Stratton Street’s proposed UCITS version of it’s Next Generation Global Bond Fund (NGGBF) aims to provide investors with both a high income and a superior overall return to both developed and emerging market bond indices over a market cycle. The Fund seeks to sustain higher income than typical investment grade indices, by targeting undervalued investments which amplify capital appreciation while reducing downside risks. Up to 20% of NAV may be in sub-investment grade credit and the Fund can take currency exposure of up to 25% of NAV.
- NGGBF is a global fund with a minimum of 80% in investment grade credits, 80% in sovereigns or quasi sovereigns and up to 25% exposure to non USD currencies. Non USD exposure above 25% will be hedged back to USD.
- NFA analysis combined with where we are in the global cycle enable us to optimise the portfolio country and credit quality positioning throughout the cycle.
- The managers’ credit selections are not constrained by indices. The proprietary global credit pricing model allows the team to select undervalued/mispriced credits.
- The currency overlay is based on Stratton Street’s proprietary models.
- Use of NFA analysis and primary focus on IG space should allow better downside capital protection and lower volatility.
For further information on the fund please email email@example.com or call +44 (0) 20 7766 0888.