UniInstitutional Euro Covered Bonds 4-6 years Sustainable

The main objective of this bond fund is to achieve market-competitive returns while also aiming for long-term capital growth. The fund must consist of at least 51% of bonds issued by European entities, denominated in Euro and partially covered by collateral (known as "Covered Bonds"). The average remaining maturity of the assets in the fund should be between 4 and 6 years. The fund also considers ethical, social, and environmental criteria when selecting issuers.

The fund primarily invests in European Covered Bonds, with the option to allocate up to 49% of the fund's assets in money market instruments or bank deposits. Derivatives may be used for investment and hedging purposes. The investment strategy is based on a benchmark (50% iBoxx EUR Covered 3-5 / 50% iBoxx EUR Covered 5-7) with the goal of outperforming its performance. The fund management has the flexibility to deviate significantly from the benchmark through active over- or underweighting of assets.

Investors should be aware that the fund's performance may deviate from the benchmark due to active management decisions. Additionally, investments in assets outside the benchmark are possible, which may introduce additional risks. The fund's ability to outperform the benchmark may be limited by the extent of deviation allowed from the benchmark. Investors should also consider the possibility of temporary suspension or restriction of redemptions under exceptional circumstances, as determined in the best interest of all investors.

https://institutional.union-investment.de/kompetenzen/assetklassen/renten/covered-bonds