Aletti Gestilelle Sgr (Banco Popolare Group) has launched a new flexible bond fund which invests mainly in government bonds issued by Italy, Spain, France and Belgium.
However, government bonds from Greece, Ireland and Portugal are excluded. The fund, distributed every six months, invests exclusively in financial instruments denominated in euro. It therefore does not expose to exchange rate risk. Furthermore, direct investment in shares is excluded. The type of investment envisages the construction of an initial portfolio made up of bonds with an average residual life of approximately five years, with a duration that decreases over time until it approaches zero at the end of the fifth year and, consequently, with a decreasing risk as the time horizon approaches. With the aim in this way of making an investment with limited and decreasing risk with a semi-annual coupon.
