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LF Canlife Global High Yield Bond Fund
About the Fund
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.
Essential features of the Fund
LF Canlife Global High Yield Bond Fund
- The Fund aims to achieve its objective by investing at least 85% of the scheme property by value in units of the Putnam Global High Yield Bond Fund (the Master Fund), a Sub-fund of Putnam World Trust, an umbrella unit trust constituted by the Trust Deed and authorised by the Central Bank of Ireland pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011
- The Fund may also hold up to 15% of the scheme property by value in cash or near cash
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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