Arcano Low Volatility European Income Fund (LoVEI)

Arcano Low Volatility European Income Fund (LoVEI)

Arcano Low Volatility European Income Fund, (the “Fund”) is a vehicle launched in 2018 that invests in a diversified European portfolio of floating rate bonds, short-term fixed rate bonds and corporate loans (maximum 10%), with the objective of accumulating stable and recurring income from bond coupons while minimizing volatility by overweighting floating rates and "senior secured" assets. The underlying assets are mainly qualified high yield bonds and loans issued by companies domiciled in or carrying out their commercial activities mainly in the European Union or other European countries with long-term sovereign debt of at least investment grade rating (minimum BBB - by S & P).

The target range of the Fund's annual return in the medium-long term is 4-7%, with a target of annual volatility below 3% and an objective of average duration of less than 2 years. The Fund applies a conservative management approach within the European high yield bond and loans market, overweighting floating-rate assets and income generation via coupon payments, with a buy-and-hold strategy. The methodology is "long only" through fundamental analysis and close monitoring of all Fund positions.