This is an investment grade credit portfolio, but we have the flexibility to allocate up to 30% to high yield securities and government bonds. This allows us to take on more risk when the opportunities look attractive, or reduce risk in periods where we don’t feel it is justified.
We also have no duration restrictions, which means we can mitigate risk or take advantage of opportunities, depending on the prevailing interest rate environment.
The investment concerns the acquisition of units in an actively managed fund and not in a given underlying asset.