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Raiffeisen
(Bulgaria) Balanced Fund starts public offering of units in the middle of March 2006.
The Fund implements its investment objectives taking moderate levels of risk.
The investment strategy implies that 60% of the assets should be invested in bonds. To further diversify the portfolio and
generate better profitability,
the Managing Company intends to invest up to 60% of the Funds’ assets in shares
of Bulgarian and foreign issuers;
up to 30% in units of other mutual funds and in equities, as well as up to 10% in derivative
instruments.
Characteristic of the typical investors
The Fund is suitable for investors with a long-term horizon
of their investment. Investing in units of the Fund is directed to both
individual and institutional investors who pursue liquid investment in
securities in order to be able to sell any or all of their shares more easily.
Investment objectives of the Mutual Fund
The basic investment policy objectives of the Mutual Fund are:
- Growth
– achieving sustainable growth of the Fund’s investment value in order to
ensure an increase of the price of one share
- Security
– the levels of the risk
taken are to be considered carefully in order to be in compliance with the
moderate investment policy of the Fund. The Fund will invest in
assets which bear low to moderate risk to investors
- Liquidity
– maintaining sufficient liquid assets within the limits, provided by law
and as specified in the
fund’s prospectus.
This will ensure the normal operation of the Fund with respect to
the mandatory redemption policies
of units and the profit distribution requirements
For the purpose of implementation of the basic investment
objectives the assets of the Mutual Fund will be managed according to an active
strategy which is based on market analysis and involves:
- Effective
management of the investment portfolio for profitability generation
- Asset type selection in order
to meet profitability expectations
- Investing in highly liquid
securities which will facilitate their subsequent sale. This will result in more accurate
valuation of the securities and thus entail an objective valuation of the net value of
assets in the Fund
- The
portfolio of the Mutual Fund will be well diversified. This will be achieved via careful stock selection process and
avoiding exposure to an individual market sector, company or issuer. In this way, maximum
diversification of the investment portfolio along with protection against
unfavorable price fluctuations on financial markets, will be attained
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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