For achieving the Fund’s objectives, the Management Company follows conservative investment policy with active management of its investment portfolio of securities and funds.
The Fund’s financial resources are invested mainly in debt securities (long-term and medium-term government bonds, municipal bonds, corporate bonds, mortgage bonds, etc.), accepted for trade or traded on regulated Bulgarian markets and abroad and money-market instruments(short-term government bonds, bank deposits, etc.), and to less extend – in shares accepted for trade on regulated markets, shares of companies with special investment purpose, investment companies and UCI ‘s shares/units, with the purpose of diversification of the portfolio assets.
To provide liquidity and to achieve higher return, the Management Company concludes on the Fund’s account fixed deals for acquiring and trading of securities, as well as agreements with a redemption clause (repo deals).
To achieve the Fund’s main objectives and with risk-rate management the Management company can apply adequate investment methods for portfolio protection (hedging) from different types of risk, and thus conclude deals with rights, futures, forwards, options, swaps and other derivatives.