Download bonds plus 400 fund - Insight Investment

BONDS PLUS 400 FUND
A sub-fund of LDI Solutions Plus plc
30 APRIL 2017
FOR PROFESSIONAL CLIENTS ONLY, NOT FOR DISTRIBUTION TO RETAIL CLIENTS
FUND OBJECTIVE
The investment objective of the Fund is to seek to deliver an annualised return, gross of all
fees and expenses, that is at least 4% (or 400 basis points) above the return provided by the
Fund’s benchmark.
INVESTMENT APPROACH
The Fund aims to outperform its cash benchmark by four percentage points per annum over
rolling-three year periods*. The Fund is actively managed investing in fixed income securities
and currencies, either directly or via derivatives, to express views on the direction of global
bond markets. The Fund uses a diversified approach seeking to add value by incorporating a
wide fixed income opportunity set. The investment universe may include corporate bonds,
conventional and index linked gilts, overseas bonds, emerging market debt and currencies.
The Fund is managed following a rigorous, disciplined and proven investment process that
includes in-depth analysis within a strong risk-controlled framework. The management team
selects opportunities that offer attractive risk-adjusted returns across a diversified portfolio
within clearly defined parameters, with an aim to add value in all market conditions.
PERFORMANCE (%)
1 Month
FUND FACTS
Fund size
Inception date
Benchmark
Fund manager
£2.3bn
07 March 2013
3 month sterling Libor
Andrew Wickham
KEY BENEFITS
• Actively managed and designed to
outperform a cash benchmark
• Aims for consistent risk-adjusted
returns through a diversified portfolio
• Rigorous, disciplined and proven
investment process
• A large and experienced team of fixed
income specialists
3 Months
Bonds Plus 400 Fund
YTD
1 Year
Since Inception
3 month sterling Libor
Source: Insight Investment. Performance of the Fund is on an offer basis with income reinvested and gross of
management charges.
FUND MANAGER’S COMMENTS
The Fund delivered a positive return in April, modestly outperforming its cash benchmark. The
first round of the French election was the main event of the month, ending in a market-friendly
outcome as centrist Emmanuel Macron made it through to the second round as the strong
favourite. Elsewhere, US economic indicators displayed a modest slowdown. The Fund’s
interest rate positions contributed negatively. We had a short in Germany versus a long in
Australia which was neutral overall. Our short duration strategy in the UK and the US was a
small negative as yields fell, particularly in the UK. US inflation expectations also fell, hurting our
long in breakevens. Our credit exposure was the largest positive contributor. We held a modest
long in credit combined with some single name credit default swap positions. Our long in assetbacked securities also continued to perform positively. Sub-investment grade and emerging
market exposure was neutral overall.
*This is not a guarantee, may not be
achieved and a capital loss may
occur. Funds which have a higher
performance aim generally take
more risk to achieve this and so have
a greater potential for the returns to
be significantly different than
expected.
Past performance is not a guide to
future performance.
The value of investments and any income
from them will fluctuate and is not
guaranteed (this may be partly due to
exchange rate fluctuations). Investors may
not get back the full amount invested. This
document is aimed at professional clients
only. It is not designed for, and should not
be used or relied upon by retail clients.
Unless otherwise stated, all data is as at
the date of this factsheet and represents
share class S.
BONDS PLUS 400 FUND
INTEREST RATE EXPOSURE BY CURRENCY
TECHNICAL DETAILS
(in weighted average duration)
Legal structure
Sterling
-2.9
US dollar
-8.0
Euro
2.1
Other
5.7
Total
-3.1
Qualifying Investor
Alternative Investment Fund
(QIAIF)
Domicile
Ireland
Listing
Irish Stock Exchange
Share class currency
Sterling , Euro
Dealing frequency
CREDIT AND EMERGING MARKET EXPOSURE (% of Fund)
Bi-monthly, 5pm*
Pricing method
Investment grade
24.6
High yield
5.3
Loans
6.2
Emerging market debt
12.2
ABS
13.6
TOP 10 CURRENCY EXPOSURES (% of Fund)
Swinging single price
Custodian
Administrator
Northern Trust Fiduciary
Services (Ireland) Limited
Northern Trust International
Fund Administration Services
(Ireland) Limited
* 15th day or next following business day and last
business day of month
SHARE CLASS B
Pound sterling
100.4
Chinese yuan
2.2
ISIN £
IE00B7W1J359
Chinese Renminbi (Hong Kong market)
-2.2
ISIN €
IE00B8989Q90
Japanese Yen
-1.8
Annual management charge
0.75%
Australian dollar
-1.4
Minimum initial investment
£100m
Indian Rupee
0.7
United States dollar
0.7
Israeli new sheqel
0.4
Swedish krona/kronor
0.4
South African rand
-0.2
SHARE CLASS B2
ISIN £
IE00BHD66Z07
Annual management charge
1.0%
Minimum initial investment
£1m
SHARE CLASS S
ISIN £
IE00B6ZS9259
ISIN €
IE00B7X2GQ98
Annual management charge
Fees will be
negotiated and charged
outside the Fund via a fee
agreement.
Minimum initial investment
£1m
This document may not be used for the purposes of an offer or solicitation to anyone in any jurisdiction in which such
offer or solicitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation. The
information in this document is general in nature and does not constitute legal, tax, or investment advice. Investors are
urged to consult their own advisers on the implications of making an investment in, and holding or disposing of shares
in the Fund. Any losses in the fund will be borne solely by investors in the fund and not by BNY Mellon (including its
affiliates); therefore BNY Mellon’s losses in the fund will be limited to losses attributable to the ownership interests in
the fund held by BNY Mellon and any affiliate in its capacity as an investor in the fund or as beneficiary of a restricted
profit interest held by BNY Mellon or any affiliate. Ownership interests in the fund are not insured by the FDIC, are not
deposits, obligations of, or endorsed or guaranteed in any way, by BNY Mellon. Neither BNY Mellon nor any of its
controlled affiliates (which includes the fund’s general manager/ managing partner/ investment adviser), may directly
or indirectly, guarantee, assume, or otherwise insure the obligations or performance of the fund or of any other
covered fund in which the fund invests. Investors should read the fund’s offering documents before investing in the
fund. Information about the role of BNY Mellon, its controlled affiliates, and their employees in sponsoring or providing
services to the fund are described in the Volcker Rule section of the offering documents. Issued by Insight Investment
Funds Management Limited, 160 Queen Victoria Street, London EC4V 4LA. Registered in England No. 01835691.Insight
Investment Funds Management Limited is authorised and regulated in the UK by the Financial Conduct Authority.
© 2017 Insight Investment. All rights reserved.
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