EnCor Konzervativní, otevřený podílový fond

INVESTMENT PLAN

The Fund’s investment objective is to achieve stable long-term appreciation at low levels of volatility, thus outperforming inflation and bank deposit returns over the long term.

For this purpose, the Fund invests mainly in high-quality corporate bonds issued by issuers mainly from the Czech Republic, supplemented by issuers from the EU or other countries, money market instruments, reverse repo operations and other fixed-income instruments. To a lesser extent and depending on the expected development of the markets, the Fund may also invest in riskier asset classes such as equities or commodities. The Fund will use partial or full hedging of foreign exchange risk against the CZK and interest rate risk through financial derivatives to ensure stability or increase returns.

Interim earnings are reinvested and further appreciated. The fund does not actively copy any index or benchmark, but aims to outperform the inflation rate in the Czech Republic over the long term.

KEY INFORMATION

Fund type: Special collective investment fund, open-end mutual fund (OPF)
Security: Class A Share Certificate
ISIN: CZ0008477924
Date of foundation: 7 August 2023
Currency: CZK
Expected net return: 1-2 % above bank deposit yields
Expected risk: Low
Investment horizon: 3 years
Fund manager: EnCor Asset Management, investiční společnost, a.s.
Management fee: 1.25% p.a.
Performance fee: 10% of positive annual return (high-water mark principle)

WHY INVEST IN THE FUND?

HIGHER YIELD THAN IN THE BANK

The Fund invests in investment instruments, particularly high quality bonds and reverse repos, which have a higher yield than bank deposits.

When holding unit certificates for more than three years, the return is exempt from income tax for the individual investor, unlike, for example, interest on fixed-term deposits. Thus, the expected net return of the fund is 1-2% per annum above the return on bank deposits.

In addition, when interest rates fall, the fund has the opportunity to benefit from this situation, unlike bank deposits and money market funds.

WEEKLY LIQUIDITY

Valuation of the fund and unit value is carried out once a week. The current price is available to each investor on the client portal.

Redemption of a unit can be made at any time, settlement is at the price at the next weekly valuation and the money is paid out generally within 14 days of the valuation.

It is possible to sell units with a minimum value of CZK 1,000, as well as a minimum residual value of CZK 1,000.

EXPERIENCED TEAM

The EnCor team has successfully managed the EnCor Fixed Income Strategy bond fund for over five years.

In the time since 2018, the fund has had one of the highest returns among funds in the market with a similar bond or conservative strategy and has delivered positive returns to investors in every year.

The strategy is based on a thorough risk assessment of each investment in the fund at the level of bank credit portfolio management.

EnCor is now making this strategy and expertise available to retail investors in the form of the EnCor Conservative OPF.

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