Credits provide broad access to developed market, non-government bonds and loans issued primarily in EUR and USD. The expected return over the medium to long term is higher than the risk-free rate, to compensate for the credit risk taken.
Credits consist of two main product categories:
Developed Market Credits, which is a highly diversified portfolio of listed, more liquid, investment grade and high yield credit investments and Alternative Credits, which is a more concentrated portfolio of private, illiquid, and more complex credit investments.
The credits asset class is also partially used to hedge the interest-rate risk of the pension-fund liabilities.