The investment objective of the Sub-Fund is to invest its assets mainly in transferable debt securities (incl. fixed and variable interest rate securities) such as government and corporate bonds but also in equities, admitted to an Official Listing or dealt in on Regulated Markets. The Sub-Fund may invest more than 35% of its assets in US and/or German government debt securities. Additionally, the Sub-Fund may invest up to 30% of its assets in ETFs or units of UCITS which are eligible as per the 2010 Law.
The Sub-Fund could also use (buy or sell) futures/swaps/options on equity indices and interest rate, bonds and foreign exchange worldwide. The Sub-Fund may also gain credit exposure to specific issuers through the use of credit derivatives such as credit default swaps and options on such credit default swaps and to foreign exchange through the purchase of foreign exchange futures contracts. 
Credit derivatives (such as credit default swaps) on public indices such as but not limited to ITRAXX or on single corporate entities may be sold by the Investment Manager to gain exposure in single corporate entities or indices for various economic reasons (such as but not limited to wide bid-offer spreads, bond scarcity or in order to increase market  exposure). Credit default swaps as above may also be bought by the Investment Manager for hedging purposes i.e. to protect against rising credit spreads in individual corporate entities or the market in general. The use of credit default swaps will not materially alter the investment strategy of the Sub-Fund.
Liquidities, undertakings for collective investments, financial derivative instruments and structured financial instruments may be used within the limits described in sections 3.1. and 4. of this Prospectus.
Where the Sub-Fund invests in accordance with the principle of risk spreading in transferable securities or money market instruments issued or guaranteed by an EU member state, by its local authorities or by an eligible state or public international bodies of which one or more EU member states are members, the Sub-Fund may invest 100% of the net asset value in such securities provided that it holds securities from at least six different issues and the value of securities from any one issue must not account for more than 30% of the net asset value of the Sub-Fund.
The Investment Manager will manage the Sub-Fund’s assets with a view of medium volatility of returns for the Sub-Fund; the volatility is expected to be close to 5% annualised.