This distinctive income-focused strategy invests in a combination of emerging market equities and corporate bonds, aiming to deliver an attractive, steady annual income and capital growth over the long term.
We believe there is a large and diverse range of income opportunities to be found among emerging market equities and corporate bonds.
The two asset classes are also complementary: bonds typically offer higher income with lower volatility than equities; equities tend to have higher capital growth potential, but higher volatility than bonds.
The relatively high level of income from bonds enables equities to be selected for their capital and dividend growth potential, not just for their yield.
We search for the ‘best ideas’ in each asset class on a bottom-up basis and then select the optimal combination of bonds and equities that will enable us to meet our target objectives.
At least 25% of assets will be invested in each asset class at all times, although the exact balance between equities and bonds reflects where we are finding the most compelling investment opportunities at any particular time.