How do we manage the assets?

 

The main categories of financial instruments in which the Fund invests are debt securities and bank deposits. The Fund invests primarily in securities issued or guaranteed by the Bulgarian State, another Member State or a third country and/or bank deposits with credit institutions domiciled in the Republic of Bulgaria, another Member State or a third country.

To achieve the investment objectives of "DSK Stability - Eurobonds 2", the Fund's activities are cyclical. Each investment cycle lasts approximately two and a half years and includes two main periods - "open" and "limited". The Fund operates continuously, with each new cycle starting immediately after the expiry of the previous cycle.

The first main period is called the "open period" and lasts approximately 3 (three) months.

The second main period is called the 'limited period' and lasts approximately two (2) years. The "limited period" shall commence on the first day following the expiry of the "open period".

During the "limited period," the Fund shall carry out its primary objectives of protecting the appreciation in the value of its investments - the net asset value per unit (NAVU) calculated as of the last business day of the "limited period" shall be no less than 102% of the NAVU calculated as of 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. There shall be one 'transitional period' within the 'limited period' - approximately twelve (12) months after the commencement of the 'limited period'.

The "transitional period" within the "limited period" is provided for in favour of investors to provide liquidity to their investments on better terms in certain cycles of the "limited period" - the costs borne by investors in selling and redeeming Units will be lower than during the remainder of the "limited period".
Investors should note that the price of Units purchased during the "limited period", including "transitional periods", is not subject to any appreciation protection 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 before 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.