EURO Bond

Fund performance

Basic information

Who is the fund for

The fund is suitable for conservative investors who do not wish to be exposed to the exchange rate risk, wish to appreciate their funds in euro for a minimum of three years and prefer a lower steady return without major fluctuations. The fund is a suitable alternative to current accounts and long-term time deposits in EUR.

Fund detail

Fund characteristics:

• For conservative investors
• Recommended as an alternative to a term deposit
• The recommended investment horizon is at least 3 years.
• Capital protection is preferred to return maximisation
• Conservative Eurobond fund
• Investments only in EUR
• Low market risk
• The fund invests in bonds (government, corporate and mortgage bonds) and money market instruments (bills of exchange, treasury bills)
• The fund also invests in bond mutual funds

Investment strategy:

The fund’s objective is to ensure a stable return, without significant fluctuations over a period of three to five years, consisting mainly of capital gains from debt securities in the portfolio. The fund is one of the mutual funds with a conservative approach to risk and return, its focus falls into the category of bond mutual fund. It invests primarily in government bonds of the Slovak Republic, government bonds of other countries, bonds of other entities issued in EUR and in financial derivatives in order to hedge the Fund’s assets against interest rate risk and in order to achieve additional portfolio returns. The mutual fund has no regional or sectoral focus.

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

General market risk, which means the risk of loss resulting from changes in the general level of market prices or interest rates.
Market risk means the risk of loss for a mutual fund resulting from a change 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 creditworthiness of the issuer.
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 share.
Specific market risk, which means the risk of loss resulting from a change in the price of only one issuer of a given financial instrument.
Interest rate risk arising from changes in interest rates.
The risk of an event due to unforeseeable circumstances that cause the market value of a financial instrument to decline suddenly or unexpectedly.