The investment objective is to outperform the benchmark index - the Barclays Global Contingent Capital Total Return Index hedged in EUR - expressed in euros, hedged against foreign exchange risk with the euro as the base currency, net of charges, assuming reinvestment of net dividends or coupons, over the recommended investment period of five years.
To achieve this investment objective, the Fund will beactively managed and mainly invested in subordinated debt (which is of higher risk than senior or secured debt) or any securities not deemed to be ordinary shares issued by financial institutions. The Fund is managed by combining a top-down approach (which first looks at general economic and market trends before deciding in which geographical areas and securities to invest) and a bottom-up approach (which first looks at issuers' creditworthiness and the quality of individual securities), thus incorporating the regulatory conditions applying to this asset class. The Fund's modified duration is between 0 and 8. The Fund is invested only in bonds or securities of issuers the registered offices of which are established in OECD-member countries and/or in securities listed on a financial market of one of these countries. The Fund is invested only in bonds that are traded in euros, US dollars, pounds sterling, or in any OECD currency. To build his portfolio, the manager conducts his own assessment of bonds or securities not deemed to be ordinary shares. He also refers to agency ratings but does not rely on them solely and mechanically.