Lux Media Investments strives to be a state-of-the-art investment platform for sophisticated, tax-efficient, and attractive capital market products that are fully aligned with our investors' requirements and preferences.
Lux Media Investments issues principal protected notes.
The aggregate collateral value of the underlying assets is no less than 100% of the face value of the notes.
The assets remain throughout the whole investment period in a dedicated legal structure (a compartment), separate from any other assets and liabilities, and remain exclusively reserved for the bondholders (senior creditors).
The assets remain during the full term under the control of an independent securities trustee to ensure no creditors other than the bondholders can claim the assets.
Lux Media Investments provides substantially higher returns than other investment-grade instruments, in particular over longer tenures. We do not make a secret of our income strategy. Our investment strategy targets income-producing assets with fast accelerating asset value and significant upside value potential.
As we timely dispose of these assets we can reinvest the principal capital and capital gains in new assets several times within the investment period. When sharing capital gains the bond investors can earn an extra premium on top of the coupon.
Responsible investing takes more than just developing predictive algorithms and applying speculative high-frequency trades. Even in-depth market research, industry trend analysis, and company due diligence are often insufficient to find the "goose with the golden egg". Our investment and risk policies are therefore largely based on the expert opinion of the media champions that have "boots on the ground".
Our investment committee consists of leaders with an impeccable track record of success in building, launching, and growing media enterprises with emerging technologies. Likewise, we only invest in enterprises that are founded and managed by practice leaders with the same experience.
Our focus is on funding post-start-up enterprises that are transitional but have the undisputed capability to become global industry leaders.
In order to ensure these companies make the desired breakthrough we assist them by establishing alliances with global media market leaders that have the experience to undertake commercialization and roll-out of products and services on a global scale.
Another important investment strategy is to select assets with substantial upside value potential and the ability to rapidly accelerate revenue streams and capital gains.
Most of these assets are about to make a major breakthrough in global markets or may become targets for acquisition or scheduled for IPOs. Timely disposal of the assets and exit from the enterprise are considered critical.
A well-balanced diversification of investments across industry sectors (i.e. music, sports, news) and applications, (content production, data analytics, distribution, monetization) and technologies (virtual reality, holographics, screenless display) as well as common credit risk policies will avoid potential concentration risk in the portfolio.
Lux Media Investment will seek additional collateral to secure the bond principal, including but not limited to rights, patents, receivables, shareholder equity contributions, and tax credits.
As the currency of the bond principal and the assets in which we invest are the same, the bondholders are not exposed to volatile currency exchange rates and unexpected currency exchange losses. We herewith avoid also the exorbitant cost of hedging and “stop loss” strategies.
We acquire only assets situated in countries with highly developed environmental standards, innovative regulatory frameworks, sophisticated legal systems, and strong contract enforcement standards. Investments are secured by high-quality assets with a value that is higher than the invested bond principal.
Lux Media Investments considers liquidity risk management of significant importance. We plan for optimal liquidity positions and adjust our cash positions and cash flows throughout the investment period to ensure we can meet coupon payments and pay for the cost of servicing the assets we have in our portfolio.
We make provisions to avoid liquidity shortages. We plan for timely asset disposals across the entire investment period and in particular for liquidity sufficiency at the bond maturity date. We have therefore installed a continuous liquidity audit procedure whereby the risk advisor regularly provides a certificate of liquidity sufficiency.
Lux Media Investments strives to be fully accountable for results. Net retained earnings are distributed to shareholders only after the principal and interest have been paid in full to the bondholders.
There are no commissions and costs at the expense of our bondholders’ coupon interest or deducted from the principal invested capital. In certain circumstances, we even share the remaining net proceeds deriving from the capital gains with our bondholders.
Lux Media Investments is a true financial innovator. Besides our unique investment and risk management strategies, our innovation efforts have caused to a major shift in the approach to funding of Lux Media Investments.
