How do we manage the assets?
The Fund invests primarily in :
- securities issued or guaranteed by the Bulgarian State, another Member State or a third country, municipal bonds, corporate bonds and/or bank deposits with credit institutions domiciled in the Republic of Bulgaria, another Member State or a third country.
- other liquid financial assets within the meaning of Article 186 of ACISOCIUA, including derivative financial instruments to provide exposure to indices on equities of European companies. The strategy foresees that, through these instruments, the Fund will participate in the eventual increase in the value of the underlying asset on which the relevant derivative instruments are purchased, but at the same time be protected against a decrease in the value of the underlying asset.
In order to achieve the investment objectives of DSK Stability - European Equities 4, the Fund's activities are cyclical in nature. Each investment cycle has a duration of approximately 5 (five) years and includes two main periods. The Fund operates on a continuous basis, with each new cycle starting immediately after the expiry of the previous cycle.
The first main period is referred to as the "open period" and lasts approximately two (2) months.
The second main period is called the limited period and lasts approximately five (5) years. The "limited period" shall commence on the first day following the expiry of the "open period".
During the "limited Period", the Fund pursues its primary objectives of protecting 100% of the value of Unitholders' investments in the Fund and realizing a capital gain. Protection of 100% of the value of the investment during this period means that the net asset value per unit calculated as at the last business day of the "limited period" will not be less than the net asset value per unit calculated as at the last business day of the "open period".
A 'transitional period' is also provided for as part of the 'limited period'. The duration of the transitional period shall be approximately 1 (one) month. Within each 'limited period' there shall be four (4) 'transitional periods', the start of the first 'transitional period' being approximately twelve (12) months after the start of the 'limited period' and the start of each subsequent 'transitional period' being approximately twelve (12) months after the start of the preceding 'transitional period'.
The "transitional periods" within the "limited period" are provided for in the interest of investors in order to provide liquidity to their investments on better terms in certain cycles of the "limited period". In particular, during an "transitional period" the costs borne by investors in selling and redeeming Units will be lower than during the rest of the "limited period". If an investor wishes to purchase or redeem Units, they will be able to do so during the "transitional period" on better terms than during the rest of the "limited period".
Investors should note that investors who purchase Units during the "transitional periods" will not be able to rely on protection of 100% of the value of their investment at the end of the "limited period".
The Management Company (DSK Asset Management) will inform Unitholders and other investors of the exact date on which each "open"/"limited" period of the Fund's investment cycle will commence at least 30 days prior to the commencement of the relevant period through announcements:
- at all "counters" at which orders for purchase and redemption of Units of the Fund are accepted;
- on the website of the Management Company.
Detailed information on the instruments that may be included in the Fund's portfolio and its investment strategy can be found in the Fund's Rules.
- securities issued or guaranteed by the Bulgarian State, another Member State or a third country, municipal bonds, corporate bonds and/or bank deposits with credit institutions domiciled in the Republic of Bulgaria, another Member State or a third country.
- other liquid financial assets within the meaning of Article 186 of ACISOCIUA, including derivative financial instruments to provide exposure to indices on equities of European companies. The strategy foresees that, through these instruments, the Fund will participate in the eventual increase in the value of the underlying asset on which the relevant derivative instruments are purchased, but at the same time be protected against a decrease in the value of the underlying asset.
In order to achieve the investment objectives of DSK Stability - European Equities 4, the Fund's activities are cyclical in nature. Each investment cycle has a duration of approximately 5 (five) years and includes two main periods. The Fund operates on a continuous basis, with each new cycle starting immediately after the expiry of the previous cycle.
The first main period is referred to as the "open period" and lasts approximately two (2) months.
The second main period is called the limited period and lasts approximately five (5) years. The "limited period" shall commence on the first day following the expiry of the "open period".
During the "limited Period", the Fund pursues its primary objectives of protecting 100% of the value of Unitholders' investments in the Fund and realizing a capital gain. Protection of 100% of the value of the investment during this period means that the net asset value per unit calculated as at the last business day of the "limited period" will not be less than the net asset value per unit calculated as at the last business day of the "open period".
A 'transitional period' is also provided for as part of the 'limited period'. The duration of the transitional period shall be approximately 1 (one) month. Within each 'limited period' there shall be four (4) 'transitional periods', the start of the first 'transitional period' being approximately twelve (12) months after the start of the 'limited period' and the start of each subsequent 'transitional period' being approximately twelve (12) months after the start of the preceding 'transitional period'.
The "transitional periods" within the "limited period" are provided for in the interest of investors in order to provide liquidity to their investments on better terms in certain cycles of the "limited period". In particular, during an "transitional period" the costs borne by investors in selling and redeeming Units will be lower than during the rest of the "limited period". If an investor wishes to purchase or redeem Units, they will be able to do so during the "transitional period" on better terms than during the rest of the "limited period".
Investors should note that investors who purchase Units during the "transitional periods" will not be able to rely on protection of 100% of the value of their investment at the end of the "limited period".
The Management Company (DSK Asset Management) will inform Unitholders and other investors of the exact date on which each "open"/"limited" period of the Fund's investment cycle will commence at least 30 days prior to the commencement of the relevant period through announcements:
- at all "counters" at which orders for purchase and redemption of Units of the Fund are accepted;
- on the website of the Management Company.
Detailed information on the instruments that may be included in the Fund's portfolio and its investment strategy can be found in the Fund's Rules.
Investors should have in mind that the value of the funds’ units and the income from them may decrease, the profit is not guaranteed and they take up the risk of not recovering their investment in full. Before making a final investment decision, it is advisable for investors to familiarize themselves with the Prospectus and the Key Information Document of the respective fund. The documents are in Bulgarian and they are available on the website of DSK Asset Management AD (www.dskam.bg), and upon request can be obtained free of charge on paper at the office of the Management Company or at the offices of the DSK Bank AD, designated as a distribution point, every working day within their working hours.