The investment policy is geared towards generating an above-average current income witha below-average volatility compared to the US short duration high yield bond market.
Sub-Fund assets are invested in Interest-bearing Securities. Index certificates and other certificates whose risk profile typically correlates with Interest-bearing Securities or with the investment markets to which these assets can be allocated may also be acquired for the Sub-Fund. Equities and comparable rights may be acquired in the exercise of subscription, conversion and option rights on convertible bonds and bonds with warrants, but they must be sold within twelve months. At least 70% of the sub-fund assets are invested in interest-bearing securities whose issuers are companies that have their registered office in the U.S. or whose repayment is guaranteed by a company that has its registered office in the U.S. or which are constituents of the Merrill Lynch 1-3 years BB-B US Cash Pay High Yield Index.