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The Fund aims to provide 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 ICE BofAML Global High Yield Investment Grade Country Constrained Index, GBP Hedged.
LF Canlife Global High Yield 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:
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.
The Fund has exposure across countries, industries, sectors, companies and credit ratings within the global high-yield universe to help reduce volatility.
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.
Fixed income investors may be missing a trick by only allocating to hedged global fixed income products.
A sharp rise in yields has been painful for bond investors but better times lie ahead. We expect rates to peak and the euro to strengthen later this year, opening up some interesting opportunities for global bond investors.