Senior Fund Manager, Fixed Income
The Fund aims to provide an income and the potential for capital growth, over any five-year period, after all costs and charges have been taken. The Fund’s comparator benchmark is the Markit iBoxx GBP Corporate Bond Index.
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 looks to provide investors with an 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, well diversified and aims to offer a lower volatility and drawdown profile relative to the benchmark. The Fund may not be appropriate for investors who plan to withdraw their money within five years.
We have a significant credit research team and a long heritage in fixed income investing, with a focus on strong credits, diversification and capital protection.
The last 12 months have seen fixed income assets fall in value at different times, for different reasons. The onset of the covid-19 crisis in March 2020 saw credit spreads widen significantly, negatively impacting the performance of credit-focused bond funds as investors dashed for the safety of government bonds. These assets outperformed as yields tumbled.
Short-duration bonds aren’t purely a defensive play. Mike Count, manager of the LF Canlife Short Duration Corporate Bond Fund, sees selective opportunities for attractive returns among recovery and growth names.