Description
The management uses as reference the returns of the BofA Merrill Lynch Euro Subordinated Financial Index (EBSU) at 50%; the BofA Merrill Lynch Euro Non-Financial Subordinated Index (ENSU) at 30%; and the BofA Merrill Lynch Euro Currency Overnight Deposit Offered Rate Index (LEC0) at 20%. At least 50% will be invested in subordinated debt (ranks last in creditor seniority). Of this, a maximum of 70% will be invested in convertible bonds, which may consist entirely of contingent convertible bonds, and are typically perpetual in nature with a buyback option included. These bonds may be converted into shares or set up under a “principal write-down” system, whereby the contingency, upon triggering, will reduce the principal amount of the bond.The fixed-income part not invested in subordinated debt will be invested in public debt, other private fixed income and non-negotiable money market deposits and instruments . Exposure to equities will be limited to 15%, whether or not stemming from bond conversions. Exposure to currency risk may not exceed 30%. Fixed income assets and equities will be issued primarily in euros, with no limit on eligible markets, including emerging markets. There will be no pre-defined limits or restrictions on credit ratings. Duration will range from 0 to 8 years.The recommended time horizon is 5 years.The full content of the investment policy can be found in the prospectus and in the key investor information document (KIID) available on the website www.caixabank.es, along with all other legal documentation, and on file with the CNMV (www.cnmv.es)