PKO Treasury and Municipal Bonds is actively managed and primarily invests participants’ funds in bonds issued by Local Government Units (LGUs), as well as short-term treasury bonds. LGU bonds offer higher interest rates than State Treasury bonds, and their valuation remains relatively stable due to low sensitivity to interest rate fluctuations. This creates an opportunity to achieve attractive returns while maintaining controlled valuation volatility.
Additionally, the subfund has entered into an agreement with PKO Bank Polski S.A., under which the bank guarantees the payment of amounts due to the subfund from its LGU bond holdings in the event of issuer default. Furthermore, the bank has committed to repurchasing part or all of the LGU bond portfolio upon the subfund’s request. If the counterparty fails to meet its obligations or if the agreement is terminated, the subfund may face liquidity risks due to the inability to liquidate certain holdings, which could ultimately result in the suspension of unit redemptions.
Investing involves risk. Please read KID and the Fund's Prospectus before making an investment. The historical performance presented is not a guarantee for similar investment results in the future. The full content of the legal note.