The (LF) Special Purpose Profit Leaders II Sub-Fund has a 10-year term and will be fully liquidated by 31.07. 2035. 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 31.07.2025.
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 31.07. 2035.
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 03.08.2032. The structured equity swap transaction gives exposure to the positive performance of the MSCI EMU Select Profitability Leaders Decrement 5% Index.
This Index includes large and mid-cap securities across 10 developed markets 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 Asset (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 II Sub-Fund may invest:
- Over 35% of its assets in EU members’ government bonds.
- Over 50% of its net assets in fixed income securities with Greek sovereign or corporate risk.
- Up to 50% of its net 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.
