Savings

• Presentation: Fixed Income Fund
• RBAM Fixed Income Fund Offering Memorandum
• Supplement of RBAM Fixed Income Fund Offering Memorandum
• Order on Purchase of Fund Shares

Fixed Income Fund

The fund is designed for risk-averse investors, who seek for return exceeding that of the bank deposits and inflation. One of the fund’s key advantages is an opportunity to purchase its stakes using leverage and receive short-term loans against these stakes.

Fund management and control
Administrator: Valetta Fund Services
Manager: RB Asset Management
Custodian and banker: AS “Rietumu Banka”
Auditor: KPMG

Investment Goal
To ensure stable growth of the fund’s stake within 5-7% per annum (less commissions).

Investment Policy
The fund invests in government, municipal and corporate bonds featuring high reliability and liquidity. The fund’s income consists of the coupon yield and price increase of the fixed income instruments.

Selection Criteria
Rietumu’s system of indicators ensures optimal balance among profitability, reliability and liquidity.

Credit rating
80% of the fund’s instruments have to be rated from B- to AAA on average by the largest international ranking agencies (S&P, Moody’s and Fitch).

Reliability of the issuers
Quality of the government issuers is appraised using a number of political and economic factors. Financial standing of the corporate issuers has to meet the following criteria strictly:

• Total Debt/EBITDA (debt coverage ratio), maximum 2, i.e. current profitability rates of the company allow repaying the debt in less than 2 years
• Total Debt/Total Capital, total debt of the company has to be less than 60% of the total capital
• Interest Coverage Ratio, to exceed 3.5
• Current Ratio, to exceed 1.5

Liquidity

• 80% of the fund’s assets are issued in the amount exceeding USD 500 million
• 20% of the fund’s assets are issued in the amount exceeding USD 100 million

Diversification

• Securities of an industry do not exceed 25%
• Government bonds of a country do not exceed 25%
• Securities of an issuer do not exceed 5%

Terms and Conditions
Minimum investment amount: USD 75 000
Entrance fee: 0.3% of the investment amount
Management fee: 0.7% of the net asset value
Performance fee: N/A
Stake value calculation: weekly quotation allows for evaluation and immediate sale of the stake
Lending: lending option of up to 70% of the stake at 3% per annum