

Absolute Return
(Diversified Structured Products Fund)
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Objectives and strategy
Fund objectives
The fund’s target net return for investors over a three-year horizon is 6-7% per annum in US dollars.
Strategy
Investment strategy
The fund is positioned as an absolute return fund. It invests in a specific class of structured products whose payouts are linked to DM equity markets. In return for accepting the risk of the value of the underlying assets falling, the fund receives periodic coupon payments on the selected instruments. Investments are selected based on a multifactor statistical analysis of the historical prices of the underlying assets. The investment parameters and portfolio structure have been designed in such a way as to minimize the likelihood of losses and maximize the likelihood of receiving all expected coupon payments within the statistical analysis of the historical data.

This product is suitable for
Target investor
Investors who can tolerate relatively high volatility and seek returns over a 3-5 year horizon comparable to HY bond yields but who are not ready to take on the credit risks of these bonds.
ContactFund objectives
The fund’s target net return for investors over a three-year horizon is 6-7% per annum in US dollars.
About the fund
Fund facts
Investment terms
Advantages
Strategy advantages
Why it's profitable
Structure advantages
Results
Risks
Risk Management
Description Depending on market volatility and interest rates, the yield of the selected instruments can differ.
Risk management method The fund’s investments are evenly allocated both in terms of time and market entry levels, which smooths out fluctuations in interest rates and market volatility, and generates yields in line with average historical market parameters.
Description A sharp dip in the market risks the loss of capital as certain instruments might have to be redeemed at prices below par.
Risk management method Portfolio diversification helps to reduce the potential negative impact from the redemption of an individual instrument. By investing in a wide range of instruments that can be bought and sold in the secondary market, the fund can reinvest the proceeds from a «bad» redemption into other instruments that look set to restore the lost capital when the market recovers.
Description The fund invests in debt obligations issued by investment banks, which have the same credit risk as the issuer’s bonds.
Risk management method The fund invests only in the senior debt of investment banks with a credit rating of A or higher as rated by the Big Three rating agencies. As its assets grow, the fund is diversifying its portfolio, which limits the risk per issuer.