Cartesio Income

The Sub-Fund seeks to preserve capital over time by using an active and flexible asset allocation across a diversified range of asset classes. Equity exposure is limited to a maximum of 40% of assets but can vary widely, within this limit, depending on the Investment Manager’s view about market risk. The Sub-Fund may invest up to 100% of its assets in fixed income instruments (both corporate and government debt), money market instruments and cash deposits. The total exposure in subordinated debt shall not exceed 50% of assets and exposure in contingent convertible bonds shall not exceed 30%. It may invest in securitizations. The average duration of the portfolio is not fixed. The Sub-Fund shall invest in investment grade government and corporate debt. However, it can invest up to 30% of the sub-fund’s assets in fixed income securities below investment grade. Exposure to investments outside Europe is limited to 40% of the Sub-Fund. Exposure to emerging market securities is limited to 20% of the Sub-Fund. Non-hedged foreign exchange exposure may not exceed a maximum of 20% of the Sub-Fund’s net assets. The Sub-Fund can invest in credit entities’ deposits on demand or with a term lower than one year whenever the credit entity has its registered office in a State member of the European Union and has a high credit rating (at least “A-” or equivalent). More than 35% of the Sub-Fund’s assets can be invested in securities issued or guaranteed by a member State of the European Union, an Autonomous Region, a Local Entity, International Bodies which Spain is member of, and States with a credit rating not lower than that of the Kingdom of Spain. The Sub-Fund may invest no more than 10% of its net assets in other UCI assets, which in turn do not invest more than 10% of their net assets in other UCIs. The Sub-Fund may enter into derivatives for hedging and investment purposes. Derivatives for investment purposes shall only entered into through exchange traded derivatives on an occasional basis and on a reduced manner to efficiently gain exposure to issuers, sectors or geographical markets. Likewise, the Sub-Fund may enter, for hedging purposes, into transactions in OTC markets. Dividend income from this fund is reinvested. The investment objective of the Sub-Fund is to outperform on a risk adjusted basis the Bloomberg Series-E-Euro Govt 7-10 year bond index in Euros (BERPG4 Index). This means obtaining a Sharpe ratio higher than the index. The Sub-Fund is actively managed being the Index used for reference purposes only.