The (LF) Target Maturity Bond Fund has a 5-year investment term and will be fully liquidated by 16.03.2029. It invests in fixed income securities, such as corporate and government bonds, in Greece and Europe. It aims to preserve initial capital and it is intended for investors who seek capital gains. It aims at an up to 3% annual dividend distribution for the next 5 years. It is authorised in Luxembourg.
The subscription period ended on 31.05.2024.
Investment objective
It follows an investment strategy with a predefined 5-year investment horizon and will be fully liquidated by 16.03.2029. It invests in bonds with remaining term to maturity before the fund’s maturity date on 15.03.2019. It aims to hold the bonds until their maturity (buy and hold), so as to secure the principal through the payout of the bonds at their maturity. Investments maturing up to 6 months before the fund’s maturity date, may be invested in money market instruments.
The fund aims to yield regular income in the form of dividends, once the market conditions from time to time and the current asset returns are taken into account. The annual dividend is estimated up to 3% for the next 5 years. Provided that there are no negative developments in the bond market, such as a credit event with issuers defaulting on bonds and securities included in the portfolio.
The (LF) Target Maturity Bond Fund offers wide diversification in government and corporate bonds, in Europe and Greece. It may also invest:
- Over 35% of its assets in EU government bonds.
- Over 50% in securities issued by the Greek government, Greek companies or companies operating in Greece.
- Up to 50% of its assets in high-yield securities, as rated by 2 of the big 3 credit rating agencies (Moody's, S&P, Fitch).
It may not invest in equities.
Investor profile
It is addressed to investors who seek capital gains and preserving their investment for a period similar to the mutual fund’s term.
