Flossbach von Storch - Foundation Funds


Responsible investing


The Flossbach von Storch - Foundation Funds are specially tailored to the needs of investors who think sustainably. For foundations in particular, responsible handling of the foundation assets is an indispensable prerequisite for fulfilling the founder’s intentions.


What are the characteristics of the Foundation Funds?

  • An investment process based on an in-house analysis that takes sustainability criteria into account.
  • A robust portfolio structure that is the basis for long-term substance preservation.
  • The defensive multi-asset strategy of the Flossbach von Storch - Foundation Defensive Fund should preserve the assets over the medium term and provide regular moderate distributions.
  • The growth-oriented multi-asset strategy of the Flossbach von Storch – Foundation Growth Fund should generate attractive long-term returns.

“Our primary objectives are to protect the capital entrusted to us and to obtain adequate returns in the long term – despite low interest rates. We are very aware that regular distributions are essential for foundations.”

Elmar Peters,
Responsible Fund Manager

“Responsible investing is important to many investors – including us. The issue of sustainability has always been firmly anchored in our investment strategy.”

Stephan Scheeren,
Responsible Fund Manager


Opportunities

  • Flexible investment policy without benchmarking.
  • Risk is broadly diversified by investing in a range of asset classes (e.g. equities, bonds, convertible bonds, and precious metals (indirect)). Market potential can be exploited by investing across a wide range.
  • Investing in assets denominated in a foreign currency can have a positive impact on unit values as a result of exchange-rate movements.
  • Derivatives can be used to increase potential yields.
  • Precious metals (indirect) (e.g. in the form of gold) can be used to increase potential yields.

Risks

  • Market risks: the securities in which the Management Company invests the sub-fund assets present opportunities for gain but also the possibility of risk. The ESG criteria for sustainable financial instruments restrict the selection of target investments in terms of category and number, sometimes considerably. If a sub-fund invests directly or indirectly in securities and other assets, it is subject to many general trends and tendencies on the markets, which are sometimes attributable to irrational factors, particularly on the securities markets. Losses can occur when the market value of the assets decreases against the cost price. If a unit holder disposes of units in a sub-fund at a time when the quoted price of the sub-fund assets is less than at the time of investment, then the unit holder will not recover the full value of the investment. While each sub-fund constantly strives to achieve growth, growth cannot be guaranteed. The risk exposure of the investor is, however, limited to the sum invested. There is no obligation to make additional capital contributions beyond investors' investments.
  • Currency risks: if a sub-fund holds assets which are denominated in foreign currencies, it shall be subject to currency risk. In the event of a devaluation of the foreign currency against the reference currency of the sub-fund, the value of the assets held in foreign currencies shall fall.
  • Credit risks: the fund may invest part of its assets in bonds. The issuers of these bonds could become insolvent, causing the bonds to lose some or all of their value.
  • Interest-change risks: investing in securities at a fixed rate of interest is connected with the possibility that the current interest rate at the time of issuance of a security could change. If the current interest rate increases as against the interest at the time of issue, fixed-rate securities will generally decrease in value. Conversely, if the current interest rate falls, fixed-rate securities will increase.
  • Risks relating to the use of derivatives: the fund may enter into derivative transactions for the purposes listed in the KIID and the sales prospectus. This means increased opportunities, but also increased risk of losses. The use of derivatives to hedge against losses may also reduce the profit opportunities of the fund.
  • Risks of precious metals and commodities: precious metals and commodities may be subject to greater price fluctuations. Trading prices may also fall.

LEGAL NOTICE

This is not an offer to buy or subscribe to securities. The information does not constitute investment advice or other recommendations. The value of any investment may fall or rise, and you may not get back the amount invested. You should consult with your advisor before making any investment.

For the summary of investor rights with additional information regarding legal disputes, please refer to the "Supplementary Information Sheet for Investor Information" document at https://www.fvsinvest.lu/Anlegerrechte. The Management Company may make any country-specific adjustments to the distribution authorisation, including the revocation of distribution regarding its investment funds.

Visit the fund details page of theFlossbach von Storch - Foundation Growth RFund here or the fund details page of theFlossbach von Storch - Foundation Defensive RFund here. There you will find performance data, the portfolio structure and additional detailed fund information.

Various specialist terms from the world of finance are explained in our Glossary.