The fund policy seek securities which can consistently deliver income payments, one of which is high yield/non-investment grade bonds.
The fund currently invest in non-investment grade and unrated bonds at a total of 16.6% (see below). Other than the 25-75% flexible allocation between equities and fixed income, there is no limit on the allocation of non-investment grade and unrated bonds. Therefore, it is necessary for this fund to be an AI fund, as it will normally have more than 15% allocation to non-IG and unrated positions.
Regards,
Ladawan