KEY INFORMATION FOR INVESTORS

Mutual Fund ‘ACTIVA BALANCED FUND’, ISIN CODE: BG9000019075, UIC: 175373053

The collective investment scheme is managed by the management company ‘Activa Asset Management’ АD, UIC 175263888

 

This document presents the Fund’s key information for investors. The document does not have an advertising purpose. The information is required by virtue of law and is aimed at facilitating the understanding of the nature and risks associated with investing in this Fund. We recommend that you read this document in order to be able to take an informed decision about any possible investment.

 

OBJECTIVES AND INVESTMENT POLICY

1. The assets of the Fund are invested in:

  • shares, tradable rights and other securities admitted to trading or traded on a regulated market in the Republic of Bulgaria, or another Member State of the EU, or a third country, which are included in a list approved by the Financial Supervision Commission (FSC) at the proposal of the Deputy Chairperson;
  • securities and instruments on the money market issued by the Republic of Bulgaria or another Member State, securities guaranteed by the Republic of Bulgaria or another Member State, as well as securities issued by or guaranteed by third countries, which are included in a list approved by FSC at the proposal of the Deputy Chairperson;
  • mortgage bonds and other debt securities issued by Bulgarian or foreign banks, admitted to trading or traded on a regulated market in the Republic of Bulgaria, or another Member State or a third country, which are included in a list approved by FSC at the proposal of the Deputy Chairperson;
  • corporate bonds, other debt securities and instruments on the money market that are admitted to trading or traded on a regulated market;
  • securities and instruments on the money market which are issued by or guaranteed by regional or local authorities in the Republic of Bulgaria, or a Member State or a third country, admitted to trading or traded on a regulated market;
  • debt securities and instruments on the money market, admitted to trading or traded on a regulated market in the Republic of Bulgaria, or another Member State or a third country, which are included in a list approved by FSC at the proposal of the Deputy Chairperson;
  • stocks and shares of other collective investment schemes which are authorized to carry out activities in accordance with Directive 2009/65/ЕC of the European Parliament and of the Council and have their registered seat in Bulgaria or another Member State or a third country;
  • bank deposits that either are payable on demand or can be drawn at any time, and their maturity date lies not more than 12 months ahead;
  • contracts of purchase or sale of financial instruments with an arrangement for repurchase (repo transactions).

2. The investors are entitled to buy shares or to present shares for repurchase at the central office of the management company at the following address: Sofia 1592, 43 Christopher Columbus Blvd., from 09.00 am until 4.00 pm on working days.

 

3. The Fund does not pursue any specific objective with regard to an industrial, a geographic or another market sector or class of assets.

 

4. The mutual fund provides an opportunity of choosing with regard to certain investments that will be made, this choice not being based on a comparative indicator.

 

5. The revenues from dividends are reinvested.

 

6. The rules of the Fund make it possible to apply appropriate strategies and techniques for prevention against market risk, currency risk and other risks (‘hedging’): transactions involving options, futures, swaps and other derivatives. The transactions in derivatives are connected with various and higher risks in comparison with the transactions in traditional investments. It is not certain that such transactions and techniques will be successful if implemented.

 

RISK ASSESSMENT INDICATOR

 

Depending on the portion of investments in the scheme, the risk indicator identifies the type of collective investment schemes (CIS) as share ones (associated with risk), debt ones (low risk) and money market instruments (risk-free) and reflects the market risk associated with a decrease in the prices of the respective group of assets.
Those data concerning previous periods which are used for calculating the synthetic indicator might not be a reliable basis when determining the future profile of risk.
It is possible for the category of risk and rate of return to undergo a change, and the categorization of the fund might change over time.
The lowest category is not a risk-free investment.
The mutual fund is a balanced collective investment scheme, the investments in risk securities (shares, rights) being up to 70 per cent of the assets. On the grounds of the value of the ‘standard deviation’ parameter, determined in accordance with the instructions of the CESR, the Fund is identified as one belonging to the third category under the 7-degree scale of the indicator.

 

Here are some other risk factors, which are not covered by the indicator, but the investors in the Fund’s shares are subject thereto:

  • Interest risk – the risk that some changes in market interest rates might unfavourably affect the yield from the assets of the Fund;
  • Credit risk – the risk that the issuer of debt securities and money market instruments or, respectively, the person furnishing the security might be unable to perform his obligations and, particularly, might be unable to pay in due time the principal and/or the interest due;
  • Liquidity risk – the risk that, in certain circumstances, it might be difficult or impossible for the management company to sell the Fund’s securities or instruments on the money market at an advantageous price;
  • Operational risk – the possibility of occurrence of losses related to errors or imperfections in the organizational system, or unfavourable external events of non-financial nature.
  • Risks associated with using derivatives;
  • Other risks, such as political risk, managerial risk.

KEY INFORMATION FOR INVESTORS