Jyske SICAV High Yield Corporate Bonds (SRI) GBP ID

Objectives and investment policy

The objective is to generate a return over time which at least follows the market development in the global market for high yield corporate bonds.

The Sub-Fund assets are primarily invested directly and indirectly in a portfolio of high-yield bonds issued by companies. The majority of the bonds will be rated below investment grade. The bonds involve a high credit risk. In principle, investments in other currencies than GBP will be hedged against GBP.

At least 80% the Sub-Fund’s assets may be invested in the US market for high-yield bonds, also called the OTC fixed in-come market, regulated by the FINRA (Financial Industry Regulators Authority) and in Rule 144 A issues that can be converted into instruments registered within one year with the U.S. Securities and Exchange Commission (SEC) in accordance with the Securities Act of 1933 and are traded on the OTC fixed income market. There are no requirements of the rating of such bonds, of the size of the issues or of the liquidity hereof. The Sub-Fund may also invest directly in rated CoCos for less than 20% of its assets.

The fund may invest up to 10% of its assets in UCITS and other UCIs.

The Sub-Fund is managed according to specific principles of socially responsible investments (SRI) and excludes certain companies or securities:

  • that operate in a way that violates widely accepted international conventions and standards relating to environment, human rights and business ethics;
  • with revenue from the production or distribution of weapons, alcohol, tobacco, fossil fuels, gaming or adult entertainment. 

For operational reasons specific tolerance thresholds are applied in the selected business areas and reservations are made for missing identification. The definition of the exclusion criteria means that the list of excluded companies is constantly changing.

The Sub-Fund promotes, among other characteristics, ESG characteristics.

In connection with the selection of assets, the Investment Manager makes an overall assessment of the Sustainability Risk of the investment. The assessment of Sustainability Risk is made on the basis of the individual company’s ESG profile and an assessment of the company’s ability to handle such risks.

On an ongoing basis, the Investment Manager screens the Sub-Fund’s portfolio. Such screenings are based on data from an external service provider with a view to ensuring that the Sub-Fund solely invests in companies that meet a number of criteria in respect of responsible investment.

Companies and sectors, which are deemed norm-breaking and highly controversial, including fossil fuels, are not selected for the Sub-Fund. In this way, the investments seek to target companies with a better handling of Sustainability Risks. 

Financial instruments

To adjust the fund's risk to a defined risk profile, the fund may use derivative financial instruments (derivatives).

Benchmark

You can assess the reward by comparing it with the reward of the benchmark which is composed by 50% ICE BofAML BB-B European Currency High Yield Constrained Index (Hedged into GBP), and 50% ICE BofAML BB-B US High Yield Constrained Index (Hedged into GBP).

The Sub-Fund pursues an active investment strategy. Due to the active strategy, the Sub-Fund's investments may deviate considerably from the benchmark, and your reward may be higher as well as lower than the benchmark. The benchmark is only used for comparison of performance. 

The Sub-Fund’s benchmark is not designed to promote ESG characteristics. Information on the methodology behind the calculation of the two benchmarks is available at www.ice.com.

Dividends

This share class may pay out distributions once a year.

Recommendation - This fund may not be appropriate for investors who plan to withdraw their money within 4 years of investment.