Senior Fund Manager, Fixed Income
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.
LF Canlife Global Macro 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
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.
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 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.
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.