Can you explain to me why my defense and sovereignty fund is decreasing?
Business life, market functioning, stock market law... The editorial staff of Le Figaro Patrimoine et Bourse will answer your questions and provide you with their expertise.
Your question concerns the product LCL Défense et Souveraineté whose Isin code is FR1CIBLU1455. Here is the key information document and the fact sheet on the Euronext website. A formula investment Please note, this is not a classic equity fund, but a structured financial product – legally, it is a debt security – also called “formula investment”: at a maturity known in advance (here, 2032), this product offers a repayment according to conditions fixed in advance (which, here and in the best case scenario, will represent 154% of the amount invested, which would represent a gross annual return of around 7.5%) according to a formula based on this underlying, which has been falling since the summer.
This is the main reason for the decline in this investment. Structured products, complicated products for individuals For an individual, structured products are relatively complex, much more so than funds in any case. Furthermore, these are tools whose purpose is to diversify a portfolio, and not to constitute its core.
Note that the Financial Markets Authority looked this year at “the readability and understanding” of structured products.
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- Le Figaro27 Oct, 07:02
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