ARGO SP invests in a portfolio of underline fixed-income instruments, conservative investment funds of various strategies, and conservative derivative products.
products for the portfolio
A high proportion of capital
invested in the market-neutral strategies
among the asset classes
An investor who wants to build a diversified portfolio of conservative instruments in order to receive long-term returns above the average among the range of conservative products, with a low risk of significant losses.
With a long-term target return of 4–5%, the probability of loss over a one-year horizon is below 10%, and a 10% loss has a theoretical probability of less than 0.1%.
ARGO SP – an investment fund aiming to compose a highly diversified portfolio of conservative investment instruments, mimicking a strategy of a professional family office.
Long-term target return: 4–5% annualised in USD terms, with low volatility.
Description The returns of the fund depend on the returns of capital markets and, first of all, debt markets; this is why falling debt markets can impact negatively the results of the fund.
Risk management method More than 60% of the fund assets are invested in the instruments and products that can be classified as arbitrage or market-neutral.
Description Interest rate risk is very similar to the market risk: when the refinancing rate increases, the interest rates rise, and the prices of financial instruments that depend on the interest rates fall.
Risk management method More than 60% of the fund assets are invested in instruments and products that can be classified as arbitrage and market-neutral.
Description As a result of insufficient diversification, a sharp fall in the value of a single asset can lead to a large effect on the fund's returns.
Risk management method The fund is well-diversified: as of 01.04.2022, the fund portfolio contains 23 instruments, the largest share – 12%, the average share of a single instrument is 4%.
Description A proportion of the fund's assets is invested in instruments with low liquidity.
Risk management method The fund keeps no less than 50% of its funds in the instruments with liquidity of fewer than 30 days.
Description Deterioration in the credit quality of an issuer can lead to a default on bonds and other obligations.
Risk management method When investing in bonds, the credit quality of the issuer is thoroughly checked and, subsequently, monitored. When the fund invests in investment products that depend on credit risk, we check the past results, examine the background and the quality of expertise of the management team that supervises the credit risk. The fund does not extend credit independently to individual projects.