A mixture of investment grade bonds and high yielding bonds may be held by the Private Client Sub-Funds.
Investment grade bonds are designed to provide a regular and predictable income during the life of the bond, and upon redemption repay the nominal sum invested. Investment grade corporate and government bonds are therefore attractive for risk-averse investors who are seeking a fixed return with a relative low level of risk.
Investment grade bonds are normally awarded a credit rating by independent rating agencies such as Standard & Poors, and the Fund will only invest directly in issues that are recognized as investment grade, which includes those with Standard & Poor’s credit rating of AAA, AA, A or BBB.
The Sub-Funds may also invest in higher yielding bonds which while more volatile than those bonds mentioned above, can be expected to offer greater returns. Such investments will be made through specialist collective investment schemes, which diversify across a range of issues and issuers.
Investment means that your capital is at risk and the value of investments can fall, therefore you may get back less than you invested.Past performance is no guide to future performance. There is no guarantee that the tax efficient nature of any investment will remain.
Your capital is at risk and the value of investments can fall, therefore you may get back less than you invested.