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Raiffeisen (Bulgaria) Bond
Fund starts public offering of units in the middle of March 2006. The
Fund implements its
investment objectives taking a low to moderate risk. The investment strategy predisposes that 90 % of the assets are to be invested in bonds. In general investing in
Treasury Bills and bonds is considered to be less risky than investing in equities, as bonds are issued and guarantied
by the state or the municipalities. Fixed profit securities of international corporations and
institutions which have an investment rating awarded by international rating
agencies are also considered
as potential investment goals.
Characteristic of the typical investor
The shares of the Fund are suitable for investors who prefer well diversified portfolio investments in financial
instruments, and meanwhile
pursue relatively high revenues and growth of their savings at low to moderate levels of risk. Taking into account the structure of
the Fund, it is not recommended
for investors with short-term horizon who follow a strategy of
day-to-day observation of the market conditions, as well as for investors who intend to trade
regularly with shares of the Fund in order to generate a short-term capital
profit. The Fund is suitable for investors with a more long-term horizon of
their investment.
Investment objectives of the mutual fund
For the purpose of implementation of the basic investment objectives the
assets of the Mutual Fund shall be managed according to a strategy, based on
profound market analysis including:
- Effective management of the investment portfolio for generation of expected
profitability
-
Conservativeness in structuring the investment portfolio – the portfolio of
the Mutual Fund will mainly consist of bonds
- Careful selection of
the type of assets in which the Fund invests, according to the expected profitability
- The Fund will invest its assets in securities with high degree of liquidity
which will permit their subsequent sale. This will help to achieve the most
correct valuation of the securities and an objective valuation of the net value
of assets in the Fund
-
The portfolio of the Mutual Fund will be diversified.
Investing in mutual funds involves certain risks. The value
of the shares and the
income from them may go down. Profit is not guaranteed and there is a risk for
investors may not recover the full amount of money. Investing in Mutual Fund
are not guaranteed by the Guarantee Fund, established by the State or any other
warranty. Future performance of the contract funds are not necessarily
associated with results from previous periods.
The presented
information should not be considered advice for investing in financial instruments,
including units of mutual funds, offered by Raiffeisen Asset Management
(Bulgaria). It is recommended for investors to first familiarize themselves
with the prospectuses of the funds and the rules for Mutual funds before taking
any investment decisions. The full prospectus and additional information for
the funds can be received in any of the offices of Raiffeisenbank (Bulgaria) as
well as on the website of RAM www.ram.bg.
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