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New offer for investors – bond fund with defined date at Citi Handlowy
Citi Handlowy introduces the first offer of a bond fund with fixed maturity date on the Polish market – Schroeder SSF Fixed Maturity Bond. This solution addresses the needs of an investor interested in investing capital for a few years.
The investment lasts 4 years and aims at delivering quarterly income, similar to purchasing a standard debt security. The structure based on several dozen different instruments of many issuers allows an investor to disperse and, thus, reduce credit risk, which can emerge in the case of a single company. The fund delivers income through investments in variable and fixed coupon debt instruments denominated in USD, from emerging and developed markets.
“This is the first such investment offer on the domestic market, and it can be implemented owing to the global experience of the Citi group. We are happy to provide this solution to clients in Poland,” says Andrzej Wilk, Head of the Retail Products, Brokerage Services, Segments and Branch Network Management Division at Citi Handlowy.
The fund's strategy assumes searching for relatively regular income from the paid coupons, with simultaneous focus on diversifying credit risk. It also provides a possibility to invest in a global portfolio without the need to conduct time-consuming selection of individual bonds and issuers – this task is conducted by a team of fund managers. The average credit rating of the product at initiation is BBB-. Debt securities originate from emerging and developed markets. The fund is also characterized by sensitivity to change in interest rate which decreases along with approaching maturity date.
The subscription term falls between February 5-24, 2020, the investment is planned to begin on February 26, 2020. The minimum amount of subscription is USD 1,000. 100% of the bonds comprising the fund portfolio are denominated in USD.
The solution is addressed to Citigold and Citigold Private Clients. The details of the offer are available during an individual meeting at a Citigold branch – as part of the investment advice the Relationship Manager can assess whether the solution meets the financial needs and goals of the client.
The material is trade publication within the meaning of MiFID II (Regulation 2017/565 in conjunction with 2014/596).
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