The objective of OYSTER European Corporate Bonds is to provide its investors with a portfolio consisting of bonds issued by companies headquartered in the countries of the European Union, or whose economic activity is predominantly carried out within the territory of the European Union. The fund mainly invests in corporate bonds within the European area. The reference universe is represented by the 1500 or so issues composing the Merrill Lynch European Corporate Bond index, which is also the benchmark of the fund. The fund is managed with a mixed top-down/bottom-up approach. For the macroeconomic part, the manager makes use of the Fog-Lights quantitative forecasting models developed by Banque SYZ & CO SA, Geneva, which generate objective forecasts for interest rates, exchange rates, economic cycles and projections of activity in industrial sectors. These models further permit the formulation of a global evaluation of market prices. The bottom-up part is developed by the management team, which carries out searches for issuers with interesting economic and financial prospects, above-average growth forecasts or which are potential merger and acquisition candidates. In order to guarantee strict control of risk and a sufficient degree of diversification, the fund is obliged to observe rigorous internal directives; issues considered for investment must have a minimum amount of EUR 300mn and at least half of the fund must be invested in issues with an issue size of at least EUR 800mn. In terms of rating, the fund may invest up to 100% of its assets in AAA rated-issues, up to 75% in A, up to 60% in BBB and up to 5% in high-yield or non-rated issues. The duration of the fund is between 2 and 5 years.