(LF) Special Purpose Profit Leaders Fund
Investment objective
The Sub-Fund aims to create income by investing its assets mainly in a portfolio of fixed income securities denominated in Euro, such as government bonds and corporate bonds , admitted to an Official Listing or dealt in on a Regulated Market and traded worldwide (the “Investment Portfolio”) until the Sub-Fund’s maturity date on 20 December 2034 (the “Maturity Date”).
In order to enhance its investment objective, the Sub-Fund will, for a period of 7 years ending on 20 December 2031,enter in a structured unfunded equity swap transaction (the “Derivative Investment Strategy”) with a selected counterparty.The structured equity swap transaction gives exposure to the positive performance of the MSCI EMU Select Profitability Leaders Decrement 5% Index (the “Index”) and is comprised of 2 “legs”:a)
The “Receivable from the Sub-Fund” leg (the “Option Leg”) is based on a 7-year call option with the Index as underlying, b)The “Payable from the Sub-Fund” leg (the “Funding Leg”) comprises 7 annual payments from the Sub-Fund to the selected counterparty. The proceedings from the Investment Portfolio will be partially used to cover the expenses of the structured equity swap transaction (i.e., the 7 annual payments under the Funding Leg above).
Further information on the Derivative Investment Strategy (including the Option Leg) is provided in section “Derivative Investment Strategy Details” in the Prospectus.The Sub-Fund may invest more than 35% of its assets in European Union members’ government bonds. The Sub-Fund may invest more than 50% of its net assets in fixed income securities carrying Greek sovereign or corporate risk.
The Sub-Fund may invest up to 50% of its net assets in noninvestment grade and high yield fixed income securities.The portfolio build up may commence during the initial offering period, as defined below, and the investment policy will not be followed to the full extent during the same period.Secondarily, the Sub-Fund invests in bank deposits and foreign and domestic money market instruments, as well as in financial derivative instruments other than the structured equity swap transaction (such as, but not limited to, options, futures, credit default swaps, FX forwards and FX futures) for the purposes of efficient portfolio management or hedging. The SubFund will not invest directly in equities, defaulted or distressed securities and contingent convertibles (CoCos), unless these instruments resulted from corporate actions or debt restructuring of one of the issuers of fixed income instruments that are contained in the Sub-Fund.The investors are informed that the payout of the Sub-Fund is not only depending on the performance of the Derivative Investment Strategy, but also depends on the performance of the Investment Portfolio.The Sub-Fund does not promote environmental or social characteristics in a way that meets the specific criteria contained in Article 8 of the Sustainable Financial Disclosure Regulation ("SFDR") or have sustainable investment as its objective in a way that meets the specific criteria contained in Article 9 of SFDR.All income of the Sub-Fund is reinvested.You can buy and sell shares of the Fund on a daily (bank business days in Luxembourg and Greece) basis. You can subscribe units of the Sub-Fund from 9th of September 2024 until the expiration of the initial offering period on December 20, 2024. After the expiration of the initial offering period, the Sub-Fund will be closed to all subscriptions and conversions.
Addresses
The Sub-Fund has a medium risk profile, mainly associated with the use of financial derivative instruments, linked to equity exposure.Investors should also consider the fact that the capital invested is potentially at risk.The Sub-Fund is addressed to investors with a long-term investment horizon and who are seeking return from exposure to equity and fixed income markets and who are prepared to remain invested until the Maturity Date.
There is no guarantee that the investment-return objective will be achieved.
 KID (LF) SPECIAL PURPOSE PROFIT LEADERS FUND – Class EUROBANK
|