“Nordlux Strategie” – added value through conservatively managed option strategies

With our newly implemented fund “Nordlux Strategie” (N.B.: the German word ´Strategie´ translates as ´strategy´), NORD/LB Luxembourg covers another investment area that so far has been barely accessible for most clients:

• Core strategy of the fund is the generation and receipt of option premiums through covered option writing.
• The various underlyings compose a broad, internationally diversified equities portfolio, consisting both of indices and single stocks.
• Due to the construction of the fund, the participation in equity markets development is limited, according to the option writer positions in equities and equity index ETFs contained in the fund.
• Pursuant to the conservative approach of the fund, primarily out-of-the-money options will be considered.
• The required margin and other liquidity positions will principally be invested in cash, money market, and short-term bonds (at least rated single “A”).
  

Advantages of “Nordlux Strategie”:

• Active management by NORDL/LB Luxembourg´s fund management
• International diversification
• Total return approach
• Bigger risk buffer towards stock exchange movements through out-of-the-money options
• Taking advantage of higher option premiums in selected single stocks (as opposed to indices)
• No issuer risk (unlike certificates for example)
• Access on a broad basis to the rather complex world of options and option strategies

Our advisers at NORD/LB Luxembourg will be happy to assist you with any questions you may have.