Description

This global bond fund aims to achieve both capital growth and income distributions by tactically investing in a wide array of government and corporate debt instruments from across the globe. While most of its bond holdings are investment-grade, the portfolio permits allocations of up to 20% in high-yield bonds and up to 15% in CLO debt tranches and other types of asset-backed securities. The fund's investments can also include senior secured, unsecured, subordinated, and convertible debt, alongside fixed and floating rate obligations, bank loans, money market securities, and stakes in other investment funds. For additional earnings, the fund manager may engage in securities lending transactions and utilize total return swaps or other derivative products. These derivatives can also serve to hedge the portfolio's exposure to interest rate fluctuations. The periodic reconstruction and rebalancing of BND occur at the discretion of its sub-advisor.