The Sub-Fund seeks medium- to long-term capital growth with an absolute return approach. Depending on market conditions, the fund will change the weights of each asset class in its portfolio, according to their relative fundamental valuation attractiveness. The fund will be mainly invested in bonds. Issuers are picked with a bottom-up approach, based on fundamental valuation parameters, solid issuer’s balance sheets and solvency ratios. Liquid issuers with relative rich yield are preferred. To achieve its investment objective, and under normal conditions, the Sub-Fund will be mainly invested in:
- Bonds, including high yield bonds up to 70% of the portfolio exposure to bonds, fixed or floating rates, convertible bonds, zero-coupons, government, treasury bonds, without limits of duration and geographical restriction. Cocos will not represent more than 15% of the bond component.
- Money market instruments or liquid assets.
The Sub-Fund may also invest up to a maximum of 49% of its net assets:
- Directly or indirectly (through derivatives, especially options on stock markets, including sector indexes) in equities and equity-linked instruments (such as warrants for example) and Structured Products as certificates.
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’s portfolio invests at least 80% of its assets, net of cash, ancillary liquid assets and derivatives, 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, ancillary liquidity assets and derivatives, cannot be lower than BBB.