A bond rated ‘BB’ or lower by an agency because of its high default risk. Its yield tends to be higher than a better rated bond to compensate investors for the risk.
This is calculated for funds paying dividend distributions. It reflects distributions declared over the past 12 months as a percentage of the net asset value per share/mid-market unit price as at the date shown. It does not include any initial sales charge and investors may be subject to tax on their distributions.
Where the fund’s expenses are all or part charged to capital (currently Investec UK Special Situations Fund), this has the effect of increasing distributions (which may be taxable) and constraining the fund’s capital performance to an equivalent extent.