Pure Capital - Independent asset management

Constance Alternative Options - A EUR UCITS This information is valid at 19/07/2019

Description

Investment policy and objective

The investment objective of the Sub-Fund is to achieve an absolute return performance by investing mainly in listed index options through options strategies (primarily deriving from the EURO STOXX 50 index but rarely from other indices), in proportion that may help achieve a truly market neutral strategy and a very low volatility for the sub-fund. 

The investment policy takes into account the principles of risk spreading by means of a large diversification of investments, an in-depth portfolio construction process and a high level of flexibility and reactivity of investment decisions.

Constance Alternative Options is a diversified portfolio mainly invested in money market instruments and cash on the one hand, options strategies deriving from the EURO STOXX 50 on the other hand.

Risk level (SRRI)

1
2
3
4
5
6
7
Potentially lower reward
Lower risk.
Potentially higher reward
Higher risk.

Investor profile

The sub-fund is intended for all investors who seek positive returns for a low volatility.

Investors much have an investment horizon of more than 1 year.


FUND CHARACTERISTICS

Key information

  • Name : La Financière Constance SICAV – Constance Alternative Options - A EUR
  • Classification : Low volatility - market neutral
  • ISIN code : LU1303798349
  • Bloomberg ticker : LFCALOP LX Equity
  • Type : Undertaking for collective investment in transferable securities (UCITS)
  • Legal form : A sub-fund of the Luxembourg SICAV fund "La Financière Constance SICAV"
  • Inception date : 31 August 2010
  • NAV on inception : EUR 100
  • Currency : EUR
  • Benchmark index : None
  • Share type : accumulation
  • Term : Indefinite 
  • Minimum recommended investment horizon : 1 year 
  • Investor type : Retail 
  • Management company : Pure Capital S.A. 
  • Auditor : KPMG Luxembourg 
  • NAV publication : Website, Bloomberg

Fees and charges

  • Management fee: 1%
  • Performance fee: 10% with High Water Mark
  • Ongoing charges (including management fee): 1,91%
  • Subscription fee: Max. 2%, at the distributor’s discretion
  • Redemption fee: Max. 2% payable to the Fund

Subscriptions and Redemptions

  • Minimum investment requirement: EUR 10.000
  • Cut-off: 10:00 am (CET) 
  • NAV valuation frequency: Daily
  • Settlement date: Max. (D+4)
  • Transfer agent / Depositary: Société Générale Bank & Trust S.A.

Main risks

  • The risk of using certain financial techniques: The use of complex products, such as derivative contracts, may amplify changes in the price of the sub-fund’s securities.
  • “Equity” risk: The price of an equity security may vary, sometimes due to factors that have nothing to do with the company’s intrinsic value. Equity prices may be affected by economic factors and market conditions, such as a general decrease in share prices or conditions that affect one or more specific issuers, such as changes in earnings forecasts.
  • Interest rate risk: An increase in interest rates may cause the value of the sub-fund’s bonds to decrease.
  • Credit risk: An issuer may be unable to meet its obligations. If an issuer’s solvency position deteriorates, the value of the issuer’s bonds or of derivative instruments that are linked to this issuer may decrease.
  • Exchange rate risk: The risk that the exchange rate of a given currency may vary with respect to that of another currency over the near or medium term.
  • Liquidity risk: The sub-fund invests in markets which may be adversely affected by a decrease in liquidity. These market conditions may affect the price at which the asset manager buys or sells a given security.
  • Counterparty risk: The sub-fund may suffer losses if a counterparty defaults and is unable to meet its obligations, particularly if the transaction with the counterparty involves over-the-counter derivatives.
  • Discretionary management risk: Since the investment strategy is based on projected changes in the various markets, there is a risk that the sub-fund may not be invested in the best-performing markets at any one time.
  • Operational risk: The risk of an error or wrongdoing on the part of a party involved in the management, valuation and/or custody of the sub-fund’s assets.

Disclaimer

Before investing in this fund, you should carefully read the Key Investor Information Document (the “KIID”) and the prospectus. The KIID, the prospectus, the audited annual report and the unaudited semi-annual report are available on this website.

The information presented above does not constitute investment advice and is intended solely for marketing purposes.

Past performance is not a reliable indicator of future results. Performance may vary over time. Investments in this fund are subject to market fluctuations and investors may not recover all of their initial investment. Pure Capital may vary the fund’s future exposures, allocations and investments as it deems appropriate to accommodate different market conditions. There can be no guarantee that investment objectives will be met.

Management fees, depositary bank fees, and all other fees and charges indicated in the prospectus as borne by the fund are included in the calculation of its net asset value and consequently of its performance. 

The custodian may charge annual custody fees that are determined by the custodian. For more information about these fees prospective investors must contact their custodian.

The taxation of this financial product depends on the investor’s specific situation. In Belgium: 

  • Transactions tax: No tax is charged when purchasing the sub-fund. A 1.32% tax is charged when selling accumulation shares only. This tax is capped at €4,000.

Any claims and complaints may be addressed in writing to Pure Capital S.A. at its registered office at 2 rue d’Arlon, L-8399 Windhof, Grand-Duchy of Luxembourg. In Belgium: if investors are not satisfied with the handling of these claims or complaints, they may submit them to Ombudsfin, mediation service for financial services whose address is North Gate II, Boulevard du Roi Albert II, n° 8 bte.2, 1000 Brussels, tel.: +32 2 545 77 70, fax: +32 2 545 77 79, e-mail: ombudsman@ombudsfin.be, either in a separate written message or using the complaint form available online at https://www.ombudsfin.be/en/individuals/introduce-complaint/.

 

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