Protected Equity 2

Fund performance

Basic information

Who is the fund for

The mutual fund is intended for conservative investors investing in euro who wish to participate in the growth of equity markets and protect capital against risky maximisation of return. The recommended investment horizon is at least two years, starting on the first day of the protection period (for detailed information about the protected period, see the Fund Details or the Fund Statute).

Fund detail

Fund characteristics:

• A mixed fund in which the ratio between the equity and the bond is managed by the CPPI (Constant Proportion Portfolio Management) model
• For moderately conservative investors
• Recommended investment horizon is over 2 years
• The fund’s objective is to participate in the growth of equity markets in a 2-year horizon and ensure that the value of the invested share at the end of the specified period is equal to or higher than the value at the start of the investment period.
• Low market risk
• The fund invests in bonds (government, corporate and mortgage bonds), money market instruments and equity funds traded on the stock exchange that form a risk component
• Investments largely in EUR
• The fund is not regionally or sector limited

Investment strategy:

The focus of the investment policy is to invest the mutual fund’s assets mainly in government bonds, municipal and corporate bonds and mortgage bonds without regional restrictions, in unit certificates of other standard mutual funds, units of open special mutual funds or securities of other foreign collective investment undertakings (Exchange Traded Funds). The aim of the investment policy is to actively participate in the growth of the stock and bond markets through the active management of the mutual fund over a period of 2 years and at the same time to ensure that the value of the unit is equal to or higher than at the beginning of the investment period.

The specified periods will always be two years. The current period began to run on April 1, 2021, and each subsequent specified period begins on the first calendar day following the end of the previous specified period (the next specified investment period begins to run on April 1, 2023). The Constant Proportion Portfolio Insurance (CPPI) hedging method is used to ensure the return on the mutual fund’s investment, which helps to optimize the appropriate ratio between individual asset classes.

Investments in financial derivatives are used for the purpose of achieving returns as well as for the purpose of hedging against mutual fund risk.

Factors influencing the development of the fund’s value are in particular:

Significant impact:

General market risk arising from changes in the general level of market prices or interest rates.
Market risk arising from changes in the market value of positions in the mutual fund caused by changes in variable market factors, such as interest rates, foreign exchange rates, share prices or a deterioration in the issuer’s creditworthiness.

Average impact:

Economic growth of the economy in the countries to which the mutual fund’s investments will be directed This type of risk has an average effect on the value of the unit.
Specific market risks arising from a change in the price of only one issuer of the relevant financial instrument, which is caused by factors related to the issuer of the relevant financial instrument and in the case of financial derivatives of the issuer of the relevant underlying instrument.