Funds

Funds Managed by Ayalon Mutual Funds Ltd. with External Investment Management by Fortune Financial Assets Ltd.

1. An exclamation mark (!) in the name of the fund indicates that, according to its investment policy, the fund may be exposed to credit risk arising from exposure to bonds that are not rated as investment grade (as defined below), or from derivative activities with or through corporations belonging to the second credit risk group, or from cash deposits and term deposits held with such corporations, or from the value of foreign securities lent through an Israeli stock exchange member that does not meet the conditions of the first credit risk group (hereinafter: “exposure to banks and brokers”), in addition to exposure to bonds of companies with no connection to Israel – unless they are rated AAil or higher, or an equivalent rating – in the following circumstances or exposure levels:

The total exposure to non-investment-grade bonds and exposure to banks and brokers, in addition to exposure to bonds of companies with no connection to Israel (unless rated AAil or higher, or an equivalent rating), may exceed the fund’s maximum equity exposure as specified in the fund’s exposure profile;

Exposure to a particular bank or broker may exceed 10% of the fund’s net asset value, and total exposure to banks and brokers may exceed 20% of the fund’s net asset value (regardless of the fund’s equity exposure profile).

For this matter:

– “First or Second Credit Risk Group” – As defined in the appendix to the directive for fund managers and trustees regarding custody and credit risks.

– “Bonds of Companies with No Connection to Israel” – In accordance with the effective dates set out in the Israel Securities Authority directive to fund managers regarding disclosure in the fund name about potential exposure to non-investment-grade bonds, bonds of companies with no connection to Israel, and banking corporations where the fund’s cash and deposits are held (New Version – 2021).

– “Company with No Connection to Israel” – A company that meets all the following: (1) its bonds are listed for trading in Israel; (2) it is incorporated outside of Israel; (3) its shares have not been offered to the public in Israel; (4) its business operations are conducted outside of Israel. For this purpose, a company will be considered as conducting business operations in Israel if its CEO or its active chairman (a chairman of the board employed in the position at more than 50% capacity) is an Israeli resident and most of its board members are Israeli residents.

– A rating of AAil or an equivalent rating as mentioned above – does not include a rating of (AAil-) or an equivalent rating.

“Non-Investment-Grade Bond” – Corporate bonds and/or government bonds issued by a country other than Israel that are either unrated or rated below (BBB-) or an equivalent rating.

** Until 22.06.25, the fund was named Fortune (0B) Investment Grade Portfolio.

*** According to the assessment of an external investment manager.

Exposure Profiles:

0 – No exposure to stocks 1 – Up to 10% exposure to stocks 2 – Up to 30% exposure to stocks 4 – Up to 120% exposure to stocks
6 – Over 200% exposure to stocks in absolute value.
B – Up to 30% exposure to foreign exchange   D – Up to 120% exposure to foreign exchange   F – Over 200% exposure to foreign exchange in absolute value.

Disclaimer:

This information does not constitute a substitute for investment advice from a licensed investment advisor under law, who considers each person’s individual needs and circumstances.

The above does not constitute an offer to purchase fund units. Fund units may only be purchased based on the funds’ prospectuses in effect at the time of purchase and their immediate reports. Past performance of the fund does not guarantee similar future returns.