Investment Approach

The Fund aims to achieve a total return on your investment, through a combination of capital growth and income, which reflects the return of the J.P. Morgan ESG EMBI Global Diversified Index, the Fund’s benchmark index (Index). The Fund invests predominantly in the fixed income (FI) securities (such as bonds) that make up the Index.

The Index measures the performance of a sub-set of US Dollar denominated fixed and/or floating rate emerging market bonds issued by sovereign or quasi sovereign entities that are part of the J.P. Morgan EMBI Global Diversified Index (“Parent Index”). The Index includes only bonds that meet the index provider’s socially responsible investing (“SRI”) requirements and environmental, social and governance (“ESG”) rating criteria and criteria for an emerging market country. For further details please refer to the prospectus.

The Fund uses optimising techniques to achieve a similar return to its Index. These may include the strategic selection of certain securities that make up the Index and may also include the use of financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets). FDIs may be used for efficient portfolio management (i.e to reduce risk within the Fund’s portfolio, reduce investment costs and generate additional income).