The investment objective of the Subfund is to achieve capital appreciation within defined risk parameters. Investments may be denominated in any currency. In order to achieve this objective the Subfund shall be invested primarily in inflation-indexed debt instruments, bonds, notes, similar fixed-interest or floating-rate securities (including securities issued on a discount basis). The minimum required credit rating is at least investment grade (BBB- from S&P, Baa3 from Moody’s or the equivalent). In addition, On average, the minimum investment grade rating of the portfolio is targeted to be at least A (S&P), A2 (Moody's) or equivalent. Additionally the Subfund may invest a portion of its assets in convertible bonds, convertible notes and warrant bonds. The Subfund may furthermore invest up to a maximum of 10% of its assets in equities or other equity type securities and in warrants on such equities issued by issuers from developed countries. In addition to direct investments, the Subfund may use derivatives such as: futures, options as well as swap transactions (interest-rate swaps, total return swaps, etc.) for the purpose of hedging and the efficient management of the portfolio. Furthermore, the Subfund may actively manage its currency exposure through the use of currency derivatives. The Subfund may also hold ancillary liquid assets.