The fund's assets are chiefly invested directly and indirectly in bonds and money-market instruments denominated in local currencies by countries that are in a period of transition from developing countries to industrial nations, mainly in the regions Latin America, Asia, Eastern Europe, and Africa. Generally, local-currency investments are not hedged. The bonds involve a certain credit risk.
Investment is made primarily in bonds issued by or guaranteed by states. Assets may also be invested in instruments issued by other issuers provided these instruments are denominated in local emerging-market currencies. Furthermore, assets may be invested in instruments denominated in currencies other than local currencies, provided the return on those instruments is related to the development in one or more local currencies or emerging-market bond yields. Part of the fund's assets may be placed on deposit with financial institutions.
The fund may invest up to 10% of its assets in units in other umbrella funds, individual funds and investment institutions.
In principle, local currency investments in the emerging markets are not hedged. In principle, investments in other currencies will be hedged to EUR. The fund's benchmark is J.P. Morgan GBI EM Diversified Unhedged - EUR.
The objective of the portfolio management is continuously to generate a risk-adjusted return which is at least in line with the risk-adjusted return of the fund’s benchmark.
The return is measured over the time horizon which the typical investor in the fund should have as a minimum according to the paragraph on ‘The typical investor’.
The portfolio return is stated after costs of active portfolio management.
The fund may use derivative financial instruments.
JPM GBI-EM Global Diversified Composite
The benchmark has applied since: 01.09.2013