The fund offers investors, who consider a long-term investment, the greater benefit of long-term government bonds and of the movements in the market interest rates.
Fund Type Description:At least 51% of the fund portfolio must at all times consist of public and/or private sector debt instruments.
Strategy: We manage our fund by investing mainly in long-term government bonds. We maintain an average maturity of 365 days on the T-bills and bonds maintained in our portfolio, taking account of the market dynamics and fluctuations in the interest rates. We aim to derive high interest earning by accepting a relatively lower risk than that is involved when directly investing in government bonds thanks to our portfolio management team who constantly monitor the markets and position accordingly. The bills and bonds in which the fund invests are managed after proper risk/return analyses with an average term of 365 days with emphasis on the maturity terms that offer value on a medium-term outlook.
Investor Profile:Investors who seek to invest in long-term government bonds to derive a relatively higher interest income in a climate of downward interest rates.
Minimum Transaction Amount: Multiples of 1 share.
Benchmark: 70% KYD Bill Index – 365-day + 20% KYD Bill Index – 547-day + 10% KYD Gross Repo Index.
Terms of Transaction:Both buying and selling orders received between 09:00-13:00 hours are effected on T+1 over the T+1 price. Both buying and selling orders received after 13:00 hours are effected on T+2 over the T+2 price.
Primary Benefit: A diversified portfolio provides potentially comparable returns by accepting a lower risk than that is involved when investing directly in government bonds in a climate of downward interest rates.
Reminder: In a climate of rising interest rates, the protection afforded to the investor is inferior to that which is provided by our short-term T-Bills/Bonds Mutual Fund.
