How do we manage the assets?

The Fund shall invest predominantly in:
  • securities issued or guaranteed by Republic of Bulgaria, by another member state of the EU or a third state, municipal bonds, corporate bonds and/or bank deposits in credit institutions domiciled in Republic of Bulgaria, another member state of the EU or a third state
  • other liquid financial assets within the meaning of Art. 38 of the ACISOCIVA including derivative financial instruments. The Contractual Fund may invest in shares/units of collective investment schemes, domiciled in the Republic of Bulgaria or abroad
In view of achievement of the investment goals of DSK Stability - German Equities, the activity of the Fund has cyclical nature. Each investment cycle lasts approximately 5 (five) years and includes two basic periods. The Fund implements its activity without interruption and each new cycle starts immediately after the end of the previous cycle. The first basic period is called “open period” and its length is approximately 1 (one) month. The second basic period is called “limited period” and its length is approximately 5 (five) years. The “limited period” starts on the first day after the end of the “open period”. During the “limited period” the Fund implements its main goals – assurance of the protection of the 99 (ninety nine) per cent of the value of investments of the unitholders of the Fund and realization of capital gain. Protection of the 99 (ninety nine) per cent of the value of the investment during this period means that the net asset value per unit, calculated as of the last working day of the “limited period” should be no less than 99 (ninety nine) per cent of the net asset value per unit calculated as of the last working day of the “open period”. The main part of the assets of the Fund during the “limited period” will be invested in securities issued or guaranteed by the Republic of Bulgaria, by another member state of the EU or a third state, municipal bonds, corporate bonds and/or bank deposits. In order to realize a capital gain, part of the assets of the Fund may be invested in such way so as to ensure an exposure towards German equity indices, mostly through investments in derivative financial instruments. A "Transitional Period" is also envisaged - as part of the "Limited Period". The duration of the transitional period is approximately 1 (one) month. There are 4 (four) transitional periods within each “limited period”, as the beginning of the first “transitional period” is approximately 12 (twelve) months after the beginning of the “limited period”, and the beginning of each subsequent “transitional period” is approximately 12 (twelve) months after the beginning of the preceding “transitional period”. The “transitional periods” within a “limited period” are conducted in the investors’ interest for the purpose of ensuring liquidity of their investments at better conditions in certain cycles within the “limited period”. In particular, during the “transitional period” the expenses on the investors’ account upon sale and redemption of units shall be lower in comparison to those during the rest of the “limited period”. If an investor is willing to buy or sell back units, he shall be able to do so during a “transitional period” at conditions better than those during the rest of the “limited period”. The investors should consider that those who bought units during the “transitional periods” may not rely on protection of the 99 (ninety nine) per cent of the value of their investment at the end of the “limited period”. The Management Company shall inform the unit holders and the other investors about the exact date, on which each “open”/ “limited” and “transitional” period will begin at least 30 days before the start of the respective period through announcements:
  • at all “counters”, where the Fund units sale orders and redemption orders are accepted;
  • on the web-site of the Management Company.
Detailed information about the instruments that can be included in the Fund's portfolio and its investment strategy can be found in Art. 7 - art. 16of the Fund 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 Investor 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.