Issue Price: 80,85 EUR | Redemption Price: 80,45 EUR – Valuation Date: 26.03.2020

Fund Description

RIV Zusatzversorgung is an international equity fund that distributes profits and is domiciled in Germany.

RIV Zusatzversorgung pursues three investment objectives:

As the primary objective, the RIV Zusatzversorgung aims to provide investors with additional income through yearly distributions which are independent of the investment results of the stock markets in the respective years. In general the distribution amounts to 2,50 EUR per share plus an accumulating inflation adjustment. The first fiscal year began on 01.10.2018 and ends on 31.03.2019. The first distribution for this short fiscal year will be calculated pro rata and amounts to 1,25 EUR per share. The first full distribution in the amount of 2,50 EUR per share plus the inflation adjustment will be made for the fiscal year ending on 31.03.2020.

As the secondary objective, this distribution should retain its purchasing power through an accumulating inflation adjustment. This is implemented by yearly adjusting the distribution to the percentage change in the German consumer price index (VPI) of the previous calendar year as published by the German Federal Statistical Office.

As third, subordinated objective, the fund share price should follow the German consumer price index in the long-term (>10 year period) despite of the yearly distributions, such that the fund assets retain the purchasing power of the invested capital.

This is accomplished by an active investment policy with emphasis on equities. The equity ratio can be between 51% and 100% of fund assets. The fund only invests in listed securities with sufficient large trading volume.

The mitigation of investment risks within the fund is implemented by broad and international diversification across issuers, industries, countries and currencies. This is the only way investment risks can be mitigated without sacrificing performance. All attempts of market timing or hedging transactions are abstained from. Scientific research proves that the costs of this are higher than the benefits in the long-term.

Speculative investments with risks that are difficult to calculate, as e.g. certificates or high-yielding junk bonds with a high risk of default are not considered suitable investments. Derivatives are not allowed as investments.
Securities lending transactions are excluded. These constitute a change from real assets to a claim, can be used to short sell securities against the fund investors’ interests and in addition lead to additional counterparty risk.

The fund is suited for investors, which seek recurring long-term purchasing power stable distributions. The investors are therefore willing to trade the long-term higher inflation risk of bonds against the higher short-term risk of volatility in equity investments with purchasing power stable distributions.

To deter short-term investments, a redemption fee of 0.5% is charged which in its entirety is credited to the fund, to compensate for costs that are incurred from in- and outflows of assets.

The RIV Zusatzversorgung is managed by three experienced fund managers. In addition, the principles of the investment policy are defined in an internal operational framework and can only be changed by a joint decision of the management board. These measures prevent unilateral decision-making, too much dependence on one person and that a departure of one manager changes the hitherto successful investment policy significantly.

The investment fund costs are very important for the long-term investment results of an investment fund.

To hold current costs as low as possible, no recurring commissions are paid from the investment funds’ assets to banks or intermediaries. This is an advantage for advice seeking investors, as our fund will only be recommended by conviction and not commission interests.

No performance fee is charged.

The investment fund costs reduce taxable current fund income. Furthermore, fund distributions and fund capital gains are 30% tax exempt.

We place great importance on a maximum of transparency towards investors in our investment funds. Every known investor is therefore informed about the investment results of the investment fund in a monthly reporting consisting of a detailed investment fund composition, implemented significant transactions within the funds and an overview of macroeconomic developments.