The Responsible Horizons Strategic Bond Fund seeks to generate a return through a combination of income and capital returns, whilst taking environmental, social and governance (“ESG”) factors into account.

The Responsible Horizons Strategic Bond Fund invests primarily in securities either denominated in or hedged back to sterling with the freedom to invest across global fixed income markets, as it seeks to generate an attractive level of return whilst taking ESG factors into account.
 

Dynamic allocation: Asset class performance rankings shift frequently. By aiming for a core allocation to investment grade assets, with flexibility to allocate dynamically across other global markets – including government bonds, high yield, emerging market debt and asset-backed securities – the Fund can pursue opportunities across a wide opportunity set.
 

Employing asset class experts: Insight has a well resourced fixed income team, with specialist teams focused on areas including investment grade and high yield credit, emerging market debt, sovereign debt and asset-backed securities.

Managed by a market-leading responsible investor: Insight has a long-established focus on responsible investment, with ESG factors having been fully integrated into the investment process and credit analysis for many years.

Commitment to engagement: where a company demonstrates a deteriorating ESG profile, Insight will consider engaging with stakeholders with a view to influencing their future behaviour. If no improvement is observed, the Fund will reassess its holdings in the bonds.

Prime is Insight Investment’s proprietary environmental, social and governance (ESG) rating system, which uses extensive global data and in-depth analysis to highlight key ESG risks.

The Fund’s portfolio managers and analysts use Prime corporate ESG and climate risk ratings, and Prime sovereign ESG risk ratings, to support their investment decisions, inform their engagement with debt issuers, and to build portfolios with sustainability goals.

The ratings generated by Prime will help to guide the Fund’s investments in line with its stated ESG criteria, with ratings defining whether companies or sovereigns are best-in-class or worst-in-class, and indicating deterioration or improvement with regard to ESG issues.

Insight embeds ESG risk analysis across its investment processes: every portfolio manager and analyst is expected to take ESG factors into account where they are material and relevant to the investments they oversee.

* CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

The value of investments can fall. Investors may not get back the amount invested. Income from investments may vary and is not guaranteed.

Benchmark: The Fund will measure its performance against the UK Investment Association Sterling Strategic Bond Sector average as a comparator benchmark (the “Benchmark”). The Fund will use the Benchmark as an appropriate comparator because it represents a broad range of similar Sterling denominated bond funds that invest in corporate bonds.

The Fund is actively managed, which means the Investment Manager has discretion over the selection of investments, subject to the investment objective and policies as disclosed in the Prospectus.

Objective/Performance Risk: There is no guarantee that the Fund will achieve its objectives.

Currency Risk: This Fund invests in international markets which means it is exposed to changes in currency rates which could affect the value of the Fund.

Derivatives Risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the Fund can lose significantly more than the amount it has invested in derivatives.

Changes in Interest Rates & Inflation Risk: Investments in bonds/ money market securities are affected by interest rates and inflation trends which may negatively affect the value of the Fund.

Credit Ratings and Unrated Securities Risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the Fund.

Emerging Markets Risk: Emerging Markets have additional risks due to less-developed market practices.

CoCo’s Risk: Contingent Convertible Securities (CoCo’s) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.

Sustainable Funds Risk: The Fund follows a sustainable investment approach, which may cause it to perform differently than funds that have a similar objective but which do not integrate sustainable investment criteria when selecting securities. The Fund will not engage in stock lending activities and, therefore, may forego any additional returns that may be produced through such activities.

Counterparty Risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the Fund to financial loss.

A complete description of risk factors is set out in the Prospectus in the section entitled “Risk Factors”.

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