Free Value Sub-Fund, a sub-fund of Pilatus SICAV p.l.c. is licensed by the Malta Financial Services Authority as a Professional Investor Fund which is available to Qualifying Investors.
Investment Objective
The Investment Objective of the Sub-Fund is to achieve absolute returns in the medium to long-term (over a 5 to 7 year period) under all market conditions.
There is no guarantee that the investment objective of the Sub-Fund will be achieved and investment results may vary substantially over time.
Investment Policies
In order to achieve its objective the Sub-Fund shall invest primarily in one or more unrated and unlisted bonds. The bond portfolio of the Sub-Fund is expected to have an average duration of five (5) years.
The Sub-Fund may also invest in (i) listed transferable securities including equities and bonds; (ii) index (mainly equity and commodity based indices) futures (including, S&P 500, EURO STOXX 50, DAX and CBOE Volatility Index); (iii) commodity (mainly agricultural, livestock, energy, precious metals and industrial metals) derivatives (such holding will never lead to the physical delivery of the relevant commodity); (iv) spot and forward foreign exchange contracts; (v) Exchange Traded Funds and (vi) FDIs (including futures, forwards, options and contracts for differences) and/or OTC derivatives.
The Sub-Fund will generally invest in assets denominated in EUR, CHF, USD and GBP. The Sub-Fund may invest in the asset classes indirectly through other collective investment schemes and structured products linked to amongst others securities, indices and commodities. The exposure to collective investment schemes and structured products shall not exceed 90% of the total assets of the Sub-Fund. The Sub-Fund shall invest in equities of medium to large capitalisation companies (market capitalisation in excess of USD1 billion) with a maximum of 20% of the assets of the Sub-Fund being invested in the equities of small capitalisation companies (market capitalisation less than USD1 billion).
The Sub-Fund may invest in collective investment schemes managed by the Investment Manager and, subject to the MFSA rules on cross sub-fund investments and as set out in Section 2 of the Offering Memorandum, may also invest in other sub-funds of the Company. In this case, the Investment Manager shall re-imburse the Sub-Fund any investment management and/or performance fees, as well as any applicable subscription/redemption charges, received in connection with the Sub-Fund’s investment in the target collective investment scheme.
The Investment Manager is also expected to invest in FDIs and ETFs for hedging purposes and the reduction of risk. The Sub-Fund may invest in short-term fixed income instruments, money market funds and cash and cash equivalents. The Sub-Fund may also retain amounts in cash or cash equivalents, pending reinvestment and to meet operating expenses and redemption requests, if this is considered appropriate to the objective of maximising absolute returns. Uninvested cash which has not been placed as margin may, subject to investment restrictions, be held on deposit in a bank account in the name of the Sub-Fund.