The fund is recommended to investors with a medium risk profile who seek capital gains in moderate volatility conditions. The fund will invest in EUR denominated fixed-income instruments, for example corporate, municipal, government bonds – guaranteed by member states and/or by their public authorities, treasury bonds, bank deposits and other money market instruments.
The strategic allocation of the fund aims to follow the EFAMA standard for the bond funds category, respectively of at least 80% in fixed-income instruments and maximum 20% in cash and cash equivalents. The fund’s investments in other assets will not exceed 10%. The fund will not invest in shares. A maximum of 20% of the fund’s assets will be available to be invested in convertible bonds. The same limit applies to investments in mortgage backed securities.
Strategic allocation means that the allocation of the fund’s portfolio is done in the category of long-term assets. On the short and medium term the manager can deviate from this strategic allocation to profit from the opportunities that appear on the financial markets.
The fund seeks a higher return than the financial instruments it invests in.