# Investment Policy
The Fund will invest at least 70% of its Net Asset Value in debt securities, either directly or indirectly through derivative instruments.
The debt securities in which the Fund may invest may: (i) be issued or guaranteed by governments (or their sub-divisions, municipalities or agencies) or corporate entities located anywhere in the world (including, without limit, in emerging markets); (ii) have fixed, variable or floating rates of interest; (iii) have any maturity including short-term and long-term, or may have no set maturity; (iv) be rated investment grade, sub-investment grade or unrated; and (v) be denominated in any currency (non- Euro currency exposure may be hedged).
The Investment Manager’s investment process includes consideration of the following environmental and social characteristics ("ESG Characteristics"), as further described in the section "Sustainability Approach" below.
- Support of the transition to a low carbon economy; and
- Upholding responsibilities to people and planet.

At least 90% of the Fund’s investments (excluding cash, deposits and money market instruments and instruments for hedging purposes) are expected to meet these ESG Characteristics (or demonstrate sound prospects for improvement in these areas as determined by the Investment Manager). The use by the Fund of financial derivative instruments for investment purposes will not be inconsistent with the Fund’s ESG Characteristics.
In selecting investments to attain the ESG Characteristics, the Investment Manager will exclude companies that:
- generate more than 10% of revenues from: the production of weapons, the sale of thermal coal, the production or sale of tobacco, the production or sale of alcohol and/ or gambling activities; or
- that generate more than 5% of revenues from adult content or
- have activities related to controversial weaponry.

The Investment Manager may, over time add further restrictions or prohibitions on other industries or sectors which it feels are not consistent with or appropriate for the Sustainability Approach of the Fund. In such a case, the prospectus will be amended accordingly at the occasion of the first update that will follow. Details of any further such restrictions will be available from the Investment Manager upon request.
A minimum of 90% of the Fund’s investments excluding cash, deposits and money market instruments, will be analysed using the Investment Manager’s ESG Characteristics.
The Fund's investment in debt securities will be subject to the following limits:
- Not more than 30% of the Fund's Net Asset Value will be invested in contingent convertible bonds ("CoCos"). CoCos will typically be issued by financial institutions with minimum capital requirements, such as banks and insurance companies, will typically be in the form of subordinated debt instruments and will typically be Additional tier 1 or Restricted tier 1 instruments. When a trigger event occurs CoCos may be converted into equity or principal may be written down on a permanent or temporary basis.
- Not more than 10% of the Fund's Net Asset Value will be invested in distressed bonds (please refer to the section entitled "Below investment grade and unrated securities risk" and "distressed securities " under Risk Factors on page 55 for more information);
- Not more than 20% of the Fund's Net Asset Value will be invested in asset backed securities and/ or mortgage backed securities;
- Not more than 10% of the Fund's Net Asset Value will be invested in catastrophe bonds ("Cat Bonds");
- Not more than 20% of the Fund’s Net Asset Value will be invested in the China Interbank Bond Market including via Bond Connect; and
- Not more than 20% of the Fund’s Net Asset Value will be invested in unrated bonds.

The Fund’s investment in sub-investment grade fixed income securities (as rated by Fitch, Moody’s and/or Standard & Poor’s) is not subject to any limit. The Fund’s overall average credit rating will vary over market cycles. Under normal market conditions, the long term average credit rating is expected to range between B and AA as measured by Standard & Poor’s or any equivalent grade of other credit rating agency, or, in the case of unrated bonds, as determined by the Investment Manager.
The Fund will not focus on any specific geographical region and its investments are not confined or concentrated in any particular geographic region or market.
Subject to the limits set out in the Investment Restrictions, the Fund may also invest up to 30% of its Net Asset Value (in aggregate) in other transferable securities, including equity and equity-related securities, units in collective investment schemes (including money market funds) and liquid assets (cash, deposits and money market instruments). The Fund will not invest more than:
- 20% of its Net Asset Value in bank deposits at sight, such as cash held in currency accounts for ancillary liquidity purposes in normal market conditions; and
- 10% of its Net Asset Value in in units of other collective investment schemes (including money market funds).

Subject to the limits set out in the Investment Restrictions, the Fund may invest in financial derivative instruments for investment purposes and Efficient Portfolio Management including hedging purposes. Such investments may include, but are not limited to, currency forward contracts (including non- deliverable forwards), futures, options (including interest rate, credit and currencies), swaps (including credit default swaps, interest rate swaps, TRS) credit linked instruments and other fixed income, currency and credit derivatives.
The extent of the use of TRS by the Fund will be dependent on market conditions. TRS provide exposure on a total return basis to an underlying reference investment. Total return includes gains or losses from market movement, credit losses and income from interest and fees. Depending on market conditions a TRS may be the most appropriate way for the Fund to gain economic exposure, either long or short, to a debt security, bespoke basket of debt securities or debt index where direct investments, investment via collective investment scheme or via other financial derivative instruments (such as futures) are either not readily available, not cost effective, not liquid or are a short position (as the applicable laws and regulations prohibit physical shorting but allow economic exposure to short positions). For example, in times of market volatility the Fund may use TRS to hedge exposure to a specific sector such as investment grade European utilities where a future or ETF is not available or not liquid, or in normal market conditions may use TRS to provide long exposure to a basket of debt securities where it is more cost effective than holding the physical positions directly. Long positions are typically taken where an investment is expected to increase in value, and short positions are typically taken where the investment is expected to decline in value, either outright or relative to another investment. The Fund may use TRS for either efficient portfolio management or investment purposes.

Translation (ENFR, 2022-08-26):
# Politique d’investissement
Le Compartiment investira au moins les deux tiers de sa valeur nette d'inventaire dans des actions et des titres rattachés à des actions (en ce compris des actions privilégiées cotées, des obligations convertibles non garanties cotées (convertible unsecured loan stock), des warrants cotés et d'autres titres similaires) de sociétés : (i) qui ont leur siège social dans la région Asie-Pacifique (hors Japon) et/ou (ii) exercent une part prépondérante de leurs activités économiques dans la région Asie- Pacifique (hors Japon), dans des secteurs et des zones géographiques qui, de l'avis du Gestionnaire de portefeuille, offrent de bonnes perspectives de revenus et de croissance du capital, compte tenu des tendances économiques et des développements commerciaux.
Sous réserve des limites fixées dans les Restrictions d’investissement, le Compartiment peut : couvrir tout risque directionnel au moyen de futures sur indices et/ou de liquidités ; détenir des obligations et des warrants sur valeurs mobilières ; avoir recours à des options et des futures à des fins de couverture et de gestion efficace de portefeuille ; conclure des swaps de portefeuille ; conclure des contrats de change à terme et détenir des actifs liquides à titre accessoire afin d’atteindre ses objectifs d’investissement, à des fins de trésorerie et en cas de conditions défavorables sur les marchés.
Aux fins susmentionnées, « la région Asie-Pacifique (hors Japon) » comprend tous les pays inclus dans l’indice MSCI All Country Asia Pacific Ex-Japan Gross TR
1
, au moment de l’investissement concerné.
Bien que le Compartiment cherche généralement à investir dans des actions génératrices de dividendes de sociétés s'étant engagées à partager leurs bénéfices, il n'est pas garanti que tous les investissements sous-jacents produisent des dividendes. Dans la mesure où les investissements sous-jacents du Compartiment produisent des revenus, le potentiel de croissance du capital peut diminuer.