Portfolio Diversification


In order to ensure a risk diversification, investments will be spread over several assets, processes, projects and companies in different countries and sectors.

The portfolio diversification will be ensured according to the rules provided by the CSSF’s Circular 07/309 of 3rd August 2007 on risk spreading in the context of specialised investment funds according to which a sub-fund of an umbrella specialised investment fund may not invest more than 30% of its assets or commitments in securities of the same type issued by the same issuer.

The number of investments in the Portfolio may be limited and may vary at the discretion of the AIFM which will be continuously looking for the best opportunities and may therefore buy or sell assets according to the Equity Power Fund ‘s objectives and Investment Policy.

  • Industry Diversification: The Equity Power Fund seeks to diversify its portfolio by investing in a broad range of businesses in a variety of industries to ensure that investment returns are less dependent upon business cycles in particular industries. However the Fund has not imposed any specific limits with respect to the number or value of the investments it may make in certain industries.
  • Stage of Development: The Equity Power Fund also seeks to diversify its investments in businesses at different stages of development so as to balance appropriate risks with desired returns. The Equity Power Fund will consider investments in new businesses, expansion of existing businesses and restructuring and turnaround investments. The Equity Power Fund will also entertain investment opportunities resulting from products or services developed from specific research.

The above-mentioned provisions of the CSSF’s Circular 07/309 of 3rd August 2007 on risk spreading related to specialised investment funds will have to be complied with on an ongoing-basis after the completion of a ramp-up period of 24 months starting at the launching date of the Equity Power Fund.