The Fund aims to invest primarily in asset-backed FRNs, with the majority of assets consisting of AAA-rated residential mortgage-backed securities issued by leading financial institutions.Asset-backed securities (ABS) are debt securities where the payment of interest and principal depends on the cash flow generated by a collection of assets and are therefore bankruptcy remote from the issuing institution.
The Fund will have no direct or indirect exposure to US sub-prime assets.
These assets are generally secured debt obligations and include residential mortgages, commercial real estate mortgages, secured small business loans, and other types. Unsecured debt obligations like credit card receivables and consumer loans can also form the collateral pool for ABS deals, but these types of deals are in the minority.
ABS deals can vary in credit rating as well as duration, with the most common offering a 3-5 year AAA.
The investments of the Fund will be issued by world-wide issuers and may be denominated in any currency, although they will be predominantly denominated in Sterling and Euro and may or may not be listed on recognised exchanges and markets.
Sales Literature
articles and commentary
Our full range of literature can be found in the Literature Library.
