The SYNERGY BOND Fund’s objective is receiving stable income with minimum market risk through investment into fixed income securities. Assets of the SYNERGY BOND Fund will be invested into fixed income securities, namely: local government, municipal, corporate and mortgage bonds, bonds of foreign issuers, and money market instruments in the following proportions:

• government bonds – up to 50%
• municipal bonds – up to 50%
• corporate bonds – up to 80%
• mortgage bonds – up to 50%
• money market instruments – up to 30%.

In order to lower the risk and to reach the high level of portfolio diversification, not more than 10% of the fund's net asset value should be invested into securities of one issuer (excluding securities, redemption and income of which is guaranteed by the Cabinet of Ministers of Ukraine).

The following risks are peculiar to the Fund’s investments:

• interest rate risk – bond’s value is a subject to the interest rate change; raising interest rate lowers the value of bonds
• default risk – a bond’s issuer might not be able to make a coupon or principal amount payment on time
• reinvestment risk – the fund might not be able to reinvest coupon/depreciation payments with the rate that equals yield to maturity
• prepayment risk – the fund faces a reinvestment risk in case of investment into mortgage bonds and their prepayments
• exchange rate risk – the fund’s portfolio will be a subject to changes in exchange rates in case of investing into bonds of foreign issuers.

Aiming at lowering the mentioned risks and increasing the return, the asset management company, an Open Joint-Stock Company “KINTO”, will adhere to the strategy of an active investment management on the basis of economic, financial, market analysis and investment estimates. Thus, the asset management company will:

• include in its portfolio only bonds of highly reliable issuers on the basis of horizon analysis;
• manage duration of the portfolio according to the anticipated interest rates changes; portfolio’s duration will be maintained within the range of 1 to 6 years on average;
• manage the structure of the portfolio according to the behaviour of the yield curve and anticipated changes of the yield spread between different market sectors;
• sell bonds before their maturity if their yield to maturity becomes much lower than the yield to maturity of the securities with the similar level of risk.

SYNERGY BOND Fund suits the best risk-averse investors.