FITS

The objective of the FITS fund is to achieve above-average interest income, measured in EUR, through investing in higher-yielding fixed income instruments and income from portfolio comprised from short term IR futures which is constructed along the yield curve.

The investment strategy of the FITS system consists of two parts. One is based on the slope of the yield curve. It is founded on the observation that short term interest rates are lower than long term rates. The FITS system uses short term interest rate futures to construct a portfolio along the yield curve. The slope of the yield curve and the interest rate volatility are taken in to account when optimizing the portfolio.

Second one is based on the Bond portfolio focused on the higher yield segment of the bond market. The portfolio is territorially and industry diversified and consists of government, municipal and corporate bonds. It is allowed to invest a limited amount of money in bonds of issuers with S&P, Moody´s or Fitch credit rating lower than or equal to BB+ (Ba1), but it is prohibited to invest in bonds of issuers with rating lower than CCC (Caa). Market risk is measured and managed according to Macaulay duration with the approximate value of 3.5 year. The Fund´s denomination currency is EUR.

FITS can employ various techniques - currency, interest rate futures or other risk management or investment techniques to diversify risk or to enhance return.