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Main information

Fund name Long Term Income Fund Class C
Category Balanced fund
Legal structure Luxembourg Reserved Alternative Fund
Currency Euro

Investment object

The investment objective of the Sub-Fund over time is to preserve and increase the real value of its capital with a moderate level of risk. The Sub-Fund also has the objective to produce an annual income to be distributed to its Unitholders in the minimum proportion of two point five per cent (2.5%) of the NAV per Unit of the Sub-Fund.

Investment policy

The geographical scope of the Sub-Fund is global, and the related currency exposure will be accepted or hedged according to the appropriate risk balancing of the overall asset allocation. The main geographical focus, i.e. more than fifty percent (50%) of the Sub-Fund's assets, is on developed market, but the Sub-Fund can also invest in emerging markets. Following a disciplined investment process and according to efficiency criteria, each asset will be represented either by a selection of direct financial securities (both listed and unlisted) or by exchange traded funds or by actively managed UCITS and UCIs. The Fund shall not purchase more than twenty-five per cent (25%) of units of the same UCITS and/or other UCI.The overall equity exposure of the Sub-Fund will not exceed fifty-five per cent (55%), considering not only direct securities, but also exchange traded funds ("ETFs"), Underlying Funds and derivatives. The Sub-Fund's equity portfolio will be built to achieve, to the extent possible, an appropriate diversification by geography and sector. The total amount of equity investment held by the Sub-Fund in any issuers will be less than seven per cent (7%) of the total assets of the Sub-Fund. The Sub-Fund will not invest more than fifty per cent (50%) of its net assets in fixed income instruments or other transferable securities of the same nature also including ETFs, Underlying Funds and derivatives. Countries of issue will be mainly in developed markets, with the possibility to invest also in emerging and frontier markets (maximum fifteen per cent (15%) of the total assets of the Sub-Fund). The Sub-Fund will have a maximum net exposure to High Yield rated bonds equal to twenty per cent (20%) of the total assets of the Sub-Fund. Exposure to private markets instruments will not represent more than thirty-five per cent (35%) of total assets at the time of investment. It will be achieved through Underlying Funds both listed and unlisted, regulated and non-regulated.   Any investment in real estate or private equity will only be made through Underlying Funds. Within the more liquid group of alternative investment, the Sub-Fund will not invest more than thirty per cent (30%) of its net assets in a diversified portfolio of Underlying Funds that will mainly pursue absolute return strategies including, but not limited to: Event driven strategies, Long-short strategies, Relative value strategies.The Sub-Fund shall limit its allocations to a single asset or Underlying Fund of an illiquid nature to 15% of its NAV. The Sub-Fund shall limit to a maximum of thirty-five (35%) of the NAV investments with a longer liquidity horizon than the maturity of the relevant Lock-Up Period.

Legal information

Depository bank CACEIS Bank Luxembourg SA
Audit firm EY SA
How to subscribe it

The Funds managed by Ersel Gestion Internationale S.A. can be subscribed by sending an order to the Transfer Agent and Custodian Bank of the Fund. Investor Services Team:

  • Email address: fds-investor-services@caceis.com
  • Phone number: 00 352 47 6759 99
  • Fax number: 00 352 47 67 70 37
  • Business hours: 9 a.m. to 6 p.m. CET
  • Languages: Inglese, French, Spanish, Italian, German, Dutch

For institutional investors the orders can also be transmitted through the following distributors: Allfunds Bank, Mfex, Fund Channel.
NAV calculation frequency Quarterly
Fund units publication Fundsquare.net

Fund ticker

ISIN code LU2369299735

Charges

Entry charge None
Exit charge None
Maximum management fees 1.20% on an annual basis
Performance fee None
Minimum amount of the first subscription 125.000 euro
Minimum amount of subsequent subscriptions 50.000 euro

In the first quarter, the Long Term Income share class recorded an increase of +1.63% (Class A), bringing the return over the last 12 months to 10.02% (including the dividend paid in December).

Monthly comment from the manager

During the period, also supported by the contribution of hedging strategies, equity portfolio performance was slightly better than that of a broad global equity index, although still negative in absolute terms. Exposure to the energy sector was the main positive contributor, while the technology sector was the largest detractor. During the quarter, the small position in the emerging markets fund Skerryvore was fully exited, and several changes were implemented within the direct equity portfolio. In particular, positions in Hexagon, Berkshire Hathaway, Adobe and UnitedHealth were sold to fund new investments in Meliá, Zoetis, Renault, Edenred, TD Synnex, ServiceNow and SAP.

The overall equity allocation approach remains prudent and, given the current economic and valuation environment characterised by a high degree of uncertainty, highly diversified across geographies, sectors and investment styles. Equity exposure remains close to 40% of total assets. The fixed income portfolio delivered a positive contribution over the quarter. Despite carrying a higher credit risk compared with a Global Aggregate index (currency-hedged), the portfolio generated a positive return, whereas the benchmark recorded a negative performance.

This outcome was driven by the portfolio’s limited duration and its bias towards emerging market (EM) debt, which held up well despite the complex international backdrop in March. Overall fund duration remains around two years. However, following the recent upward movement in interest rates, we believe that extending the average maturity of the fixed income portfolio could become increasingly attractive over time. In January, a new EM debt fund, IVO EM Corporate Debt, was added to the portfolio. The fund, focused on corporate issuers, offers an attractive risk-return profile and provides a good complement to the existing portfolio of European corporate bonds.

Fixed income investments account for approximately 30% of the portfolio, of which around 5% is held in cash. Approximately 33% of assets are invested in alternative and private market strategies, which generated a material contribution during the quarter (estimated at around 1.5%). The Helikon long-short fund once again delivered a satisfactory performance, driven primarily by positions in gold-related equities. Decalia Private Credit Strategies and Aberdeen Global Private Markets also performed particularly well.

During the quarter, private credit was under increased scrutiny due to potential liquidity mismatches and software-related risks (disruption risk linked to artificial intelligence). We would like to reassure investors that the portfolio focuses exclusively on strategies with no liquidity mismatch risk and that overall exposure to software is relatively limited and primarily European, resulting in even lower potential impact.

Offer documents

Document Date of the document Download
KID 03/03/2025 PDF get_app
OFFERING DOCUMENT 13/12/2024 PDF get_app

Article 8 Policy

Document Date of the document Download
Long Term Income - Responsible Investment Policy 04/06/2025 PDF get_app

Sustainability related disclosures – Article 8

Document Date of the document Download
Web Disclosure 04/06/2025 PDF get_app
Long Term Income - Pre-contractual disclosure information RTS 04/06/2025 PDF get_app
Long Term Income - Periodic Disclosure RTS 23/05/2025 PDF get_app

Notice

Document Date of the document Download
Notice change of name Philanthropy into Long Term Income 03/07/2023 PDF get_app
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