About the Subfund

PKO Municipal Bonds Subfund invests the participants’ money primarily in bonds issued by Local Government Units. Their interest rate is higher than that of Treasury bonds, and the valuation is subject to minor fluctuations due to the relatively low sensitivity to interest rate volatility, which provides an opportunity to achieve attractive rates of return with limited volatility of valuation. The Subfund has also entered into an agreement with PKO Bank Polski S.A., under which the bank guaranteed coverage of the amounts due to the Subfund for the local government unit (LGU) bonds held if they are not paid by the Issuer, and undertook to repurchase all or part of the LGU bond portfolio at the Subfund’s request. If a counterparty is unable to meet its obligations towards the Subfund or if the aforementioned agreement is terminated, there is a liquidity risk arising from the inability of the Subfund to sell its investments, which may ultimately result in the suspension of redemption of participation units by the Subfund. PKO Municipal Bonds Subfund is actively managed.

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.