European Bond Fund Target 2027

The investment objective of European Bond Fund Target 2027 is to offer shareholders a return which will mainly come from income from bond coupons by assuming the lowest possible relative investment risk.

For the realization of its investment purpose, it invests mainly (at least 65% of its net assets) in fixed income securities in Euro regardless of credit rating, such as corporate and government bonds, issued by states, organizations, credit institutions and companies with their registered office in European countries, including Greece. Secondly, it may invest in money market instruments.

The maturity of the fixed income securities in which the fund invests will reflect as far as possible the maturity horizon of THE FUND. i.e., 30.11.2027, the date on which THE FUND will be fully liquidated.

The investment management of the fund is conducted based on the target maturity date 30.11.2027 of its portfolio. The objective of the investment strategy is to build a bond portfolio with the best possible balance between the yield achieved, the risk of potential default and the possible capital loss due to market fluctuations during the recommended investment period. The fund intends to hold the bonds in which it has invested until their maturity date, applying a buy and hold strategy, to secure the capital through their repayment at maturity. The fund will replace the bond values after their maturity with money market instruments or suitable fixed income securities with a remaining maturity horizon corresponding to the maturity date of the fund. Consequently, the maturity and sensitivity of the bond portfolio is expected to decrease over the years until 30.11.2027.

The fund can protect (offset) or improve (efficiently manage) the returns of its assets by using derivative financial instruments.

The fund presents a medium investment risk and is primarily addressed to investors who aim to maintain their participation in the fund until 30.11.2027 and seek to achieve a return from income and capital gains. Due to the nature of the markets it invests in, the net asset value of the fund may, in the time horizon until its expiration, fluctuate.

Important notice: European Bond Fund Target 2027 arose on 23/11/2022 from the amendment of the Regulation of “INCOME GREEK BOND FUND” (Amendment decision of the HCMC 431/21.11.2022). For a detailed public information disclosure please see here. (Document in Greek language).

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