Sparinvest SICAV Global Ethical High Yield EUR R (SPVGHER.LX)

Overview

The Sub-Fund is designed to offer investors the potential for positive long-term returns through investment primarily in High Yield Corporate Bonds. As a global fund, its investment portfolio can span across all regions, including the possibilities within emerging markets. The strategy incorporates a significant allocation towards High Yield Corporate Bonds, constituting at least two-thirds of its total net assets, while also maintaining the flexibility to diversify its investments to a lesser extent in other financial instruments. The goal is to achieve a balance of risk and reward that suits investors seeking to increase their portfolio value over time.

Products and Services

• High Yield Corporate Bonds

  At the core of its investment strategy, the Sub-Fund allocates at least two-thirds of its total net assets in High Yield Corporate Bonds. These bonds, typically issued by companies with lower credit ratings, offer higher interest rates to compensate for an increased risk of default. The focus on High Yield Corporate Bonds is aimed at securing higher income for investors, balancing the risk with the potential for a significant return on investment.

• Global Investment Reach

  The Sub-Fund maintains a global investment strategy, enabling it to diversify its portfolio by including bonds from issuers located in various regions around the world, including emerging markets. This global approach helps spread investment risk and tap into various economic dynamics, potentially leading to better risk-adjusted returns for investors.

• Contingent Convertibles Investment

  A smaller portion of the portfolio (less than 10% of the total net assets) may be allocated to contingent convertibles. These are complex debt instruments that can be converted into a pre-specified number of the issuer's shares, usually in the event of a specific trigger, such as the issuer's capital falling below a certain level. This investment avenue provides the Sub-Fund with an opportunity to benefit from both fixed-income and equity-like returns under certain conditions.

• Other Fixed Income Securities and Liquid Assets

  Aside from high yield bonds and contingent convertibles, the Sub-Fund may invest to a limited extent in other types of fixed income transferable securities not primarily covered in the High Yield segment, as well as in liquid assets and regularly traded money market instruments with a residual term of up to 12 months. These investments provide the Sub-Fund with liquidity and flexibility, enabling it to respond to market changes and take advantage of emerging opportunities.