Investor FIZ
Investor FIZ, a closed-end fund, has been in operation since September 2005. It was established without a set termination date and has been quoted on the Warsaw Stock Exchange since January 2007.
Net Asset Value |
Profit since Sep. 2 2005 |
||
| PLN | 413 197 729 |
121% |
|
| EURO* | 99 666 585 |
112% |
|
| USD* | 121 722 067 |
105% |
* average NBP exchange rate of 30 June 2010: 1 EURO = 4.1458 PLN; 1 USD = 3.3946 PLN
average NBP exchange rate of 2 September 2005: 1 EURO = 3.9747 PLN; 1 USD = 3.1609 PLN
The Investor FIZ fund offers an opportunity to invest in different classes of financial assets in many markets. These investments are chosen by the portfolio managers to optimally ensure positive yields irrespective of overall economic trends. This type of fund relieves individual investors of the burden and risk of constantly adjusting their own portfolio profile and constantly weighing their choices of the right moments to buy and sell.
| Polish Funds | Profit (PLN)* |
|---|---|
| Investor FIZ | 119,77% |
source: www.wp.pl
Performance: 2005-09-30 - 2010-06-30
* excluded upfront fee and taxes
Financial instruments
This fund invests in shares, bonds and derivatives linked to indexes, currencies, commodities, goods and energy. The specific composition of the portfolio varies, as the proportions of various types of instruments are adjusted in keeping with the current and anticipated market climate.
Shares represent a regulated segment of the portfolio, expanded during periods of rising share prices but downsized and/or replaced with defensive shares in anticipation of market downturns.
Derivatives (futures, options) offer a means to gain exposure to additional markets that are often not correlated with the stock market, such as metals, energy, or agricultural products. They enable profits to be earned on increasing/decreasing prices of their base instruments, and they are utilized both as hedging mechanisms and as supplementary investments in their own right. When markets are buoyant, they can lend further profitability to the portfolio by serving as a means of leverage (gaining exposure above 100% of asset value). During periods of downward corrections or overall market downturns, derivatives serve as a hedging mechanism for the portfolio, e.g. through short selling of stock market index contracts
.
Investment strategy
Investor FIZ applies different strategies, such as using long and short positions or combinations of instruments. This flexibility allows it to achieve profits even when indexes decrease, not just when they increase. Derivatives moreover enable the portfolio exposure to be extended to over 200% of the Net Asset Value (NAV). When markets are buoyant, the exposure is in fact greater but to a lesser extent because there is still a possibility that exposure will continue growing through the increase of the market value of the possessed instruments. Historically, the maximum level of exposure ever reached was 180% of the NAV
Geographic diversification
Investor FIZ invests in assets in the Polish market and abroad. Such a strategy gives access to a wide range of instruments of greater liquidity, enables more efficient relocation of assets and spreads out the investment risk.
Hedging against risk
The Fund invests in:
- different instruments in many markets, in order to limit risk through portfolio diversification
- currency risk hedging contracts, thus limiting the risk of changes in the value of the Polish zloty with respect to other currencies in which investments are made
- contracts hedging against the risk of changes in the share market, where possible, in order to nullify the impact of a possible drop in share values during an economic downturn
Portfolio managers
The portfolio managers of Investor FIZ are excellently qualified, as confirmed by many years of experience and outstanding fund management performance. The managers of the Investor FIZ fund are simultaneously co-owners of Investors TFI (the fund management company) and also have their own money invested in the Investor FIZ fund. The fees of the fund management company depend upon the fund's good performance.
