Raiffeisen Conservative Fund Bulgaria (former “Raiffiesen (Bulgaria) Liquidity Fund”) starts public offering of units since March 2006. The fund invests up to 100% of its assets in government debt, issued and/or guaranteed by the Republic of Bulgaria, with maturity of up to 5 years; up to 10% in corporate bonds of Bulgarian issuers; no less than 5% in cash and bank deposits with maturity of up to 12 months. The investment purpose of the fund is to realize capital gains by taking low to moderate risk.
Units of the fund are suitable for investors, looking for sustainable growth of their savings while taking low to moderate level of risk, by investing in a portfolio of government securities and money market instruments. Considering the fund’s expected structure, MF Raiffeisen Conservative Fund Bulgaria is not recommended for investors who pursue a strategy of daily monitoring of market conditions, as well as for investors who intend to trade with units of the fund on a regular basis in order to achieve short-term capital gains. Investing in the fund is suitable for both individuals and institutional investors, who seek a liquid investment in securities, with the ability to sell part or all of their units and receive their value including accumulated yield.
The investment objective of the fund is to increase the value of shareholders’ investments through realizing capital gains and income from interest rates. Financial instruments with good liquidity and growth potential are chosen in order to achieve the fund’s objectives. The fund invests up to 100% of its assets in government debt, issued and/or guaranteed by the Republic of Bulgaria, with maturity of up to 5 years; up to 10% in corporate bonds issued by Bulgarian issuers; no less than 5% in cash and bank deposits with maturity of up to 12 months.
In order to achieve its main investment objectives, the fund follows a strategy, which is based on thorough market analysis and includes:
Investing in mutual funds is related to certain risks. The value of the units and income generated from them may decrease. Earnings are not guaranteed and there is a risk for the investors to not recuperate the full amount of their investments. Investments in mutual funds are not secured by a Guarantee Fund, established by the State or any other type of guarantee. The future performance of mutual funds are not necessarily related to the results of previous periods.
The information presented is not a recommendation for investment in financial instruments, including units of mutual funds organized and managed by Raiffeisen Asset Management Bulgaria and should not be construed as such. For investors it is advisable to get acquainted with the current prospectuses and rules of mutual funds before deciding to invest. Full prospectuses and additional information about mutual funds may be obtained at the offices of Raiffeisen Asset Management (Bulgaria) EAD and Raiffeisenbank (Bulgaria) EAD, as well as on the website of RAM www.ram.bg.