Fund Type Description:At least 51% of the fund’s portfolio must at all times consist of public and/or private sector debt instruments.
Strategy:We manage the bonds/bills fund by investing in short-/medium-term bills and bonds. We shape the maturity terms in line with our expectations based of market dynamics while seeking also to derive a return from short-term fluctuations in the interest rates. The average maturity term is 180 days. Our aim is to generate a return higher than the average return from bonds and bills in the short-/medium-term. The fund’s ability to invest, depending on market dynamics, also in longer-term bills and bonds provides additional returns.
Investor Profile:Investors who wish to invest their savings in medium-term treasury bills and government bonds while deriving a return also from the fluctuations in interest rates..
Minimum Transaction Amount: Multiples of 1 share.
Benchmark: 60% KYD Bill Index – 182-day + 20% KYD Bill Index – 365-day + 20% KYD Gross Repo Index.
Terms of Transaction: Both buying and selling orders received between 09:30 – 13:00 hours are effected on T+1 at the T+1 price. Both buying and selling orders received after 13:00 are effected on T+2 over the T+2 price.
Primary Benefit: Provides potentially higher return over the bills of comparable term while guarding against extreme fluctuations in the interest rates thanks to a diversified portfolio and medium-term dominant term structure.
Reminder: Its potential for high returns is lower than that of our Long-Term T-Bills & Bonds Mutual Fund owing to investment in medium-term bills in a climate of downward interest rates.
