Digging into this a bit more, it's a bit confusing, but most of these bonds seem to be local currency denominated rather than U.S. dollar denominated. But then they've got some sort of partial currency hedging with derivatives -- it's all rather confusing.
You can get some very high YTMs in local currencies. For example, Ghana's currency is called the Cedi. The annualized consumer inflation rate in Ghanaian Cedi terms was 9.3% in March, 2019, and it looks like the inflation rate is wobbling between 9 and 10% eyeballing the past year. The YTM on Cedi-nominated bonds have to be higher than the inflation rate (and inflation rate expectations), otherwise nobody would buy the bonds.
The fund manager may be slightly clever here from a marketing point of view. Just insert some Ghanaian Cedi-denominated bonds into your fund, and you too can jack up the Yield to Maturity figure!
Let's see what else we can find.... OK, Mexican peso inflation is running in the 4 to 5% range. Brazilian real inflation is running at about 4.5%. Indonesia at about 3 to 3.5% (a little less very recently). Argentina peso inflation at...whoa, OK, 50+%. (Nearly 8% of this unit trust is invested in Argentine bonds.) Yeah, there you go, that explains it. That's how you're getting a phat YTM.
Translated back into a major currency, or into a quality currency such as Singapore dollars (see what I did there?), that YTM is basically meaningless. Over time you'll be able to buy more and more and more Argentine pesos for every Singapore dollar -- the exchange rate will adjust. Sure enough, that's exactly what you've seen with that unit trust. The nearly 10% YTM has translated back into Singapore dollar terms as a fairly ordinary (and expensive, due to the management fees) high yield sovereign bond fund, basically. Apparently with a little currency hedging which softens the volatility a bit, and with more cost.
Run away. This is not worth your time or attention.
