The Investment objective of the Fund is to generate a variable annual income to be distributed through a flexible approach.
To achieve its objective, the Fund will tend to invest 100% of its assets in long dated Italian Government Bonds (BTPs) and will swap the BTP performance against a variety of profiles including strategies based on Equities, Rates, FX, Credit, Funds.
Swap will be entered with primary financial institutions in open architecture. They will provide exposure to various underlyings:
- Linear exposure (delta 1)
- Structured payoffs (synthetic structured product)
In its initial allocation, the Fund will enter into a swap to get exposure to an tier-1 investment bank’s “Put Writing Strategy”.
The returns will be distributed at least once a year.
The allocation will vary over time according to the opportunity set identified by the Management Team.