QUERCUS Capital Protection

Absolute return product. The objective of this subfund is to generate sustainable returns in absolute terms, while at the same time protecting the invested capital. At the end of every given calendar year the subfund's assets value per unit should be no lower than the value stated the year before. However, neither the subfund nor the Company, nor any other third party guarantee that this objective will be achieved.

The risk level of investing in the subfund is low.

The subfund pursues its investment policy by investing assets mainly in debt instruments, including those issued by:
•    the State Treasury or the central bank of the Republic of Poland,
•    corporations, including companies listed on the Warsaw Stock Exchange,
•    other EU or OECD states or their central banks.

Up to 20% of the subfund's assets may be invested in equities, including the shares of companies listed on the Warsaw Stock Exchange or on any other New Europe stock exchange. Assets may be invested in equities when there is a high probability that their prices will grow in absolute terms. Thus, Investors have an additional opportunity to participate in, and benefit from, the growth of equity prices, which is not offered by traditional money market funds.

This subfund may be used during times of correction in the equity market or as a safe component of a diversified investment portfolio. This subfund is an alternative to a bank deposit.

The subfund does not have a benchmark.