Objectives and Investment Policy
The fund is actively managed, which means that the portfolio manager takes active, independent investment decisions. The long term objective of the fund is to exceed the returns of the underlying market, defined as the benchmark index.
Fund returns are determined by how the fund's investments in interest-bearing instruments increase or decrease in value. The fund invests in interest-bearing securities issued in the European credit market, i.e., securities issued by European companies (legal residence in Europe) and other interestbearing securities issued in European currency. A maximum of 15% of the portfolio’s market value may be invested in securities from issuers outside of Europe issued in European currency. The fund’s base currency is Norwegian crowns (NOK). A maximum of 5% of the fund’s value may have exposure to currency risk. The fund may also invest in futures based on US government bonds for the purpose of managing interest rate and credit risk.
The fund’s assets may be invested in interest-bearing financial instruments with a minimum rating of BB- from Standard &, Poor’s or a corresponding rating of Ba3 from Moody’s. In the event the financial instrument lacks an official rating and it is not a subordinated debt, the issuer’s official rating shall be used. If the official rating is not available, the fund will use an equivalent creditworthiness that has been assessed internally. The fund shall have a modified duration between zero and three. The credit duration will be limited to five.
International norms and guidelines with regard to the environment, social responsibility and corporate governance are taken into consideration within the scope of the fund’s investment focus. The fund applies an exclusion strategy in companies active within the fossil fuels, war materials, tobacco,
cannabis, alcohol, commercial gambling and pornography areas/sectors. The fund may invest in sustainable, social and green bonds issued by companies involved in power generation from fossil fuels.
The fund may invest in derivative instruments as part of its investment focus. The fund may invest a maximum of 10% of the fund capital in fund units.
We compare the fund's performance with Solactive Euro HY BB 1-5 Y ex. Fin Hedged NOK TR. As the fund is actively managed the performance will over time deviate from this index.
The shareclass does not distribute dividends. All income is reinvested in the fund. Normally, you may purchase and sell fund units every banking day.
Additional information about the sustainability work, the share class designation in parentheses and the management in relation to the funds benchmark index and risk level, may be found in the prospectus.
Recommendation: This fund may not be suitable for investors who plan to withdraw their money within 2 years.