Moscow, Russia, 23 November 2021.
Tinkoff Capital Management Company has launched Tinkoff Eurobonds EUR, a new exchange-traded mutual fund investing in sovereign and corporate Eurobonds denominated in euros.

The fund’s portfolio includes Eurobonds issued in over 20 countries. Most of these instruments are high-yield bonds, carrying higher credit risks but also offering higher potential returns.

Among other securities, the fund invests in perpetual Eurobonds issued by Raiffeisen Bank International AG, one Austria’s top banks, as well as medium-term bonds issued by the British manufacturer of Jaguar and Land Rover cars and by Rolls-Royce plc, a British producer of aviation, marine and power generation equipment.

The fund follows the Tinkoff Aggregate Eurobond High Yield Index EUR*, which tracks the aggregate yield of a portfolio made up of high-yield euro-denominated Eurobonds.

The fund is well diversified both by country and by sector. Producers of consumer goods make up almost 21% of its bond portfolio; the financial sector, another 21%; and the mining sector, 9.3%. In terms of geography, the share of UK companies is 21%, and companies in the United States, Austria, Mexico, Luxembourg and the Netherlands account for 7% each.

«The Tinkoff Eurobonds EUR fund gives investors an opportunity to diversify their currency risks. Tinkoff Investments analysts estimate the fund’s potential return at about 3% per annum, while the current average rates on EUR deposits stand at 0.1% or below.

«Most Eurobonds in the fund’s portfolio are high-yield securities, offering higher coupon rates. Tinkoff Capital Management Company reinvests coupon payments, further increasing the fund’s value.

«In addition, the Eurobond market is usually unavailable to unqualified investors, and the minimum investment is fairly high — EUR 100,000 on average — while the starting price of Tinkoff Eurobonds EUR units is just EUR 10. Therefore, exposure to the Eurobond market via the fund is a decent and cheaper alternative to purchasing Eurobonds independently.»

Funds can be purchased through the Tinkoff Investments mobile app in the «What to Buy» → «Funds» section. They can also be purchased on the Tinkoff Investments website or through the Tinkoff Investments web terminal.

The Tinkoff Eurobonds EUR fund is available at all Tinkoff Investments rates with no brokerage fees for buying or selling units on the Tinkoff Investments platform.

*The Tinkoff Aggregate Eurobond High Yield Index EUR is calculated by Tinkoff Bank JSC

ETF RFI Tinkoff Eurobonds EUR Index. Trust Management Rules No. 4618, registered by the Central Bank of Russia on 27 September 2021.