The (LF) Special Purpose Profit Leaders Sub-Fund has a 10-year term and will be fully liquidated by 20.12.2034. It aims at offering to investors capital gains through an investment portfolio of actively managed securities, and a systematic derivative investment strategy in selected stocks of high-profitability companies with high ESG governance ratings. It is authorised in Luxembourg.
The subscription period ended on 20.12.2024.
Investment objective
It aims to yield income, investing its assets mainly in a portfolio of fixed income securities in euro, such as government and corporate bonds traded worldwide until its maturity date on 20 December 2034.
To enhance its investment objective, the Sub-Fund will enter in a structured unfunded equity swap transaction (derivative investment strategy) with a selected counterparty for 7 years until 20 December 2031. The structured equity swap transaction gives exposure to the positive performance of the MSCI EMU Select Profitability Leaders Decrement 5% Index.
The Index includes large and mid-cap securities across 10 developed markets (DM) in the European Monetary Union (EMU) and it aims to:
- Represent the performance of an investment strategy that selects 40 securities from the MSCI EMU Index based on their market capitalisation, ESG governance scores and an aggregated metric of Return on Assets (ROA).
- Select securities with sustainable and consistent profitability.
The Index applies a constant markdown (synthetic dividend) of 5% on an annual basis, expressed as a percentage of performance.
The (LF) Special Purpose Profit Leaders Sub-Fund may invest:
- Over 35% of its assets in EU government bonds.
- Over 50% of its assets in fixed income securities with Greek sovereign or corporate risk.
- Up to 50% of its assets in non-investment grade and high yield fixed income securities.
The Sub-Fund’s overall return depends on the performance of the derivative investment strategy and the performance of the investment portfolio.
Investor profile
The sub-fund is addressed to investors with a long-term investment horizon, wishing to participate in a portfolio that invests in equity and fixed income markets, and are willing to hold their investment until maturity.
This is a marketing communication. Please refer to the "Risk Factors" section of the mutual fund's prospectus to fully understand the risks associated with this investment, as well as the Key Information Document (KID) for investors before making any final investment decisions.
