The fund primarily invests in a diversified portfolio of worldwide 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). We actively manage the fund and combine our analysis on specific issuers of corporate bonds with a broader market analysis to construct the optimal portfolio. We aim to exploit differences in returns of these issuers within sectors and differences in returns between regions, sectors and different quality segments (ratings). Therefore the fund positioning can materially deviate from the benchmark.

The differences in high yield returns within a sector can be significant; we therefore believe that a strong focus on issuer selection and issuer diversification needs to be a crucial part of the high yield investment process. For risk management purposes, issuer deviation limits are maintained relative to the benchmark. Measured over a period of several years we aim to beat the performance of the benchmark 70% Bloomberg Barclays US High Yield, 30% Bloomberg Barclays Pan-European High Yield, 2% issuers capped ex financial subordinates hedged (EUR). The benchmark is a broad representation of our investment universe. The fund can also include bonds that are not part of the benchmark universe. 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.