Standard qualification: I am not a professional adviser (the "trainee" part for my handle is there for good reason) nor do I know anything about your personal circumstances, risk tolerance etc etc etc. The following comments are based on how I would evaluate a potential investment in this fund for my own portfolio. I have not drawn a conclusion.
1. Barings is a large established financial institution and the fund is incorporated in Ireland which is a well regulated financial centre – I am not giving my money to a relatively unknown entity with limited resources operating out of an offshore tax haven.
2. the portfolio consists of bonds which are "senior" and "secured" and there are 136 bonds in the portfolio so it appears to be well diversified and the risk of a catastrophic default is low. However, I only recognised 2 of the top 10 holdings so suspect that many of the bonds in the fund are clinging to the bottom end of the investment grade ratings or have been cherry picked from lower rated issues. Further due diligence is needed here.
3. the fund pays distributions quarterly which is good for those needing income.
4. the track record is adequate and annualised performance numbers are acceptable for a bond fund of this nature. However, I would expect lower returns going forward - the track record period began when interest rates were higher than now meaning the fund has benefitted from bond prices increasing and higher initial yields than can be obtained now. In this context the short duration is also relevant.
5. expense ratio is around 0.42% (there were two numbers in the links for this - I have used the higher one). As interest rates and returns fall, this will become an increasingly large drag on performance.
6. I saw no mention of front end loads, trailing fees etc. Nor was the spread between investing and exit prices immediately obvious on the face of the links. If there are any, that would be a killer (possibly unless I was intending to be in there for a long time). I need to know what it will cost me to get in and out of the fund within say, a year or whatever minimum time frame I am prepared to commit for. The net return after all these costs has to be well above what I could get on a bank deposit to consider investing.
7. I would want to look at some other bond funds to compare costs, duration etc.
8. I want to know what the financial adviser is getting out of this.