Rruga “Nikolla Tupe”, Nr. 1, Kati 3

Tiranë, Shqipëri

NIPT: K523110009R

+355 4 53 51 030

www.credinsinvest.com

July 2019 Monthly Report for the Credins Premium Fund

Fund’s Management Company: Credins Invest sh.a.

Fund’s launch date: 01 July 2016

Investment objective:

The investment objective is to maximize income, by preserving the principal and holding liquidity. The Fund’s

portfolio will mainly consist in Lek denominated bonds and Treasury bills, issued by the Government of the

Republic of Albania, as well as cash and cash equivalents deposited at commercial banks.

The Fund is addressed to investors in search of:

a higher rate of return compared to products offered by banks,

the liquidity lacking from these products.

Risk and return profile

The Fund’s return depends on interest rate changes of Albanian Governments’ bonds and T-bills. Historically,

these interest rates have shown low volatility.

Low risk High risk

Lower typical benefits Higher typical benefits

1 2 3 4 5 6 7

The Fund has a level 2 risk profile which denotes low risk.

Key Fund indicators, 31 July 2019

Net Asset Value 2.865.630.650,67

Unit Price 1.269,8373

Modified Duration 2.12 vjet

Return on investment (31.07.2018-31.07.2019)* 7.57%

* The return on investment was calculated net of management fee.

Rruga “Nikolla Tupe”, Nr. 1, Kati 3

Tiranë, Shqipëri

NIPT: K523110009R

+355 4 53 51 030

www.credinsinvest.com

Risk characteristics of Fund’s assets Bank deposits

A bank deposit, as an asset class, includes bank’s credit risk and repricing risk at maturity. Repricing risk

implies a decrease in interest rate when the deposit is rolled-over with the same maturity.

Government Bonds and Treasury Bills

These assets are issued by the Government, agencies or government sponsored enterprises (GSE). However,

governments do not fully guarantee the interest payment or the principal. Government bonds and T-bills are

subject to interest rate risk and have different credit ratings. T-bills have higher interest rate risk than bonds

with the same maturity.

*For additional information regarding the risks of the Fund, please refer to the respective section of

the fund’s Prospectus.

Costs and Payments

Payments are used to pay for Fund’s management costs, including the costs of marketing and unit allocation.

Payments made lead to a potential decrease of investment growth.

Fees and commissions that will be charged to the Fund are listed as below:

Entry Fee: 0%

Exit Fee: 0%

Management Fee: 1% of NAV (per annum)

Commissions for unit redemptions: 0 Lek

Other costs:

Transaction costs for the investment of assets in the fund: according to counterparty working conditions

Annual audit fee for the fund: according to audit company working conditions

Depositary fee: 0.153% of NAV (per annum)

Albanian Financial Supervisory Authority fee: 0.05% of NAV (per annum)

Rruga “Nikolla Tupe”, Nr. 1, Kati 3

Tiranë, Shqipëri

NIPT: K523110009R

+355 4 53 51 030

www.credinsinvest.com

Asset Allocations as percentage of Net Asset Value (NAV), July 31, 2019

Asset Allocation ALL %NAV

Bonds 1,681,950,778.00 59%

Treasury Bills 258,934,899.40 9%

Cash and cash equivalents 940,032,741.74 32 %

Asset Allocation according to their type, as of 31 July 2019

Auctions of government securities and interest rates

The Government of the Republic of Albania issues securities in relatively frequent and regular periods.

According to the reports published by the Ministry of Finances, the auctions for 3-month and 6-month T-bills

are held once a month, whereas the auctions for the 12-month T-bills are held every two weeks. Except for the

auctions of the 2-year bonds which are held monthly, auctions for all other bonds (3,5,7,10-year) are held

approximately quarterly.

59%

9%

32%

%NAV

Bonds

Bills

Cash & Cash Equivalents

Rruga “Nikolla Tupe”, Nr. 1, Kati 3

Tiranë, Shqipëri

NIPT: K523110009R

+355 4 53 51 030

www.credinsinvest.com

3-month Tbills

6-month Tbills

12-month Tbills

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00% Short-term rates

2-year bonds

3-year bonds5-year bonds

7-year bonds

10-year bonds

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%Long-term rates

Performance of 6- and 12-month Treasury Bills’ yields

There were two auctions

organized for the 12-month

T-Bill during July. The

interest rate for the 12-month

T-Bill increased from

1.678% to 1.741% on the

July 02th auction and the July

23rd auction’s result

increased to 1.871%.

There was no auction for the

3-month and 6-month T-Bill

during the month of July.

Performance of Bonds’ yields

During July the 2-year bond

auction (new issue)

increased to 2.22% from

1.99%. The re-opening

auction for the 5-year

benchmark bond increased

from 3.016% to 3.432%.

The auction for the 10-year

bond increased from 5.19%

to 5.53%.

During the month of July

there were no auctions

organized for the 3-year and

the 7-year bond.

Rruga “Nikolla Tupe”, Nr. 1, Kati 3

Tiranë, Shqipëri

NIPT: K523110009R

+355 4 53 51 030

www.credinsinvest.com

Annual historical returns, as of 31 July 2019

The annual return during the last 12 months (31 July 2018-31 July 2019) was 7.57%, from 8.50% that was for

the period 30 June 2018-30 June 2019. This fall in the rate of return is attributed to a general increase in the

level of interest rates pertaining to Albanian Government securities that has continued during the month of July.

The Fund has to recognize all securities at fair value which implies calculating their values daily. The price of

every bond or bill has an inverse relationship with interst rates. When interest rates go up, the price of bonds

issued in the past falls and also falls their period rate of return. The opposite happens when there is a fall in

interest rates. During the begining of the year, interest rates fell and the rate of return of the fund increased

substantially. But these are temporary fluctuations in the rate of return that accompanies investors in

government bonds. If a client stays invested till maturity of the bond, he will ge the fixed coupons and the re-

invested amount. For this reason we advise the clients to stay for a period longer than one year. Regardless of

recent downfalls, the rate of return since the beginning of the year is 4.16%.

7.40%

7.18%

7.57%

6.90%

7.00%

7.10%

7.20%

7.30%

7.40%

7.50%

7.60%

2017 2018 last 12-months

Net historical returns

Past performance is not a guide, a promise or a guarantee of future performance and it should not be the only factor

taken under consideration during the selection of a fund. All financial investments involve risk. Hence, the value of

your investment and the returns from it will change. Levels and tax basis change from time to time. For additional

information, you are kindly invited to read the Fund’s Prospectus, as well as visit our company’s website:

http://www.credinsinvest.com/ .