Prime Global Flexible Income Fund USD

The Prime Global Flexible Income Fund has as its primary objective the generation of income, which will be achieved primarily through investment in debt and debt-related securities via listed exchange traded funds. The Fund may also invest from time to time in global currencies, equity-related securities, listed property stocks and collective investment schemes.

To achieve the investment objective noted above, the fund shall invest in a well-diversified portfolio of income bearing instruments across geographic regions. The portfolio construction methodology is based on a core-satellite approach thereby seeking to achieve an optimal risk-controlled solution while aiming at outperformance in the short to medium term. The fund has a capital preservation focus, with a flexible asset allocation strategy that seeks to minimise drawdown risk. The manager has substantial flexibility, based on the recommendation of the fund sub-advisor, to vary the asset allocation of the fund in such a manner as it deems appropriate and shall not be precluded from continually varying the exposure to income bearing financial instruments across and within geographic regions in order to achieve the stated investment objective of the Fund.

The Fund will predominantly invest its net asset value in debt and debt-related securities issued by corporations and governments in developed as well as emerging markets. The investment universe includes debt securities such as global government bonds, corporate bonds, fixed or floating rate bonds, fixed rate, floating rate and variable rate notes, credit linked notes, convertible bonds, index linked debt securities, debentures, money market instruments, and infrastructure debt. The Fund may invest up to 10% of the Net Asset Value in equity related securities such as preferred stocks, which are listed or traded on recognised exchanges across the globe. The Fund may invest in each of the above asset classes and fixed income segments indirectly through collective investment schemes (CIS), and exchange traded funds (ETF). The Fund may only utilise derivative instruments for efficient portfolio management purposes.

The Fund is predominantly invested in highly liquid income bearing financial instruments and is suitable for investors with short to medium term stable cash flow requirement. The portfolio is also suitable in a multi manager set up. This portfolio typically targets a return in the region of 2% – 3% above US inflation over the medium to longer term.