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LF Canlife Global Macro Bond Fund

About the Fund

The Fund aims to achieve income with 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 IA Global Mixed Bonds sector.

Essential features of the Fund

LF Canlife Global Macro Bond Fund 

  • The Fund is globally diversified with a focus on advanced economies. Its holdings are primarily spread across high-quality government and investment grade corporate bonds, as well as currencies, countries, maturities and sectors
  • Invests at least 80% of its assets by value, worldwide in investment grade bonds (such as corporate bonds, government and public securities), and may also invest up to 20% of its assets by value, worldwide in non-investment grade bonds, money market instruments, deposits and cash
  • Can invest across different industry sectors and geographic regions without limitation
  • Investment in collective investment schemes is limited to 10% of assets by value
  • The Fund may use derivatives for efficient portfolio management purposes

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 and monetary factors, such as interest rates and inflation, and analyse the domestic influences on the global bond markets
  • A detailed macro review is undertaken quarterly, resulting in economic and interest rate forecasts in key markets
  • 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 managers use the exposure of a typical global bond index as a starting point and then seek to add value by implementing views on interest rates, currencies and credit spreads. This is achieved via; yield curve management, government versus corporate credit, sector allocation, security selection, taking a view on currencies - FX exposures are generally left unhedged
  • Top-down analysis - is used for setting interest rate and macroeconomic forecasts, which feeds into the Fund’s duration and currency exposures
  • We believe maintaining exposure to the most attractive currencies at any given time can substantially add to total return
  • Bottom-up selection – the managers draw on our in-house credit research capabilities, which support their fundamental views on individual fixed income securities, as well as duration positioning and macroeconomic trends

Investment week fund manager of the year awards 2021 finalist Global bonds

Reasons to recommend

Capital growth potential

The Fund also represents a long-term investment solution that offers the prospect of growth, making it an attractive building block in a diversified investment portfolio.  The Fund may not be appropriate for investors who plan to withdraw their money within five years.

Globally diversified

As a truly global bond fund, the LF Canlife Global Macro Bond Fund benefits from broad diversification across government and corporate bonds, but also currencies, countries, maturities and sectors. This is important as currency can be an important driver of returns and its impact is often overlooked.

Drawing on experience

The fixed income team at Canada Life Asset Management are able to draw on their considerable experience in managing fixed income assets, including conventional fixed income, index-linked bonds, corporate credits and global bonds.

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

David Arnaud

Senior Fund Manager, Fixed Income

Learn more
Kj Sinha

Kshitij 'KJ' Sinha

Fund Manager, Fixed Income

Learn more
Sales contact
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Adam Creed

Sales Director – Discretionary and Group

020 7415 6488

adam.creed@canadalife.co.uk

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