These Investment Guidelines define the permitted investments, risk limits and operational constraints applicable to the Dedicated Internal Fund (the “Fund”) established within a Capital Redemption Policy issued by a Luxembourg-authorised insurance undertaking (the “Insurer”).
The objective of these Guidelines is to ensure prudent asset management, regulatory compliance and alignment with the policyholder’s risk profile.
The Fund seeks long-term capital preservation and growth, consistent with the policyholder’s documented investment objectives and risk tolerance.
No assurance is given that the investment objective will be achieved.
Subject to applicable Luxembourg insurance regulations, the Fund may invest in:
The following diversification principles shall apply, subject to regulatory thresholds and Insurer approval:
The Insurer may impose stricter limits where required for risk management purposes.
Unless expressly authorised, the Fund shall not invest in:
The Fund shall maintain sufficient liquidity to meet policy obligations, including redemptions and charges, as determined by the Insurer.
Illiquid assets may be held only where consistent with the policyholder’s investment horizon and regulatory constraints.
The Fund’s assets shall be valued in accordance with the Insurer’s valuation policy and applicable accounting standards.
Ongoing monitoring shall include compliance checks against these Guidelines and applicable regulatory requirements.
An external investment advisor or discretionary manager may propose investment decisions within the framework of these Guidelines.
Final approval of investments remains with the Insurer, who retains full responsibility for compliance and oversight.
Any breach of these Guidelines shall be promptly identified and addressed.
Remedial actions may include asset rebalancing, disposal or other measures as deemed appropriate by the Insurer.
These Investment Guidelines may be amended by the Insurer to reflect changes in legislation, regulatory guidance or internal risk policies.
Material changes shall be communicated to the policyholder.
These Investment Guidelines are governed by and construed in accordance with the laws of the Grand Duchy of Luxembourg.