Government Eurobond Income Pension Mutual Fund

Fund Investment Strategy

The fund is suitable for investors wishing to obtain USD and Euro-indexed interest income. At least 80% of the fund’s portfolio is allocated to USD- and/or Euro-denominated and/or USD- and/or Euro-indexed debt securities issued abroad by the public sector. Maximum 20% of the fund’s portfolio is allocated to USD- and/or Euro-denominated and/or USD- and/or Euro-indexed debt securities issued abroad by the domestic private sector. The fund is intended to generate interest income in Eurobond markets. Its portfolio is managed according to changing market conditions and the maturities of fixed-income securities.

Money Market and Capital Market Instruments to Which tho Fund's Portfolio is Allocated

The fund’s management must comply with the following restrictions, save for the provisions of the relevant Regulations. Also, at least 80% of the fund’s portfolio must be allocated to USD- and/or Euro-denominated and/or USD- and/or Euro-indexed debt securities issued in international markets by Republic of Turkey.

ASSET TYPE	MINIMUM %	MAXIMUM %
Government Bonds and T-Bills (TRY)	0	20
Government Bonds and T-Bills (FX)	80	100
Domestic Private Sector Bonds (FX)	0	20
Domestic Private Sector Bonds (TRY)	0	20
Reverse Repurchase Agreements	0	10
Repurchase Agreements	0	10
Time Deposits (TRY/FX) /Participation Cert. (TRY/FX)	0	20
Takasbank Money Market Transactions	0	10
Mutual Fund Participation Shares	0	20
Futures and Options Contracts	0	20
Asset-backed Securities	0	20
Profit Sharing Certificates	0	20

Potential Risks

The fund’s portfolio consists predominantly of USD and Euro-denominated foreign borrowing instruments issued by the Turkish Treasury and/or the domestic private sector. The fund aims to generate revenue from such instruments. It is susceptible to inflation and interest rate risks. Accordingly, fluctuations in the exchange rates of USD and Euro and in Eurobond interest rates affect the fund’s revenues.

The fund plans to invest with a low percentage in private sector borrowing instruments, therefore is exposed to credit and liquidity risks. Fund management uses diversification for risk protection and risk minimization is aimed through risk diversification.

Comparison Criterion

45% IIMA Eurobond Indices USD-TRY + 45% IIMA Eurobond Indices EURO-TRY + 4% IIMA O/N Repo Indices Gross + 4,5% IIMA TRY-denominated 91-day Bill Indices + 0,5% IIMA Private Sector Bond Indices Fixed + 1% IIMA 1 Month Indicative Deposit Index (TRY)

Other Informations

Please click here to view the By-laws of AXA Government Bonds and Bills Income (FX) Pension Mutual Fund.
Please click here to view the Prospectus regarding AXA Government Bonds and Bills Income (FX) Pension Mutual Fund.
Please click here to view the AXA Government Bonds and Bills Foreign Income (FX) Fund Introductory Brochure.
Please click here to view the AXA Government Bonds and Bills Foreign Income (FX) Fund Announcement.
Please click here to view the Public Disclosure Form