Diversified Bond Opp. 2025 J1
UMushroom community rating:
0.00
0 votes
No rating yet
NegativeNeutralPositive
General Objective
The objective of this fund is to achieve an annualized performance of 3.5% by the maturity date of December 31, 2025. The management objective takes into account the ongoing charges, the estimated default risk, and the cost of currency hedging. It is based on market assumptions determined by the management company and does not constitute a promise of return.
Fund Exposure
The fund aims to achieve its objective through active and discretionary management primarily using corporate bonds. It invests mainly in high-yield speculative bonds or those considered of equivalent quality by the management committee, which implies a potentially high credit risk. The portfolio is primarily composed of euro-denominated securities, with other freely convertible currencies from developed countries also used. The fund's currency exposure is kept below 5% after hedging. The management strategy relies on in-depth fundamental analysis of issuers and constructing a diversified allocation from individually selected securities based on their own merits.
Risks
The fund's exposure to high-yield speculative bonds and potentially high credit risk poses a risk to investors. Additionally, the fund's sensitivity to interest rate changes may fluctuate within a range of 0 to 7 and is expected to decrease as the fund approaches its maturity date. The fund may also invest in time deposits up to 50% of its assets. By December 31, 2025, the fund will transition to a money market strategy referencing the average money market rate, subject to approval by the AMF, with the option to adopt a new investment strategy, dissolve, or merge with another investment fund.