The Shares of the THE 1.2 FUND LUX VOLATILITY TRADING will be issued for subscription for the first time from 01/05/2014 at an initial issue price per Share in the amount of EUR 100.
After the initial issue date, the Company may issue Shares of the Subfund in the following categories:
- B-Shares: accumulating (for “retail investors”)
- C-Shares: accumulating (for “institutional investors”)
Only registered Shares will be issued.
The company may issue Shares both in the accounting currency of the Subfund, EUR, and in USD. Details of the share categories available at any one time may be requested from the Central administration or the information agents or distributors.
C-Shares are issued only to “institutional investors“ within the meaning of Article 174 of the 2010 Law, i.e. in principle as companies constituted as a corporate legal entity or equivalent legal form which hold these Shares either as part of their own business assets or under contract on behalf of institutional investors as defined above, or else reselling the Shares exclusively to institutional investors or using them on their own behalf and for account of third parties within the scope of discretionary portfolio management (re. minimum subscriptions, see the section “Issue and sale of Shares and “Switching of Shares”).
THE 1.2 FUND LUX VOLATILITY TRADING is suitable for investors who have experience with volatile investments, a sound knowledge of the capital markets and who wish to participate in the performance of the capital markets in order to pursue their specific investment objectives. Investors must expect fluctuations in the value of the investment, which may temporarily even lead to substantial loss of value. THE 1.2 FUND LUX VOLATILITY TRADING may be used as a supplementary investment within a widely diversified overall portfolio.
Risks regarding Investments in Derivatives
THE 1.2 FUND LUX VOLATILITY TRADING makes considerable use of derivative instruments, in particular listed options and futures. In addition to the risk features of securities, those of derivatives and other investment techniques and instruments therefore also have to be taken into consideration. In general, they are exposed to the risks of the markets or basic instruments underlying them and often involve higher risks than direct investments in securities. Potential risks of such instruments may, for example, result from complexity, non-linearity, high volatility, low liquidity, restricted ability to be valued, risk of a loss of earnings or even a total loss of the invested capital, or from the counterparty risk.
The prospectus consists of a general part (“General Part”) containing all provisions which are applicable to all Subfunds, and special parts (“Special Part”) describing the Subfunds and containing any provisions applicable to them. The complete prospectus, in the Special Parts, contains all Subfunds, and is available for inspection by the shareholders at the registered office of the Company. The prospectus may be supplemented or amended at any time. In such case, the shareholders will be informed accordingly.
The UCITS brand is also recognised internationally, and many UCITS funds are registered in non-European countries such as Switzerland, Hong kong, Singapore, Taiwan, Bahrain, Chile and Peru.
UCITS funds offer both managers and investors a number of benefits when compared to the more classic offshore funds. These include benefits with regards to distribution and investment strategies for managers, as well as greater transparency, better risk management and liquidity for investors.The recognised regulated status of a UCITS fund is attractive for retail investors who can rely on a set standard of quality for their funds, as well as for a number of corporate investors, such as pension funds, who may be limited through their own investment restrictions to only invest in regulated funds such as UCITS funds.The true marketability of a UCITS fund stems from a number of key benefits offered to investors:Greater Liquidity
UCITS funds are subject to a regulated liquidity requirement of at least fortnightly dealing with no minimum holding periods. UCITS funds will often have weekly and even daily liquidity and this is one of the strongest advantages of the UCITS framework in relation to investor protection.
Redemption Settlement Periods
The maximum delay from the receipt of a shareholder’s redemption request and the settlement of that redemption by a UCITS fund cannot be more than 14 calendar days.
Better Risk Management
UCITS funds provide investors with a detailed risk management framework, which is designed to ensure a minimum level of diversification, and limit exposure to third parties and leverage (which is only possible through the use of derivatives). Every UCITS fund is required to employ adequate risk management processes to measure and monitor risk at all times and it should regularly report to its EU Member State regulator on the types of derivative instruments, underlying risks, quantitative limits and the method of analysing risks in relation to transactions in derivatives. The UCITS fund and/or its Management Company should have in place a detailed Risk Management Policy, which explains how risk management will be controlled.
UCITS funds are required by EU Member States to report comprehensively to investors on their portfolio holdings and to produce at least a fortnightly net asset value, as well as annual and semi-annual financial reports.
UCITS funds have set restrictions on direct borrowing which are different to offshore funds (which have no such restrictions and often will be highly leveraged). Managers have the ability through the use of derivatives to increase the leverage of a UCITS fund up to a total market exposure of 200% of the UCITS fund’s net asset value. However, greater risk management obligations apply to such funds, ensuring an overall commitment to protect investors.
|Investment Manager||Option Solutions LLP|
|Management Company||GAM Asset Management|
|Brokers||ADM Securities, Deutsche Bank|
|Administrator, Transfer Agent||State Street Bank|
|Custodian||State Street Bank|
|ISIN code EUR B Class||LU1030377359|
|ISIN code USD B Class||LU1030377862|
|ISIN code EUR C Class||LU1030380221|
|ISIN code USD C Class||LU1030380577|
|Bloomberg EUR B Class||12FOSEB|
|Bloomberg USD B Class||12FOSUB|
|Bloomberg EUR C Class||12FOSEC|
|Bloomberg USD C Class||12FOSUC|
|Type of Fund||UCITS Fund|
|Regulator||Commission de Surveillance du Secteur Financier (CSSF)|
|Fund Strategy||Options Strategy|
|Leverage||Maximum leverage 2x|
|High water mark||Yes|
|Management fees||1.5% Class B and 0.75% Class C|
|Sales/Intermediary fee||up to 5%|
|Minimum investment||100,000 EUR or USD for the C Class; none for the B Class|
|Cut-Off Time||15:00 CET|