INVESTMENT STRATEGY of the Open-End Diversified Unit Investment Fund KINTO-TREASURY
The funds objective is to provide investors with returns which will be higher than inflation rate and average bank deposit rate in the mid-term perspective while minimizing risk through diversification of asset classes and mandatory annual rebalancing of assets. According to the investment policy classification, the Fund can be classified as the balanced fund. The Fund suits mid-and long-term investors with expectations of relatively high yield at low risk.
Investment portfolio will exposed to diversified group of asset
classes based on the target proportions:
30% - state and municipal securities, as well as the most reliable corporate and bank bonds;
30% - precious metals, of which 60% - gold, 30% - silver, 10% - platinum (the ratio between the metals may be reviewed during scheduled annual rebalancing);
10% - bank deposits.
To reduce risks the Fund will perform scheduled and unscheduled asset rebalancing to bring the share of asset classes to their target level. Scheduled rebalancing will take place in the 1st quarter of each year. Unscheduled rebalancing will take place in case of 10 percentage points deviation from the target proportions of any asset class.
To achieve the investment objective, the Fund will adhere to the
passive-active strategy. Passive means that the Fund will be limited in
investments by the target proportions of asset classes and legal requirements
for diversified funds. Investments will be made primarily for the long-term
period to realize growth potential of its market value. The active strategy
means that, within a certain percentage, the decision to invest may depend on
current market conditions, as well as re-investment opportunities that
potentially can outperform the market in the short- and medium- term
Investing in debt securities will be based on profitability and liquidity of
a particular instrument, financial condition and credit quality of an issuer.
When choosing a bond, advantage will be given to medium-term securities with
maturity (redemption) of 1-3 years.
The Fund has unlimited lifetime. Current funds profits (from
active operations, dividends and interest) will not be paid to the participants
of the Fund, but fully reinvested.
The Fund's high liquidity is ensured by the obligation to sell and redeem investment certificates without any barriers based on the net asset value (including 1-2% of agent fee).
Disclaimer: The Company draws investors' attention to the fact that the value of the Fund's securities may go up or down depending on changes in market value of securities and other assets in the Fund's portfolio. Participants fully bear the risks of losses related to changes in assets value of the Fund. Profits are not guaranteed either by the state or by the Company.
© Kinto, Investment & Securities in Ukraine
25-B Sagaydachnogo str, 3rd floor,
Kyiv, Ukraine 04070
Tel.: +380 (44) 462-5377, 462-5140