LF Canlife Short Duration Corporate Bond Fund

LF Canlife Short Duration Corporate Bond Fund 

• The Fund will primarily invest in sterling denominated corporate fixed interest securities with an emphasis on investment grade short dated maturities

• The Fund may also invest in other debt securities including non-investment grade, non-sterling corporate bonds, government and public securities and money market instruments, and also in other transferable securities, cash, near cash and collective investment schemes

• The managers do not attempt to track the benchmark, the iBoxx £ Non-Gilt 1-5 Year Index, but are always aware of the Fund’s positioning against it

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

How the Fund is managed

• The managers consider global trends in macro factors, such as interest rates and inflation, and analyse the domestic influences on UK bond markets
• A detailed quarterly macro review is undertaken making forecasts for interest rates and bond yields in the UK, US and Europe
• A weekly review involving the entire fixed income team is undertaken to assess positioning and market developments, including commodity prices, inflation expectations, currencies, equity markets, sovereign CDSs, liquidity, bond yields, economic data releases, new issues coming to the government and corporate bond markets

• The Fund is then constructed via a bottom-up approach, with the managers ensuring that the Fund’s sector exposure is sufficiently diversified, as well as reflective of the teams’ macro views. Looking at each sector, they seek the best-value companies and review valuations on three levels: price relative to peer issues, price relative to past performance, price relative to outlook and ratings