The Sub-Fund will seek to achieve its capital appreciation objective by investing in a diversified multi-asset portfolio composed of: 1)A basket of UCITS exposed to the following asset classes (the “Asset Classes”): equities (maximum 80%), fixed income securities (maximum 30%) and high yield credit (maximum 25%) (the “Dynamic Portfolio");  2) Cash deposits and a basket of UCITS which invest in to money market instruments (the “Protection Portfolio”).
The Sub-Fund will adopt a strategy that rebalances the investment allocation between the “Dynamic” and “Protection” portfolios, according to the TIPP (“Time Invariant Portfolio Protection”) methodology which aims at limiting the maximum decrease in value of the Sub-Fund so that it does not exceed 20%.
The TIPP methodology dictates the maximum allowed allocation of the Sub-Fund’s assets to the Dynamic Portfolio on each Business Day. Assets not allocated to the Dynamic Portfolio are invested in the Protection Portfolio. Under the circumstances that the Dynamic Portfolio experiences a substantial drawdown, the proportion allocated to the Dynamic Portfolio as per the TIPP methodology could potentially become zero and consequently the entire assets of the Sub-Fund will be invested in the Protection Portfolio. Such event is called a “Cash-Lock Event” and when this happens in a negative money-market environment, the Sub-Fund can no longer invest in the Dynamic Portfolio and benefit from a market recovery. In order to mitigate the Cash-Lock risk, the Sub-Fund can temporarily lower the allocation to the Dynamic Portfolio below the maximum allowed by the TIPP methodology or even temporarily zero the allocation to the Dynamic Portfolio, based on equity market volatility indicators.
The Sub-Fund is actively managed and does not follow any benchmark.
Barclays Bank PLC, has been selected as “Allocation Agent” to provide operational support to the Guarantor and Investment Manager in relation to the implementation of the TIPP methodology. Barclays Bank Ireland was selected as Guarantor.
The Sub-Fund will on each Business Day offer an element of  protection equal to at least 80% of the highest Net Asset Value per Unit ever achieved by the Sub-Fund from its launch onwards (i.e. commencing with the price per Unit set at the day of the initial offering) (“Protected Level”).
This protection will be achieved through: 1) the OTC Put Option that aims to pay any shortfall amount that the Sub-Fund may need to receive in order to pay the Protected Level to the unitholders in case of redemption from the Sub-Fund. If the Sub-Fund’s Net Asset Value per unit equals or exceeds the Protected Level, the Sub-Fund will not exercise the OTC Put Option. The Sub-Fund bears OTC Put Option related costs. 2) a guarantee contract (the “Guarantee”) with the Guarantor under which the Guarantor will pay an amount equal to the Protected Level less the Net Asset Value per unit of the Sub-Fund (if positive).
For the avoidance of doubt, the Sub-Fund’s capital appreciation objective is not guaranteed. Sub-Fund has no any predetermined expiration date.