The investment objective is to obtain a 4%-plus annualised return after fees over an eight-year investment horizon, i.e., from the Fund’s launch date to 31 December 2025.
The portfolio will be invested primarily in euro-denominated bonds, other debt securities and money market instruments issued by governments or private or public entities of OECD countries. The fund may invest up to 20% of its assets in securities from non-OECD countries (Asia ex-Japan, Eastern Europe and Latin America). A minimum of 51% of the securities comprising the portfolio will be denominated in euros. The manager may invest up to 100% of the fund’s assets in fixed-income securities in the form of traditional bonds and up to 10% in convertible bonds.
The rating-based allocation among various issuers shall be as follows:
– from 0% to 100% of net assets in speculative high-yield bonds (i.e., with ratings below BBB- (Standard & Poor’s and Fitch) or Baa3 (Moody’s) or the equivalent based on the investment management firm’s assessment);
– from 0% to 100% of net assets in non-rated securities.