Carnegie High Yield

The sub-fund aims to generate a long-term capital growth by primarily investing in a diversified portfolio of interest bearing instruments (fixed income) of companies whose products or services contribute to attaining one or more of the 17 UN Sustainable Development Goals (‘SDGs’) mainly composed of High Yield Bonds and Floating Rate Note instruments of Nordic Corporate Bonds. In order to achieve its objectives, the sub-fund shall invest its assets in fixed income securities, convertible bonds, fixed income related instruments, preferred shares and Payment-in-Kind (PIK) bonds of corporates having a higher credit risk and issued predominantly by companies that are domiciled or operating in the Nordic Markets (i.e. Sweden, Denmark, Norway, Finland and Iceland). The sub-fund may invest up to 50% of its assets in listed instruments that are quoted on other regulated markets outside EU. The sub-fund may invest in Investment Grade Income instruments. The sub-fund may also invest in shares and similar instruments and/or holds company shares as a result of transactions involving securities or the conversion of convertible bonds. The sub-fund may also invest up to 20% of its assets in Contingent Convertible Bonds (Coco’s) and up to 10% of its assets in Asset-Backed Securities and Mortgage-Backed Securities (ABS’ or MBS’). The sub-fund may use financial derivatives instruments (i.e. FX Forwards or Basis Swaps) to hedge against unfavourable Foreign Exchange, Interest Rate and Credit risks. From time to time, the sub-fund may invest a substantial portion of its portfolio in cash or cash related instruments.