The objective of this fund is to achieve above-market performance. Dividends are normally distributed to investors each year.
The fund invests mainly in below investment grade (high yield) corporate bonds from anywhere in the world, including emerging markets, that are denominated in Euro (EUR) and issued by companies that have a positive or an improving Environment, Social and Governance (ESG) profile.
Specifically, the fund invests at least two-thirds of net assets in bonds and other debt instruments that are traded on a regulated market and are denominated in EUR. While the fund invests mainly in below investment grade bonds, it may invest up 50% of net assets in bonds with a minimum rating of Baa3/BBB- (or similar).
In addition to the sustainable investment policy that applies to all funds in the SICAV, this fund seeks to minimise or avoid exposure to companies whose revenues mainly originate from sectors such as controversial weapons, tobacco, alcohol, pornography, fossil fuels and gambling.
In actively managing the fund's portfolio, the management team selects securities that appear to offer superior investment characteristics, using both financial and ESG criteria to assess risks and opportunities. The fund generally expects that its holdings, and therefore its performance, may differ significantly from those of the benchmark.
The fund may use derivatives for hedging and efficient portfolio management, as well as for investment purposes.
The total duration, including cash, is the benchmark duration plus/minus 2 years. The duration indicates among others the price risk of the bonds in which the fund invests. The lower the duration, the more price stable the bonds, if interest rates change.
Recommendation: This fund may not be appropriate for investors who plan to withdraw their money within 3 years.