Raiffeisen Conservative Fund Bulgaria

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.

Characteristic of the typical investor

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.

Investment objectives of the mutual fund

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:

• Effective management of the investment portfolio in order to generate yield;
• Conservative structure of the investment portfolio – mainly composed of debt instruments, issued and/or guaranteed by the Republic of Bulgaria, with maturity of up to 5 years;
• Choice of the asset type based on expected yield;
• Investing the fund’s assets in financial instruments, characterized with high level of liquidity, which allows fast subsequent sale. This will help achieving fair valuation of the financial instruments and the NAV of the fund’s assets.
• The mutual fund’s portfolio is diversified. Instruments, in which the fund invests, are picked so that the investment portfolio contains Bulgarian debt securities from at least 6 different emissions. The investment cannot exceed 30% of the asset value in a single emission.