Sunwise Elite Fidelity US Focused Stock 75/75 (0P00007641)

Overview

The fund is designed primarily for investors seeking high yield returns through investments in fixed income securities, commonly known as "junk bonds". These are high-risk, high-return investments typically issued by companies that are considered to be of below-investment grade quality. The fund commits to investing at least 80% of its net assets, along with any funds borrowed for investment purposes, into these high yield fixed income securities. Specifically, the investments are channeled into senior secured floating rate loans issued by non-investment grade companies, aiming to provide investors with higher yield returns under the umbrella of senior secured loans. Such investment strategies target returns that compensate for the higher risk associated with non-investment grade companies.

Products and Services

• High Yield Fixed Income Securities

Primarily involves investing in "junk bonds", which are known for their high yield due to the higher risk associated with the issuing companies' creditworthiness. These securities offer investors the potential for higher income in return for the increased risk of investment in companies considered below investment grade.

• Senior Secured Floating Rate Loans

These are the fund's primary investment targets, constituting at least 80% of its portfolio. Senior Loans are secured against the assets of the issuing company, offering a layer of protection in case of default. Their floating rate nature means that their interest rates adjust with market conditions, potentially providing a hedge against inflation and rising interest rates.

• Investment in Non-U.S. Issuers

Up to 30% of the fund's total assets may be invested in securities of non-U.S. issuers. This allows the fund to diversify its investment portfolio geographically, spreading its risk across various economies and markets. Diversification, in theory, can lead to reduced risk of loss as market conditions fluctuate globally.