LEVEL TWO INVESTMENTS - PATRIMONIUM FUND

The investment objective of LEVEL TWO INVESTMENTS – PATRIMONIUM FUND (the “Sub-Fund”) is to achieve capital protection and appreciation through investment in transferable securities, money market instruments and other legally acceptable assets.

The investment portfolio will consist of individual securities as well as UCITS/UCIs index funds, Exchange Traded Funds ETFs, Exchange Traded Notes (ETNs) and index futures. Index funds and ETFs will be used to obtain market exposure in specific markets or situations where such instruments are deemed more attractive than a selection of individual securities. In this way the use of index-oriented funds or ETFs does not represent a Fund-of-funds strategy but a means to obtain the desired asset allocation.

Where investments in funds are made, risks are reduced by investing in funds, which themselves also have to comply with risk diversification requirements.

The composition of the portfolio depends on the market expectations of FINARE ASSET MANAGEMENT S.A. (the “Investment Manager”) and will reflect the recommended asset composition at any time for investors with a certain risk profile.

The Sub-Fund may invest in transferable debt securities including corporate bonds, government bonds, mortgage-backed securities (maximum up to 20% of net assets), fixed income instruments issued by sovereign borrowers or their agencies as well as other fixed income securities. For the debt securities in which the Sub-Fund may invest, at least 50% will be invested in debt securities of "Investment Grade" (commonly described as above BBB- for the long term according to Standard & Poor's scale), or deemed equivalent by the Investment Manager.

The Sub-Fund may also invest in equity and equity related securities.

Under normal market conditions, the proportions of assets allocated by the Sub-fund to equities may vary between 20% and 60% of its net assets and the allocation to bonds may vary between 30% and 90% of its net assets.

The exposure to emerging markets may not exceed 20% of the Sub-Fund’s net assets.

For treasury purposes the Sub-Fund may also invest in liquid instruments according to the criteria of article 41(1) of the 2010 Law such as (but not limited to) money market instruments, money market funds, and bank deposits. The Sub-Fund may hold ancillary liquid assets limited to bank deposits at sight, such as cash held in current accounts with a bank accessible at any time, in order to cover current or exceptional payments, or for the time necessary to reinvest in eligible assets provided under article 41(1) of the Luxembourg Law of 17 December 2010 on undertakings for collective investment, as amended (the “2010 Law”). The holding of such ancillary liquid assets is limited to 20% of the net assets of the sub-fund. Ancillary liquid assets do not include other bank deposits, money market instruments, money market funds and other instruments that meet the criteria of article 41(1) of the 2010 Law.

The Investment Manager will have the possibility to hedge the currency risk using forward foreign exchange transactions within the limits prescribed by the 2010 Law.

Depending on the instruments used to implement the investment strategies, the Sub-Fund could have variable levels of cash or cash equivalents. It is not to be excluded that for shorter periods, the level of cash or equivalents increases up to 100% of the Sub-Fund’s net assets.

The Sub-Fund may use derivatives for hedging purposes only.

Exposure to Crypto-Assets (Indirect Exposure Only)

The Sub-Fund may obtain indirect exposure to crypto-assets through eligible financial instruments, up to a maximum of 10% of the net asset value of the Sub-Fund and provided that such exposure complies at all times with the requirements of the 2010 Law and applicable regulatory guidance.

Such exposure shall be achieved exclusively through investments in financial instruments, whose underlying assets consist of crypto-assets, are limited to transferable securities that do not embed any derivatives in accordance with Article 10 of the Grand Ducal Regulation of 8 February 2008. Such investments must, at all times, qualify as transferable securities within the meaning of Article 1(34) of the 2010 Law, Article 2 of the Grand-Ducal Regulation of 8 February 2008 and point 17 of CSSF Circular 08/380.

The Sub-Fund will not invest directly in crypto-assets.

Indirect exposure to crypto-assets will remain ancillary and will not constitute a core component of the investment strategy.

The Investment Manager will ensure that such exposure remains consistent with the Sub-Fund’s investment objective, risk profile and diversification requirements.

Investments providing exposure to crypto-assets must meet appropriate standards in terms of liquidity, valuation, transparency and risk management. In particular, the Investment Manager will ensure that reliable valuation methodologies are available and that the instruments concerned are admitted to or dealt in on regulated markets or other regulated trading venues.

Prior to implementing such exposure, Pure Capital S.A. (the “Management Company”) shall ensure that the risk management process, valuation framework and relevant internal controls adequately capture the specific risks associated with such exposure.

The risks associated with crypto-assets, including but not limited to high volatility, market fragmentation, liquidity constraints, technological risks and regulatory uncertainty, are described in the section “Special Risk Considerations" of the Prospectus.

The Sub-Fund is neither meant to follow an index nor to be benchmarked against an index. The sub-fund is classified as Article 6 under SFDR regulation. The sub-fund does not consider principal adverse impacts on sustainability factors.

This is an advertising communication. Please refer to the prospectus and the Key Information Documents (PRIIPS-KID), for the UCITS before making any final investment decision. These are available free of charge on request from Pure Capital S.A. (tel: +352 26 39 86) or on this website. The PRIIPS-KID is available in English. The prospectus, the half-yearly report and the annual report are available in English.

The information presented above does not constitute investment advice and is intended for promotional purposes. It is neither a binding contractual document nor a disclosure document required by law, and is not sufficient for making an investment decision.

The management and custodian fees, as well as any other costs which, in accordance with the prospectus, are charged to the sub-fund, are included in the calculation of the net asset value and, consequently, the performance.

An annual custody fee may be charged by the account holder. They vary from one institution to another. To find out about them, it is necessary to ask it.

The tax treatment of this product depends on the investor's situation. 

Investors can find out about their rights at https://www.purecapital.eu/legal.html. A summary is available in English and French.

Any claims or complaints may be addressed to the person responsible for handling complaints, either by post to the company’s registered office at “Pure Capital S.A., 2 rue d’Arlon, L-8399 Windhof, Grand Duchy of Luxembourg”, or by email at “complaint@purecapital.eu".

Pure Capital S.A. may decide to cease the marketing of its collective investment schemes in accordance with Article 93a of Directive 2009/65/EC and Article 32a of Directive 2011/61/EU.