Investment strategy

The Fund's objective is to receive stable return at the level of two bank deposit rates (in Hryvnya). In order to lower risks the Fund will adhere to the dynamic insurance strategy upon achieving by the Fund the level of the projected target return.

To achieve the target, the Fund will use all available investment possibilities of the Ukrainian market: first of all investing into shares of the leading Ukrainian companies, as well as investment into bank metals, fixed income securities (state and corporate bonds), real estate.

It is planned that the range of investment of the Fund’s assets will widen together with appearing and development of corresponding technologies at the market. The Fund will be open to the new instruments such as good order securities (e.g. warehouse receipts) and derivatives, the latter will be used primarily for hedging investment. This will allow increasing stability and reliability of the Fund by limiting relatively high initially accepted risks of its portfolio.

In order to lower the risk of decrease of investment value, the Fund will diversify its investments: no more than 15 % of the Fund’s total assets will be invested into one and the same position. Besides, the Fund will comply with all existing legislative restrictions on investment directions and limitations, stipulated for Ukrainian for non-diversified funds.

While choosing shares as investment targets for the Fund, the asset management company will primarily pay the highest attention to the most liquid securities, their stake in the portfolio can reach two thirds of the Fund’s net assets. At the same time up to 30% of the Fund’s assets can be invested into the non-liquid shares with high growth potential which can be realized within several years.

The Fund will allocate no more than 30% of its assets at deposits and cash, where the increase to such a level will be due to unfavourable prognosis for market conditions or formation of the fund for paying dividends to participants.

The Fund will invest only into the potentially most profitable precious metals for relatively long (more than 1 year) period of time, which will allow avoiding short-term fluctuation of market price.

The fund will invest into the fixed income securities on the basis of the analysis of scenarios of total yield behaviour at expecting the growth of the debt instrument value due to the decrease of interest rates at the market.

The Fund will invest into real estate directly or indirectly through corporate rights, mainly into commercial real estate (trading centres, offices) or development projects.

In addition to passive management, the Fund’s investment policy stipulates the active portfolio management: on the basis of constant monitoring the transactions will be held, as the result of which the funds from selling the securities with depleted potential will be reinvested into the more perspective objects.

The Fund will review its portfolio structure due to the change of investment efficiency of different classes of assets and their separate constituents on the basis of economic, financial and market analysis.

The Fund’s lifetime is 8 years. The Fund’s profit is expected to be distributed annually in the form of dividends in case the Fund’s return exceeds the average weighted rate of the National bank of Ukraine.

The Fund suits best the investors with long-term horizon wishing to receive their income annually. The achievement of the target by the Fund within one separate fiscal year is possible only under the condition of the Ukrainian stock market growth.

The Fund is the closed-end fund and will not redeem the investment certificates within the term of its activity. The settlements with the inventors will be done on termination of the Fund’s activity, i.e. its liquidation.

The asset management company highlights that investors solely carry the risk of the investment certificate value decline. Representations of any party about appreciation of investment certificates in the future should be considered as assumptions only. Value of investment certificates may go up or down. Historic performance of investment certificates does not determine future gains.

* On making the relevant changes into the legislature.