The Sub-Fund aims to provide capital growth in line with a systematic strategy on selected equities as described below (the “Derivative Investment Strategy”) and with the performance of a portfolio of transferable debt securities which are actively managed.
The Derivative Investment Strategy has an anticipated life of 10 years beginning on November 9, 2012 (strike date) and maturing on November 9, 2022 (the “Investment Period”). The Derivative Investment Strategy’s objective across the Investment Period is based on a performance valuation mechanism of an equally weighted reference basket of twenty (20) equities, according to the points a), b) c) and d) below:
a) An equally weighted portfolio of the following twenty (20) equities has been constructed.
|Company Name||Sector||Bloomberg Ticker|
|ENI SPA||Oil & Gas||ENI IM Equity|
|BHP BILLITON PLC||Mining||BLT LN Equity|
|SIEMENS AG-REG||Miscellaneous Manufac||SIE GY Equity|
|COMPAGNIE DE SAINT-GOBAIN||Building Materials||SGO FP Equity|
|BASF SE||Chemicals||BAS GY Equity|
|HSBC HOLDINGS PLC||Banks||HSBA LN Equity|
|NESTLE SA-REG||Food||NESN VX Equity|
|RECKITT BENCKISER GROUP PLC||Household Products/Wares||RB/ LN Equity|
|L’OREAL||Cosmetics/Personal Care||OR FP Equity|
|PPR||Retail||PP FP Equity|
|TESCO PLC||Food||TSCO LN Equity|
|EXXON MOBIL CORP||Oil & Gas||XOM US Equity|
|SCHLUMBERGER LTD||Oil & Gas Services||SLB US Equity|
|GENERAL ELECTRIC CO||Miscellaneous Manufac.||GE US Equity|
|FEDEX CORP||Transportation||FDX US Equity|
|INTL BUSINESS MACHINES CORP||Computers||IBM US Equity|
|MICROSOFT CORP||Software||MSFT US Equity|
|APPLE INC||Computers||AAPL US Equity|
|AMAZON.COM INC||Internet||AMZN US Equity|
|YUM! BRANDS INC||Retail||YUM US Equity|
Substitution of share(s) in case of corporate action(s) may occur during the Investment Period.
b) For the performance calculation of the basket of the twenty (20) equities, the calculation periods are defined as follows:
1st Calculation Period: <9 November, 2012>– <11 November, 2013>
2nd Calculation Period: <9 November, 2012> – <10 November, 2014>
3rd Calculation Period <9 November, 2012>– <9 November, 2015>
4th Calculation Period: <9 November, 2012>– <9 November, 2016>
5th Calculation Period: <9 November, 2012>– <9 November, 2017>
6th Calculation Period: <9 November, 2012>– <9 November, 2018>
7th Calculation Period: <9 November, 2012>– <11 November, 2019>
8th Calculation Period: <9 November, 2012>– <9 November, 2020>
9th Calculation Period: <9 November, 2012>– <9 November, 2021>
10th Calculation Period <9 November, 2012>– <9 November, 2022>
c) For the first Calculation Period, the performance of the two highest performing equities is recorded and locked for the rest of the Investment Period at a minimum of 0%.. For each of the above Calculation Periods:1) the basket of 20 equities is composed of locked equities from previous Calculation Periods (2 per each Calculation Period) and non-locked equities, 2) the performance of the two highest performing equities amongst the remaining non-locked equities is recorded and locked for the rest of the Investment Period at a minimum of 0%.
d) The Derivative Investment Strategy’s payoff at maturity equals the average of the locked performances of the equities in the basket at the last (10th) Calculation Period (the “Pay-off”).
The Sub-Fund has a high-risk profile, mainly associated with the use of financial derivative instruments, linked to equity exposure. The Sub-Fund is addressed to investors with a long-term investment horizon and who are seeking returns from exposure to international equity markets.
|KIID Eurobank I (LF) Special Purpose Best Performers Fund|