FIXED INCOME•SINGLE SECTOR
Symbol
GSUMNSP LX
ISIN
LU0429683740
Overview
Objective
The Fund seeks to provide income and capital growth over the longer term.The Fund seeks to achieve its objective by investing in US mortgage and asset backed securities.
Risk Profile
- Contingent Convertible (“Coco”) Bond Risk investment in this particular type of bond may result in material losses to the Portfolio based on certain trigger events. The existence of these trigger events creates a different type of risk from traditional bonds and may more likely result in a partial or total loss of value or alternatively they may be converted into shares of the issuing company which may also have suffered a loss in value.
- Counterparty risk a party that the Portfolio transacts with may fail to meet its obligations which could cause losses.
- Credit risk the failure of a counterparty or an issuer of a financial asset held within the Portfolio to meet its payment obligations will have a negative impact on the Portfolio.
- Custodian risk insolvency, breaches of duty of care or misconduct of a custodian or subcustodian responsible for the safekeeping of the Portfolio's assets can result in loss to the Portfolio.
- Derivatives risk derivative instruments are highly sensitive to changes in the value of the underlying asset that they are based on. Certain derivatives may result in losses greater than the amount originally invested.
- Exchange rate risk changes in exchange rates may reduce or increase the returns an investor might expect to receive independent of the performance of such assets. If applicable, investment techniques used to attempt to reduce the risk of currency movements (hedging), may not be effective. Hedging also involves additional risks associated with derivatives.
- High yield risk high yield instruments, meaning investments which pay a high amount of income generally involve greater credit risk and sensitivity to economic developments, giving rise to greater price movement than lower yielding instruments.
- Interest rate risk when interest rates rise, bond prices fall, reflecting the ability of investors to obtain a more attractive rate of interest on their money elsewhere. Bond prices are therefore subject to movements in interest rates which may move for a number of reasons, political as well as economic.
- Liquidity risk the Portfolio may not always find another party willing to purchase an asset that the Portfolio wants to sell which could impact the Portfolio's ability to meet redemption requests on demand.
- Market risk the value of assets in the Portfolio is typically dictated by a number of factors, including the confidence levels of the market in which they are traded.
- Operational risk material losses to the Portfolio may arise as a result of human error, system and/or process failures, inadequate procedures or controls.
- Mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”) risk the mortgages backing MBS and assets backing ABS may be repaid earlier than required, resulting in a lower return.
Fund Data
Performance
Allocations
Management Team
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