- 1. To subscribe to the shares of the investment fund, the investor must pass the document verification procedure (the so-called "Know Your Client" and "Anti-Money Laundering") with the administrator of the investment fund. Subsequently, the administrator keeps records of the investor's investments and is responsible for the relationships of the fund with the investor. In particular, it provides the investors with reports on the results of management throughout the entire period of investor's investment life in the fund.
- 2. Upon successful completion of the document verification procedures, the investor transfers funds to the current account of the investment fund with the bank for the purchase of the fund's shares.
- 3. Subscription to the shares of the investment fund is carried out by the investment fund on the basis of the subscription agreement.
- 4. The administrator provides his services to the investment fund on the basis of an administrative services agreement. Under this agreement, the administrator verifies the documents, maintains a register of investors-shareholders and maintains the accounting for the shares of the investment fund, keeps records of invested funds, calculates the net asset value of the fund’s shares and provides reports to the fund’s clients on the results of management.
- 5. The bank provides settlement services for the investment fund on the basis of an agreement on the provision of banking services; the broker provides brokerage services for the investment fund based on the brokerage services agreement. Investors funds shall be initially transferred to the fund’s bank account, and subsequently the administrator transfers them to the fund's broker account to perform investment operations. In case of redemptions from the fund, cash for such redemptions is transferred from the brokerage account of the fund to the bank account of the fund and subsequently transferred to the bank account of the investor.
- 1. The management company operates on the basis of the investment management agreement between the management company and the investment fund. It develops an investment strategy within the limits set out in the fund's founding documents, monitors its observance in parallel with the administrator, and makes and executes investment decisions on behalf of the fund.
- 2. The management company may engage investment advisors to manage the portfolio of the investment fund and transfer part of the responsibilities to such advisors on the basis of a trilateral investment advisory agreement between the investment fund, the management company and the investment advisor.
- 3. The broker, operating on the basis of brokerage service agreements, carries out the purchase and sale of assets on behalf of the fund; the broker also keeps track of and provides the safekeeping of assets.
- 1. The broker, operating on the basis of brokerage service agreements, carries out the purchase and sale of assets on behalf of the fund; the broker also keeps track of and provides the safekeeping of assets.
- 2. The auditor, acting on the basis of an agreement between the investment fund and the auditor, checks the accuracy of the calculation of the net asset value and financial results for the reporting period, compliance with the international accounting standards, as well as the compliance with the investment strategy. The audit report is available to all investors of the fund.
- The legal counsel advises on legal matters related to the activities of the fund, based on the service agreement between the investment fund and the legal counsel.
This type of investment requires time primarily for going through the administrator's checks. It is advisable to start the process no later than 1 month before the Subscription date. The speed of the process directly depends on how quickly the investor will be able to prepare the documents confirming the origin of the funds. The diagram shows the approximate time horizon of the process.
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T-28
The investor fills in the investor questionnaire.
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T-27
The investor receives the list of questions and documents required for the compliance process.
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T-25
The receipt of the documents from the investor required for the compliance process.
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T-15
The investor profile is created and transferred to the administrator.
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T-13
Internal compliance by the administrator: reviewing the case and the investor documentation; requesting additional documentation (if necessary); finalising the decision with regard to the investor (on average 10 calendar days from the time of the receipt of the documents).
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T-3
Transfer of documentation to the administrator (3 working days before the subscription date) and transfer of the funds to the investment fund.
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T0
The date of subscription: determining the price and issuing shares; entering the new investor into the register.
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T+10
The administrator issues the subscription confirmation and sends it to the investor.
In the case of investing through the investor's account with a broker or a bank based in a low-risk jurisdiction (a jurisdiction where financial institutions can certify investor's compliance with the administrator's requirements), the investor does need to go through the verification procedure with the administrator. The investment process in this case is significantly reduced and simplified. The Investor will however pay commissions to the bank/broker for buying and selling the shares and for holding the shares of the fund in the name of the investor. It is advisable to start the process no later than 1 week before the subscription day.
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T-5
The investor orders the bank/broker to purchase the shares of the investment fund (no later than 5 days before the subscription day).
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T-5 — T-0
Internal procedures of the bank/broker for the purchase of the shares of the fund.
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T-5 — T-0
Exchange of data with the administrator and receipt of the confirmation that the transaction is possible.
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T-0
Subscription date: determining the value of the shares and issuing the shares at the time of subscription.
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T+10
The administrator issues the subscription confirmation and transfers to the investor.


- 1. Selecting an investment strategy.
- 2. Defining the set of instruments.
- 3. Defining the style of investment (tactical or strategic).
- 1. Forming the set of financial instruments meeting the fund’s investment criteria: geography, industry, credit quality, liquidity, entry requirements, transparency, and the reliability of asset valuation.
- 2. Selecting the most promising securities.
- 1. Creating transaction models for each specific asset class and each specific asset.
- 2. Statistical verification of the models.
- 3. Working through a specific case in practice.
- 1. Unanimous approval by the members of the investment committee of the proposed transactions, as acceptable and attractive, individually and within the framework of the portfolio of the investment fund as a whole.
- 2. If any additional questions emerge at any stage of the analysis, additional analysis is conducted and the idea is reviewed.
- 1. Selecting allocation parameters for different asset classes, while accounting for the market conditions and the expectations of the managers for the returns on and volatility of the assets.
- 1. Creating transaction models for each specific asset class and each specific asset.
- 2. Statistical verification of the models.
- 3. Working through a specific case in practice.
- 1. Unanimous approval by the members of the investment committee of the proposed transactions, as acceptable and attractive, individually and within the framework of the portfolio of the investment fund as a whole.
- 2. If any additional questions emerge at any stage of the analysis, additional analysis is conducted and the idea is reviewed
- 1. Determining the new allocation for the various instruments while taking into the account the newly approved and executed transactions.
- 2. Reviewing the allocation position while taking into account the changes in the market conditions
- 1. Structural changes in the markets that can lead to a fundamental shift in the prices.
- 2. Efficiency of the portfolio allocation.
- 3. Attractiveness of the ratio of return to risk for the instruments of the portfolio.
- 4. Liquidity and the level of risk in the portfolio.