NN (L) Global Bond Opportunities - X Cap EUR (hedged)

10/08/2022
185,23
Investment Scope

The fund primarily invests in a diversified international portfolio of government- and corporate bonds of high quality (with a rating of AAA to BBB-), denominated in various currencies. Other than directly investing in investment grade government- and corporate bonds, the fund may also invest in corporate bonds with a higher risk and therefore with a higher interest rate (so called high yield bonds, with a quality rating lower than BBB), or bonds issued and/or denominated in the currencies of devel-oping countries ("emerging markets") in Latin America, Asia, Central Europe, Eastern Europe and Africa and/or investments in foreign currencies. The fund uses global active management to anticipate changes of the level of government bond yields, the yield curve, FX rates and credit spreads based on fundamental- and quantitative analysis.

The fund positioning will therefore materially deviate from the benchmark. Measured over a period of several years we aim to beat the performance of the benchmark Bloomberg Barclays Global Aggregate hedged (EUR). The benchmark is a broad representation of the investment grade global bond universe. For risk management purposes, bond and country deviation limits are maintained relative to the benchmark. For this specific hedged share class we apply a currency  hedging strategy. By hedging our currencies we aim to avoid currency risks for euro (EUR) investors. We hedge all currency risks in the benchmark of the sub-fund to the reference currency of this share class (EUR). The risks of exchange rate fluctuations against the EUR, related to over- and underweight positions in the portfolio versus the benchmark of the sub-fund, remain in this share class. A currency hedge consists of taking an offsetting position in another currency. You can sell your participation in this fund on each (working) day on which the value of the units is calculated, which for this fund occurs daily. The fund does not aim to provide you with a dividend. It will reinvest all earnings.

 

 

 

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Past returns do not predict future returns
Historical NAV
Calendar Year Performance (NET %)
Cumulative Performance (ΝΕΤ %)
EUR1y3y5y
Fund-14,34-13,44-20,65
Share Class Benchmark-9,06-5,80-1,83

Reference Date 31.07.2022
Προφίλ Κινδύνου
1234567

Historical data, such as is used for calculating this indicator, may not be a reliable indication of the future risk profile of this fund. There is no guarantee that the risk indicator will remain unchanged, it may shift over time. The lowest category of risk does not mean that the investment is riskfree. This fund is in this specific risk category because of the behaviour of the product during the measuring period. The overall market risk, taking into account past performances and future potential evolution of the markets, associated with bonds used to reach the investment objective is considered high. These financial instruments are impacted by various factors. These include, but are not limited to, the development of the financial market, the economic development of issuers of these financial instruments who are themselves affected by the general world economic situation and the economic and political conditions in each country. Expected credit risk, the risk of failure of the issuers of underlying investments is high. The Sub-Fund’s liquidity risk is set to medium. Liquidity risks may arise when a specific underlying investment is difficult to sell.

Moreover, currency fluctuation may impact highly the Sub-Fund’s performance. No guarantee is provided as to the recovery of the initial investment. Investment in this fund involves an extensive use of derivative instruments which might result in an increase of the importance of losses and gains, which in turn could result in greater fluctuations in the value of the fund. Investments through Bond Connect are subject to specific risks, including but not limited to, trading restrictions, currency risk and regulatory risk. Investors are advised to familiarize themselves with the risks of this market as outlined in the prospectus. Hedging share classes, a method to try to manage specific currency risk, may lead to additional credit risk and to residual market risk depending on the effectiveness of the hedging performed.

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Practical Info
ISIN Code:
LU0546921965
Currency:
EUR
Unit Class:
X CAP Hedged
Asset Class:
Fixed Income
Region:
Global