The Sub-fund will invest at least 70% of its assets under management in fixed income securities with a duration of less than five years. It may invest in non-investment grade bonds (high yield bonds) not exceeding 15% of the Sub-Fund’s net assets.
The Sub-fund’s investments in unrated debt securities will not exceed 10% of its net assets.
The Sub-Fund may further achieve its investment objective by investing up to 10% of its total net assets:
- in Target Funds provided that the maximum level of total management fees applying to both the Sub-Fund and the Target Funds shall not exceed 4.5% (four-point-five percent), and/or
- in another sub-fund(s) of the Fund (a “Target Sub-Fund(s)”) within the limits and conditions set forth in the section 9. Investment restrictions of the Prospectus. Subscription and redemption fees, if any, will not be charged to the Sub-Fund when investing in a Target Sub-Fund(s).
Investments in Target Funds and Target Sub-Funds combined will not exceed 10% of the total net assets of the Sub-Fund.
The Sub-Fund will not directly invest in asset-backed securities (“ABS”), mortgage-backed securities (“MBS”) or contingent convertible capital (“CoCos”), indirect exposure may occur from the investment through the Target Funds; such indirect exposure to ABS and MBS will not exceed a limit of 10% of the Sub-Fund’s assets.
The Sub-Fund may also invest in Ancillary Liquid Assets up to 20% of its net asset.
Under exceptional circumstances and in the best interest of the shareholders, the Sub-Fund may be invested up to 100% of its net assets in Ancillary Liquid Assets on a temporary basis.
The Sub-Fund’s portfolio invests, directly and indirectly, at least 80% of its assets, net of cash and ancillary liquid assets, in companies and countries with an ESG rating equal to or higher than B. The weighted average ESG rating of the portfolio, net of cash and ancillary liquid assets, cannot be lower than BBB. The Sub-Fund’s portfolio does not invest in companies with ESG rating below B.
Within the 80% of the Sub-fund allocated to companies and countries aligned with environmental and social characteristics, 5% will be in environmentally sustainable investments aligned with the first two objectives of the EU taxonomy, climate change mitigation and climate change adaptation.
For further information on the investment strategy, please refer to the Sub-Fund’s Investment Policy section of the present Prospectus.