Fund Profile
The Exchange Traded Fund "EF Principal ETF" has a moderate to high risk profile, primarily investing in Bulgarian and foreign equities and units of UCITS, corporate bonds, and mortgage bonds traded on regulated markets. The main objectives of the Fund are to increase the value of the unit holders investments by achieving the maximum possible return while taking on moderate to high risk, and to ensure the liquidity of the unit holders investments.
Investment Structure
The investment strategy of EF Principal ETF envisages the realization mainly of capital gains from financial instruments and, to a lesser extent, income from dividends/income from equity securities, as well as current income from debt securities and other financial instruments.
To achieve the investment objectives of EF Principal ETF, the Management Company invests the Fund's raised funds primarily in liquid shares and bonds, tradable rights admitted to trading on Bulgarian or foreign regulated markets, mainly investing in shares and tradable rights traded in Bulgaria and other Member States. The Fund may also invest in third countries included in a list approved by the Deputy Chairman of the FSC. The share of equities is up to 90% of the fund's assets, and the units in UCITS up to 10% of the assets, the share of corporate bonds is up to 60% of the assets, and the share of mortgage bonds is up to 40% of the fund's assets.
Return and Risk Management
Growth is ensured through investment in high-yield assets, and risk management is carried out through diversification techniques and the mutual combination of assets. Among the main objectives of the Fund is also ensuring liquidity - both of its own investments and of investments in the Fund's units.
In the event of a prolonged market downturn, investments will be withdrawn from the equity group and directed towards low-risk assets. This will be done to protect investors' holdings.
Potential Investors in the Fund
The main group of investors targeted by the fund's activity are investors with above-average income for the country, with good investment knowledge and with medium to high risk tolerance. These are investors who would like to participate in the medium-risk asset market but would not accept the risk of making independent selections of which assets to invest in. Through the Fund, they are offered the opportunity to manage their investment risk while maintaining the possibility of achieving higher returns.
The investment product of EF - Principal ETF is intended for individuals (citizens, companies, institutions) who:
- are prepared to take on moderate to high investment risk in order to achieve a higher return;
- wish to have secure and fast liquidity without this disrupting the achieved return on investment;
- are prepared to invest funds in the long term;
- want to diversify the risk of their own portfolio;
- want their money to be managed by professionals in the financial markets.