Category: Open Ended Investment Company

The Share Class is a share class of a Fund which aims to achieve a return on your investment, through a combination of capital growth and income on the Fund’s assets, which reflects the return of the Bloomberg Barclays EUR Corporate Interest Rate Hedged Index, the Fund’s benchmark index (Index). The Index aims to measure the total return of Euro denominated corporate bonds in the Bloomberg Barclays Euro Corporate Bond Index (Underlying Index) while hedging against underlying interest rate risk of Euro corporate bonds in the form of German government bond yield risk. The Underlying Index measures the performance of Euro-denominated, investment grade fixed income (FI) securities (such as bonds) which pay income according to a fixed rate of interest and are issued by industrial, utility and financial companies. The Index hedges against underlying interest rate risk by subtracting from the total return of the Underlying Index, the return on a basket of German government bond futures contracts on a monthly basis. The hedge aims to minimise exposure to movements in the yield of German government bonds. The Share Class, via the Fund, aims to invest so far as possible and practicable in the FI securities that make up the Underlying Index and comply with its credit rating requirements, as well as in German government bond futures contracts that, as far as possible track the hedging methodology of the Index. If the credit ratings of the FI securities are downgraded, the Fund may continue to hold these until they cease to form part of the Index and it is practicable to sell the position. The German government bond futures contracts are weighted appropriately according to the duration of the FI securities held in the Index on a monthly basis. No adjustment is made to the hedge during the month to account for price movements of FI securities of the Index. The Fund uses optimising techniques to achieve a similar return to its Index. These may include the strategic selection of certain securities that make up the Index or other FI securities which provide similar performance to certain constituent securities. These may also include the use of FDIs (i.e. investments the prices of which are based on one or more underlying assets). FDIs may be used for direct investment purposes. Apart from hedging German government bond yield exposure, the use of FDIs is expected to be limited for this Share Class. The Fund may also engage in short-term secured lending of its investments to certain eligible third parties to generate additional income to off-set the costs of the Fund. Recommendation: This Fund is suitable for medium to long term investment, though the Fund may also be suitable for shorter term exposure to the Index. Your shares will be distributing shares (i.e. income will be paid on the shares semi-annually). Your shares will be denominated in Euro, the Fund's base currency.