Objectives and investment policy
The objective of this fund is to generate a positive return regardless of market conditions. This is achieved by taking both long and short equity positions on the European equity market. The return target for the fund is 7-15%, however, the return of the fund depends to a high degree on the portfolio managers’ ability to select the right equities. The fund is accumulating.
The fund invests mainly in equities and equity related securities in companies domiciled in or with main activity in Europe. The fund can invest a small part in securities domiciled in or traded on regulated markets in countries outside Europe.
The risk management of the fund is an important part of the portfolio management. Ideally, the risk management contributes to both minimizing the risk and improving the possibilities for a higher return. The risk is reduced by minimizing the sensitivity against movements in the equity market and by diversifying the investments on approx. 25-35 different strategies which typically consist of one long position and several short positions which will only be taken via financial derivative instruments.
The main part of the fund's NAV will be hedged against the base currency of the fund. However, the fund remains exposed to the currencies of the investments in the fund.
Recommendation: This fund may not be appropriate for investors who plan to withdraw their money within 8 years.