Raiffeisen EURO BOND
Do you want a higher yield? Do you want to save in the Euro currency? Then Raiffeisen EURO BOND, a fund designed for medium-term investments, is the right choice for you.
Raiffeisen EURO BOND is intended for customers who prefer saving in the Euro currency during a medium period (from 1 to 3 years), who want to have a higher yield compared to the Fund Raiffeisen CASH and are inclined to the investment goal of the Fund Raiffeisen EURO BOND. Besides potential growth of investments in the Fund, the customers have to be ready to cope with moderate fluctuations of the value due to the changes of interest rates and related possible losses.
|Type of fund:||Bond fund|
|Investment goal:||Earning a higher yield than the interest earned on a medium-term bank deposit denominated in EUR|
|Whom the fund is intended for:||To investors looking for a moderate yield from interest and price increase in a medium term, investing in debt securities and simultaneously being ready to assume moderate risk.|
|Minimum initial investment:||500,00 KM|
|Minimum amount of each next investment:||100,00 KM|
|Minimum payments under an investment scheme*:||25,00 KM|
* An applicant who opts for an investment scheme has to make multiple periodical payments in pre-defined amounts (standing order).
|Exit fee:||0.50% for the investments shorter than six months|
0.00% for the investments longer than six months
|Management fee:||Maximum 1.5 % annually of the Fund's total assets.|
Investment goal and target investment structure of the Fund
The investment goal of the Fund is earning a higher yield than the interest for medium-term bank deposit denominated in EUR. The fund strives to accomplish its investment goal by reaching stable mid-term growth of the units’ value by investing assets of the Fund primarily into debt securities and other financial instruments in accordance with the regulatory and other restrictions listed in the Prospectus. Given the investment goal, this is a bond fund.
Permitted and restricted investments
The Fund's assets are invested in the following financial instruments:
Bonds, money market instruments, investment funds which predominantly invest into fixed-income instruments in Bosnia and Herzegovina (FBiH and RS), other CEFTA member states, EU member states and other OECD member states up to 100% of the Fund's net assets. The Fund may invest more than 35% of the Fund's net assets in financial instruments issued or backed by Bosnia and Herzegovina, the Federation of Bosnia and Herzegovina, Republika Srpska or units of local and regional self-government in FBiH and RS, or by the Central Bank of Bosnia and Herzegovina, a member state, CEFTA member state or OECD member state (in line with legal terms and conditions);
Investment funds focused on fixed-yields financial instruments, in Bosnia and Herzegovina and other CEFTA member states, EU member states and OECD member states, up to 30% the Fund's net assets;
Deposits in financial institutions and money in the Fund's accounts, up to 50% of the Fund's net assets;
Repurchase agreements, up to 30% of the Fund’s net assets;
The Fund's currency exposure in KM and EUR is minimum 90% of the Fund's net value, of which the EUR exposure is min. 51% of the Fund's net value;
Exceptionally, in some periods, the share of cash and deposit funds can be higher than 50% due to the portfolio restructuring or amortisation of effects of possible drop of securities’ prices.
The Fund will not be exposed to the share market.