Long Short Flex Strategy 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 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 a diversified portfolio of instruments. Such instruments may include, but are not limited to (i) listed transferable securities including bonds (i.e. corporate and/or government bonds) and equities; (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; and (v) ETFs.
The Sub-Fund may also invest in the major currency pairs, including but not limited to GBP/USD, EUR/USD, USD/CHF, USD/JPY and USD/CAD. The Sub-Fund will generally invest in assets denominated in EUR. The Sub-Fund will follow a multi-market, multi-time frame and multi-strategy investment approach and will accordingly follow various strategies that focus on different markets, asset classes and time frames with a (direct or indirect) investment bias towards bonds and other debt instruments. The Sub-Fund may invest directly in these asset classes, but it is expected that it will mainly invest indirectly through (i) regulated and/or unregulated, listed and/or unlisted, collective investment schemes available to retail and/or professional investors (including, other subfunds of the Company) and/or (ii) structured products linked to amongst others securities, indices and commodities. The exposure to collective investment schemes or structured products shall not exceed 90% of the total assets of the Sub-Fund.
The Sub-Fund will invest in bonds that have a credit rating of at least “B-” by S&P. The bond portfolio of the Sub-Fund is expected to have a maximum duration of up to 5 years. The Sub-Fund will invest in equities of medium to large capitalisation companies (market capitalisation in excess of USD1 billion) with a maximum of 30% 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 will be exposed to indices which are traded in the major futures markets in the EU and US and in other selected countries.
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 Sub-Fund is not expected to have any bias towards any specific issuer, industrial, geographical or other market sector.
The Investment Manager is also expected to invest in FDIs and ETFs for hedging purposes and the reduction of risk. For temporary or defensive purposes, the Sub-Fund may invest in other short-term fixed income securities, money market funds, cash and cash equivalents. The Sub-Fund may also retain amounts in cash or cash equivalents, pending re-investment and to meet operating expenses and redemption requests, if this is considered appropriate to the objective of maximising absolute returns. Uninvested cash may, subject to investment restrictions (if any), be held on deposit in a bank account in the name of the Sub-Fund. When appropriate the Sub-Fund may also employ leverage through borrowing.