DYNAMIC FLOORING Family

The DYNAMIC FLOORING family offers exposure to the main markets for top quality long-term bonds. To achieve the dual objective of performance and security, they apply a ratchet management technique. This quantitative portfolio insurance technique offers effective capital protection and long-term capital growth.

The DYNAMIC FLOORING family of subfunds offers one risk limitation strategy:

the "MAS" subfunds aim to maintain a minimum level of exposure to underlying risky assets. In this strategy, the floor - an upwardly adjustable dynamic reference floor - can be lowered to allow greater exposure when required.

Facilitated conversion between DYNAMIC FLOORING subfunds takes account of the changing levels of security required by the investor. It allows clients to switch between subfunds at any time without being penalised by new up-front fees.

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"MAS" subfunds

"MAS" subfunds provide access to the world's main bond markets. Unlike “DF” subfunds, their primary objective is not to protect a floor that is exclusively adjustable upwards. "MAS" subfunds aim to better preserve the possibility to participate in the potential growth of the risky underlying assets. This is achieved by maintaining a minimum level of exposure to the underlying risky assets (top quality long-term bonds) and the possibility of lowering the floor (a reference floor) by a pre-defined annual percentage.

The floor for these subfunds was initially set at 95% for the DYNAGEST EXPO BONDS EURO "MAS" (EUR) and 93% for the DYNAGEST EXPO BONDS USD "MAS" (USD). In each of these subfunds, the floor may be reduced (by up to 4.5% and 5.5% p.a. respectively) and minimum exposure in the underlying risky asset is 30%.

"MAS" subfunds aim to generate long-term annual returns that outperform their benchmarks (Citigroup EGBI and Citigroup U.S. Government Bond).