Global High Income Bond Fund

Investment Overview

This actively managed UCITS fund invests in a diversified portfolio of global high yield (sub-investment grade) corporate bonds with the objective of delivering a 7–9% annual income yield distributed to investors on a monthly basis. The fund is domiciled in Dublin and regulated under the EU UCITS framework, providing the investor protections associated with regulated collective investment schemes including independent administration, depository oversight, and daily dealing.

What Are High Yield Bonds?

High yield bonds (also referred to as "sub-investment grade" or "junk bonds" in US parlance) are corporate bonds issued by companies rated below BBB- (S&P) or Baa3 (Moody's). Because these issuers carry higher credit risk than investment-grade companies, they must offer higher interest rates to attract investor capital. The yield premium over investment-grade bonds — the "spread" — compensates investors for the additional default risk.

The global high yield bond market has matured significantly since the 1980s and is now a well-established asset class with considerable issuer diversity across sectors and geographies. Default rates in any given year typically range from 2–6% across the broader market, with active managers seeking to avoid the defaults through credit analysis.

Portfolio Construction

The fund manager employs bottom-up credit analysis to construct a diversified portfolio of 50 or more issuers across US, European, and Asian high yield markets. No single issuer represents more than 3% of the portfolio at any point. The investment process focuses on identifying bonds where the coupon compensates adequately for the assessed default risk — avoiding the most distressed and leveraged credits while capturing the majority of the high yield premium.

Currency risk is actively managed: USD-denominated bonds make up the majority of the portfolio, with hedged share classes available for EUR and GBP investors.

Income Distribution

Monthly income distributions are the primary return objective of the fund. Target income yield of 7–9% per annum is based on the projected weighted average coupon of the portfolio net of fund charges, and is not guaranteed. In periods of credit market deterioration or rising defaults within the portfolio, distributions may be reduced. Investors should not plan around the distribution as a fixed income stream — it will vary with market conditions and portfolio composition.

Risk Factors

Credit risk and default: The most significant risk in high yield bond investing is that issuers default — failing to pay interest or principal. A concentrated default in the portfolio can meaningfully reduce NAV. The fund manager seeks to mitigate this through diversification and credit analysis, but cannot eliminate default risk in sub-investment grade bonds.

Interest rate risk: As with all fixed income, rising interest rates reduce the market value of bonds in the portfolio (because newer bonds issued at higher rates become more attractive). High yield bonds are less interest-rate sensitive than investment-grade bonds (shorter duration, higher coupon), but are not immune to rate moves.

Liquidity: High yield bonds are less liquid than investment-grade bonds or equities. In periods of market stress, the bid-ask spread widens and it can be difficult to sell bonds at fair value. The fund offers daily dealing, but in extreme market conditions the manager may suspend or gate redemptions.

Currency risk: USD share class investors are exposed to moves in the underlying bond currencies. Hedged GBP and EUR share classes are available and largely remove currency risk for those investors, at a small hedging cost.

Share Classes and Minimum Investment

The fund offers income share classes in USD, EUR (hedged), and GBP (hedged). The minimum initial subscription is $25,000 (or €25,000 / £25,000 in the relevant currency class). Monthly distributions are paid directly to the investor's nominated bank account or can be reinvested in additional units at the investor's election. The fund has no lock-up period — subscriptions and redemptions are processed daily on the basis of the previous day's NAV.

How to Invest via Global Investments

Contact our investment team to receive the full fund prospectus, Key Investor Information Document (KIID), most recent factsheet, and subscription documentation. We will confirm current distribution rates, latest NAV, and the appropriate share class for your currency and tax situation. This fund is available to both retail and sophisticated investors subject to applicable suitability requirements in your jurisdiction.

Important: The target yield of 7–9% per annum is not guaranteed. High yield bonds carry meaningful credit risk including the risk of issuer default. The value of the fund and the level of income distributions can fall as well as rise. Past performance is not a reliable indicator of future results. Seek independent financial advice before investing.