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 may also invest a portion of its assets in derivative financial instruments. Debt securities may be issued or guaranteed by all categories of issuers, including the Bulgarian State, another Member State or a third country, their central, regional or local authorities, and companies.
The Fund shall invest 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.
The strategy provides that, through these instruments, the Fund will participate in any increase in the value of the underlying asset on which the relevant derivative instruments are purchased, but at the same time will be protected against a decrease in the value of the underlying asset.
To achieve the investment objectives of DSK Stability 6, the Fund's activities are cyclical in nature. Each investment cycle has a duration of approximately three 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 referred to as the "open period" and lasts approximately three (3) months.
The second main period is called the limited period and lasts approximately three (3) 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 objective - the net asset value per unit (NAV) calculated as of the last business day of the "limited period" shall not be less than 102% of the NAV 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. Within each "limited period" there shall be two (2) '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 a "transitional period" the costs borne by investors in selling and redeeming Units will be lower 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 the protection of the investment growth - the net asset value per unit (NAV) calculated as of the last business day of the "limited period" shall not be less than 102% of the NAV calculated as of the last business day of the "open 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.
The Fund shall invest 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.
The strategy provides that, through these instruments, the Fund will participate in any increase in the value of the underlying asset on which the relevant derivative instruments are purchased, but at the same time will be protected against a decrease in the value of the underlying asset.
To achieve the investment objectives of DSK Stability 6, the Fund's activities are cyclical in nature. Each investment cycle has a duration of approximately three 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 referred to as the "open period" and lasts approximately three (3) months.
The second main period is called the limited period and lasts approximately three (3) 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 objective - the net asset value per unit (NAV) calculated as of the last business day of the "limited period" shall not be less than 102% of the NAV 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. Within each "limited period" there shall be two (2) '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 a "transitional period" the costs borne by investors in selling and redeeming Units will be lower 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 the protection of the investment growth - the net asset value per unit (NAV) calculated as of the last business day of the "limited period" shall not be less than 102% of the NAV calculated as of the last business day of the "open 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.