NT Target return fund

NT TARGET RETURN FUND<br>San Marino UCITS III fund, authorized on March 4, 2024<br>ISIN Code Class R: SM000A408UU2<br>CURRENCY: EUR<br>FUND CATEGORY: Flexible Bond<br>FUND MANAGEMENT TYPE: TOTAL RETURN <br>During the investment cycle of the Fund, the aim is to provide a consistent income stream over time, as well as to revalue the invested capital. The Fund targets individual investors seeking a consistent income stream over time, along with capital appreciation over a short/medium term and willing to accept a certain level of risk on invested capital and a moderate level of volatility in the value of their investments. Investing in this Fund presupposes that the Investor has the knowledge and skills necessary to adequately assess the characteristics and risks of the investment. The Fund is actively managed without reference to a benchmark. The investment policy involves constructing an initial portfolio by selecting financial instruments of a bond and/or monetary nature, with an average remaining life consistent with the duration of the Fund's investment cycle. The duration is initially not more than 5 years. During the investment cycle, constant portfolio monitoring is carried out to verify, in particular, the maintenance of an average duration of financial instruments, compatible with the duration of the Fund's investment cycle, the maintenance of a liquidity profile consistent with the distribution policy, the potential risks of insolvency of the issuers of the financial instruments in the Fund's portfolio. The end of the Fund's investment cycle is set four years after the subscription start date. During the "Subscription Period" (or, in case of extension or reduction of the "Subscription Period", during the "Effective Subscription Period"), investments will be made in financial instruments, including derivatives, of a monetary and/or bond nature, having at the time of purchase a credit rating not lower than investment grade and/or in bank deposits. Investments made in financial instruments and bank deposits denominated in currencies other than the euro, will be subject to currency risk hedging operations. During the "Subscription Period" (or, in case of extension or reduction of the "Subscription Period", during the "Effective Subscription Period"), the duration of the Fund will tend to be less than two years. The Fund invests in financial instruments of a bond nature (including subordinated bonds to a residual extent, i.e., less than 10% of the total assets of the Fund) and/or monetary nature, mainly denominated in euro, without predetermined constraints on the geographical and sectoral distribution of the issuers. Investments are made predominantly or mainly (between 50% and 100% of the total assets of the Fund) in financial instruments quoted on official or regulated markets, recognized regularly functioning, and open to the public of OECD member states and other Sovereign States. The Fund may invest in bank deposits and other liquid assets (excluding those held for treasury purposes). Investment in OICs and ETFs of any nature, as well as in equities, is excluded; equity securities received by the Fund following the conversion of structured bonds (for example, convertible bonds or bonds using warrants) are sold in the interest of participants at times and in ways deemed most appropriate by SG. Investments in financial instruments denominated in currencies other than the euro, will tend to be hedged against currency risk. Currency exposure cannot in any case exceed 10% of the total assets of the Fund. Investment in unquoted financial instruments may only occur to a residual extent (less than 10% of the total value of the Fund's assets). SG reserves the right to invest in structured securities only to a residual extent (less than 10% of the total value of the Fund's assets). Investments made by the Fund prioritize financial activities, characterized by a high degree of liquidity.