Vanguard FTSE All-World High Dividend Yield UCITS ETF (VHYL)

Overview

The LEO Portfolios SIF – Flexible Defensive is a sub-fund with the primary goal of generating stable capital growth over a minimum duration of five years. It adopts a defensive strategy, meaning it focuses on minimizing risks while seeking steady growth. Unlike some investment funds that target quick returns by taking higher risks, this sub-fund prioritizes the long-term security and preservation of its investors’ capital. This is primarily achieved through an active management approach, where investments are diversified across multiple asset classes via other open-end investment funds. The absence of a reference index for benchmarking its performance allows for greater flexibility in the selection of assets, which can include equities, bonds, cash, and even bank deposits or money market instruments. Furthermore, to mitigate adverse market fluctuations, the sub-fund may employ derivatives as part of its risk management strategy.

Products and Services

• Active Management of Investments

  The LEO Portfolios SIF – Flexible Defensive is actively managed, implying that its management team consistently monitors the market landscape to make timely investment decisions. This dynamic strategy aims to capitalize on opportunities for capital growth while maintaining a defensive posture against potential market downturns.

• Investment in Open-end Funds

  One of the core strategies of the sub-fund is investing in a diversified portfolio of other open-end investment funds. This method allows for a broad exposure to various asset classes across different sectors and geographical regions, enhancing the potential for risk-adjusted returns while spreading the investment risks.

• Defensive Approach

  Aiming for stability, the sub-fund employs a defensive approach in its investment strategy. This involves selecting funds that themselves invest conservatively across different asset classes such as equities, bonds, and cash. The goal is to achieve stable growth with minimized volatility, making it suitable for investors seeking long-term, low-risk investment opportunities.

• Bank Deposits and Money Market Instruments

  In addition to fund investments, the sub-fund may allocate part of its capital to bank deposits and money market instruments. These instruments offer liquidity and safety, serving as a buffer during market turbulences and further aligning with the sub-fund’s defensive investment philosophy.

• Use of Derivatives for Risk Management

  The strategic use of derivatives is another tool at the disposal of the sub-fund to manage and reduce market risks. Derivatives can provide protection against market volatility, potentially safeguarding the sub-fund’s performance from negative impacts due to adverse market movements.