Description

The fund seeks total returns with an emphasis on capital preservation and low correlation to traditional equity and bond markets. To achieve this goal, the fund will invest in investment grade debt and use leverage through cash borrowings, short sales and derivatives. The use of leverage (up to 3x its assets) will aim to increase the portfolios expected yield, while limiting portfolio volatility by reducing interest rate sensitivity mainly through short-selling government debts, or shorting bond futures, to offset long positions in corporate bonds. Managing its derivative exposure requires flexible approach, so expect a higher turnover rate. Security selection is based on fundamental principles and technical market conditions. Although debt holdings are primarily of corporations and financial institutions in the developed world, it will also include issuers in multiple industry sectors and geographical locations in all parts of the capital structure and maturity profile.