Enhanced cash solution applying
a multi-asset alternative approach
Flexible Defensive aims to achieve a moderate capital growth in the medium term with a moderate volatility on a yearly basis.
The fund objective targets absolute performances with no benchmark and looks to deliver annual gains which are decorrelated from financial markets.
The Fund risk assets exposure is limited to 30% of net total assets value, with no geographical, sector, currency, capitalization nor rating constraints.
An investment holding period of at least 3 year is advised to efficiently reduce risks.
Flexible Defensive fund can be placed in the lowest segment of Eurinvest Partners risk-return matrix.
The risk/reward rating above is based on medium-term volatility. Going forward, the Sub-Fund’s actual volatility could be lower or higher, and its rated risk/reward level may be changed.
The rating does not reflect the possible effects of unusual market conditions or large unpredictable events, which could amplify everyday risks and could trigger other risks, such as:
- Liquidity risk: Certain securities could become hard to sell at a desired time and price.
- Operational risk: In any market, but especially in emerging markets, the fund could lose some or all of its money through a failure in asset safekeeping or through fraud, corruption, political actions or any other unexpected events.
- Counterparty risk: The Sub-Fund could lose money if an entity with which it does business becomes unwilling or unable to honor its commitments to the Sub-Fund.
- Management risk: Portfolio management techniques that have worked well in normal market conditions could prove ineffective or detrimental during unusual conditions.
- Interest rate risk: associated with market changes in interest rates. Interest rate changes may affect the value of a debt instrument indirectly and directly.
- Credit risk: The value of a fixed interest security will fall in the event of the default or reduced credit rating of the issuer. Generally, the higher the rate of interest, the higher the perceived credit risk of the issuer.