securities (UCITS) scheme established and organised under the laws of Ireland

For further details on the objective and investment policy, visit the Literature section to view fund KIIDs and Prospectus.

How the fund is managed:

  • Bottom-up fundamental credit research within a top-down framework – the managers identify attractive opportunities arising from inefficiencies in global high-yield fixed interest markets. The high-yield market is characterised by small issuers, complex securities, and a diverse set of markets, economic environments and business cycles.
  • Security selection – this is driven by weighing relative value offered against the potential risk-adjusted returns. The Fund is diversified across countries, industries, sectors, companies and credit ratings within the global high yield universe to help reduce volatility.
  • Generating outperformance - the management team believe this happens over time and requires avoiding deteriorating credits, identifying opportunities for capital appreciation, adhering to a stringent risk management process, and actively managing the portfolio’s credit profile from the top down.

Reasons to recommend

Higher Income

Low interest rates, low bond yields and rising longevity mean that the hunt for income has become more important than ever. The Master Fund aims to provide a high current income by investing in bonds that pay an attractive yield.

Global diversification

The Fund has exposure across countries, industries, sectors, companies and credit ratings within the global high-yield universe to help reduce volatility.

Experienced team

The Master Fund is managed by Putnam Investments, a firm with 75 years’ of experience investing in credit markets and a long standing capability in high yield.

The value of investments may fall as well as rise and investors may not get back the amount invested.

The LF Canlife Global High Yield Bond Fund (the 'Feeder Fund') invests in the Putnam Global High Yield Bond Fund (the 'Master Fund') through a master-feeder structure.. LF Canlife Global High Yield Bond Fund permanently invests at least 85% in value of its assets in the Master Fund. It will normally wholly invest in the Master Fund but may at times hold up to 15% in cash or near cash. The Master Fund is a sub-fund of Putnam World Trust, which is an umbrella unit trust and an undertakings for collective investment in transferable securities (UCITS) scheme established and organised under the laws of Ireland.

 

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