Corentera Funds SICAV - Low Risk Bond Strategy - CR EUR ACC Fonds

The sub-fund seeks to maximise long-term capital growth by investing primarily in fixed income securities issued by corporate and government entities that are mainly domiciled in major developed markets across the world, while at the same time only investing in lower risk securities within this universe. However, the fund will target to have a low risk profile when measured on volatility and maximum drawdowns. The sub-fund will target a long-term volatility of less than 3% p.a.. The sub-fund aims to achieve its investment objective through direct investments in fixed income securities traded on Regulated Markets or on markets that are regulated, operate regularly and are recognised and open to the public. In addition, the sub-fund can invest into eligible ETFs based on fixed income securities within global developed and emerging markets. As the portfolio seeks out to be low risk in nature, at least 90% of the nets assets of the sub-fund (excluding cash) should consist of Investment Grade securities (rated BBB- or above by Standard & Poor's or Fitch or Baa3 or above by Moody's). There will no investment by the sub-fund in securities below Investment Grade or non-rated securities. The portfolio will target an average rating of A- or above and an average duration of 3 years or below.The sub-fund may also invest in forward currency contracts, Exchange traded Futures and in plain vanilla option strategies (such as selling or buying of call options or put options) either as a hedge or for efficient portfolio management. The sub-fund will have recourse to securities lending for the purposes of efficient portfolio management up to a maximum of 50% of the Net Asset Value of the sub-fund. Under normal circumstances, it is generally expected that the principal amount of such transactions will not exceed 30% of the Net Asset Value and remain within the range of 5% to 30% of the Net Asset Value.