The Fund has been established as a Sub-Fund by the Variable Capital Investment Company Easternmed Funds VCIC Plc. The Company was granted UCITS license no. UCITS 07/78 on 22/03/2016 by the Cyprus Securities and Exchange Commission (CySEC).
The fund aims to preserve capital and generate long-term capital growth, subject to moderate volatility. The investment horizon of the fund is 10+ years. The strategy of the fund is value oriented and opportunistic.
The fund invests in highly liquid assets mainly comprising of listed equities in large capitalization and well established companies predominantly in Europe, but also in the US and emerging markets to a lesser extent. Equities will comprise approximately 65% of the fund’s assets. As an indication only, European equity will comprise up to 75% of direct equity investments while another 15% will be allocated to the US and 10% to select Emerging Markets.
The fund’s equity investments have a bias to financial services industry and to industries with real rather than intangible assets. The choice of equities is guided by a number of parameters which among others include large capitalization, secure, high and growing dividend policy, strong record of revenue and profit growth and low to average valuation.
The fund may also invest approximately 15% of its assets in long-only equity funds (UCITS and other UCIs) to supplement its direct equity investing activities and diversify its sources of return.
Finally, the fund may invest part of its assets, approximately 20%, in fixed income securities, including cash. Fixed income securities shall include investment grade corporates, emerging market bonds and some high yield paper of issuers, with a rating of no lower than B-.
The use of leverage is prohibited while derivatives will be used purely for hedging purposes.
The risk and reward indicator
The risk category shown is not guaranteed and may shift over time. The lowest category (i.e. category 1) does not mean risk-free investment. The fund is classified in category 6 (out of 7 categories in total) as it predominantly invests in equities, whose price is relatively volatile.
Investment in investor shares of the Fund has no guaranteed return and past performance does not guarantee future returns.