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  • Inception Date

    The Inception date is the date the fund or UCI is formed and units become available for sale.

  • Interest Rate Risk Bonds

    Bond prices move in the opposite direction of interest rates. When rates fall, bond prices rise. When rates rise, bond prices fall. To determine how dramatic a fund's ups and downs might be, check out its duration—a measure that considers a bond's maturity, the cash flows from coupons and principal, and current interest rates to produce a risk measure that investors can use for comparisons. The higher a bond's duration (measured in years), the more it responds to changes in interest rates. If a bond has a duration of five years, you can expect it to gain 5% if interest rates fall by one percentage point, and to lose 5% if interest rates rise by one percentage point. So a bond with a duration of four years should be twice as volatile as a bond with a duration of two years.

  • Investment grade

    Having a rating of at least BBB by Standard & Poor’s or at least Baa3 by Moody’s Investor Services or at least BBB by Fitch Ratings. These ratings are considered equivalent by the Investment Manager of a UCI.

  • Investment policy

    A UCI must first agree on a defined investment policy and must adhere to this when conducting investment decisions. In the "prospectus" the investment policy must be stated in such a way that it is sufficiently precise and narrowly defined so as to serve as a firm commitment. The investment policy must also be effectively executed as it is included in the prospectus. The investment policy includes an amount of crucial information for investors such as:

    • The asset classes in which the UCI is authorized to invest (e.g. shares, bonds, etc.). The UCI must also indicate in which asset classes they will mainly invest;

    • The type of actions that are allowed regarding derivative financial instruments (e.g. options, swaps, repurchase agreements, etc.).

    • If this is the case, any benchmark (which will serve as a reference for the performance) or index that will be used;

    • Besides some economically oriented informative elements, the investment policy also explains social, ethical and environmental aspects. After all, the UCI must indicate to which extent social, environmental and ethical considerations are taken into account in the implementation of the investment policy of the UCI.