The Opportunity Global Bond 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.
The Investment Objective of the Sub-Fund is to achieve absolute returns in the medium to long-term (over a 5 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.
In order to achieve its objective the Sub-Fund shall invest primarily in a diversified portfolio of instruments including but not limited to (i) listed transferable securities including bonds and equities, (ii) index (mainly equity and commodity based indices) futures, (ii) commodity (mainly agricultural, livestock, energy, precious metals and industrial metals) derivatives, (iv) spot and forward foreign exchange contracts, and (v) Exchange Traded Funds.
The Sub-Fund may invest in derivatives linked to commodities however such holding will never lead to the hysical delivery of the relevant commodity. The Sub-Fund may invest in the major currency pairs including but not limited to GBP/ USD, AUD/ USD, EUR/ USD, USD/ CHF, USD/ JPY and USD/ CAD. The Sub-Fund will generally invest in assets denominated in EUR, CHF, USD and GBP. 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 an 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 in these 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 or structured products shall not exceed 90% of total assets of the Sub-Fund. The Sub-Fund is not expected to have any bias towards any specific issuer, industrial, geographic or other market sector or capitalisation. The Sub-Fund will invest in bonds that have a credit rating of at least “B-” by S&P, provided that the Sub-Fund may invest a maximum of 60% of its assets directly in non-rated bonds. The bond portfolio of the Sub-Fund is expected to have an average duration of 3 to 5 years. The Sub-Fund shall 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 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 maximizing 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.