Objective & Strategy

The investment objective of the Sub-Fund is to provide a high level of income together with long-term capital growth. The Sub-Fund seeks to achieve its objective by investing in a diversified portfolio, primarily consisting in European securities (debt and equity) issued by European governments or companies, as defined in the prospectus. In particular, at least 50% of the NAV will be invested in debt securities. Up to 30% of the NAV of the Fund may be invested, in aggregate, in cash, cash equivalents, money market instruments, equity and equity-related securities issued by companies or in convertible debt of issuers worldwide. The Sub-Fund may also invest up to 30% of its NAV in contingent convertible bonds and it may be exposed for up to 20% of its NAV in securities which are either in default or deemed to be at high risk of default (“Distressed Securities”). The Sub-Fund may use derivatives of the types and for the reasons outlined in the prospectus. The Sub-Fund may also use total return swap (“TRS”) for max 30% NAV, under normal circumstances. The Sub-Fund may invest up to 10% of its assets in shares or units of open-ended UCIs and UCITS. There can be no guarantee that the investment objective will actually be attained. Investors can request to buy back their Units on any business day in Luxembourg. Investors can ask for full or partial repayment of the Units held. Benchmark Information: 45% ICE BoFA Euro High Yield Index (Total Return) 35% Bloomberg Pan-European Corporate Index EUR-Hedged (Total Return) 20% MSCI Europe ex UK Index (Net Total Return) (the “Benchmark”). The Sub-Fund is an actively managed mixed asset fund with flexible exposure to both equities and debt, where the Benchmark is used for comparison purposes. As the Benchmark is a suitable proxy for the investment strategy, it is likely that some of the holdings/issuers of the Sub-Fund are also represented in the Benchmark. The Investment Manager has broad discretion to deviate materially from the weightings and therefore it is expected that over time the risk and return characteristics of the Sub-Fund may diverge materially from the Benchmark.

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