Marketprog Multi Asset Vol. 10

About the fund

Marketprog Multi Asset Vol. 10 is a very actively managed long-short absolute return fund. The basis portfolio consists of short maturity government bonds, while the positive return above the risk-free return is generated by short-term trading activity in major currency pairs and equity indices.

The investment manager pays particular attention to high-level and effective risk management in order to keep volatility at an acceptable level. In tailoring the composition of the Fund, the investment manager determines the weight of different asset groups dynamically, depending on the market situation and strategy pursued.

In its investments, the investment manager primarily uses its technical models it has developed with regards to shaping its short- and long-term positions.

The potential investment area is global and the widest possible: domestic and international shares and bonds; bank deposits and other market instruments; and derivative contracts. Furthermore, the Fund also invests in the assets of the global foreign exchange market for speculative and hedging purposes. The Fund may take leveraged, long (buying) and unfunded short (sale) positions, taking the limits and multipliers laid down in legislation into account, but its total netted risk exposures may not be more than eight times the net asset value taken into account at a value calculated without the correction under Governmental Decree 78/2014. (III. 14.). The hurdle rate is the performance of ZMAX Index.

Risk-return profile of the fund

The risk/reward profile relates to the past and does not constitute a reliable indicator of the future risk/reward profile. Classification to category 1 does not mean that it is a risk-free investment. Risk category may shift over time. The Fund is classified as risk category 5 based on its past exchange rate fluctuations, or a similar portfolio or an applicable determination of risk. The high risk category is due to the fact that the Fund largely invests its assets in bonds, shares or futures contracts, and these are characterised by a significant exchange rate fluctuation. The risk/reward profile indicated is not guaranteed to remain unchanged and the risk category may shift over time. Even the lowest risk category does not mean that there are no risks associated with the investment. When classifying an investment unit to a risk class, the calculation model may not take all risks into account.

The following risks are the ones that were not considered during the risk classification, but which are of relevance to the Fund:

Risk arising from the use of derivative contracts: The Fund may use derivative contracts not only for hedging purposes, but as an active investment vehicle. Thereby the risk of fluctuations in the value of Fund increases. Derivative contracts present a much higher risk by their nature compared to investment schemes without leverage. Though these risks may be reduced with investment techniques, they cannot be eliminated entirely.

Credit risk: The Fund invests a part of its assets in debt securities and/or money market instruments. There is a risk that issuers become insolvent (or their solvency falls), and these bonds and/or market instruments lose their value partly or entirely.

Liquidity risk: There is a risk that a position or security cannot be sold in time at a suitable price. This may lead to the suspension of the redemption of investment units.

Risk of settlement failures: The Fund enters into contract with different contracting parties. There is a risk that these contracting parties do not satisfy the claims of the Fund, for example as a result of insolvency.

Operational risk, risk in respect of safekeeping: There is a risk of losses, which are due to internal procedures/malfunctioning of systems or external events (for example natural disasters). Safekeeping carries the risk of loss of assets of the Fund, which may be caused by the insolvency of a depositary or a sub-depositary, the breach of their duty of care, or misuse.

Foreign‑exchange risk: The Fund may also invest in instruments issued or settled in other currencies, in addition to HUF-denominated assets, therefore it is also exposed to currency risk, and, to reduce this risk, the Fund may enter into derivative contracts for hedging purposes. But these contracts cannot completely eliminate the total exchange-rate risk.

Details about risks can be found in section ‘IV. Risks’ of Rules on Management.