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Trust management regulations
Trust management regulations of
Energy CAPITAL Interval fund
managed by Interfin CAPITAL Asset Management Company
I. General provisions
1. Interval fund’s name being Energy Capital (hereunder referred to as the Fund).
2. The type of the fund being Interval fund.
3. The full name of the fund management company being Interfin Capital Asset Management Company (hereunder referred to as the Management company).
4. The residence of the Management Company being 10/12 Bakuninskaya Street, bld.5, Moscow, 105005 Russia.
5. The Management Company was issued a license on March 4, 1997 N 21-000-1-00016 issued by the Federal Commission of the Securities Market (FCSM) to manage investment funds, unit investment funds and non-state pension funds.
6. The full name of the fund depository being the First Investment Unit Depository Private Company (hereunder referred to as the Depository).
7. The residence of the Depository being 8/26 Chayanova Street Moscow, 125047 Russia.
8. The Depository license as of August 8, 1996 N? 22-000-1-00001 issued by the Federal Commission for the Securities Market (FCSM) to act as a Depository of Investment funds, unit investment funds and non-state pension funds.
9. The Depository has a right to involve other depository for keeping and (or) accounting rights to the securities constituting the Fund.
10. The full name of the Registrar being the First Specialized Depository Private Company (hereunder referred to as the Registrar).
11. The residence of the Registrar being 8/26 Chayanova Street Moscow, 125047 Russia.
12. The Registrar license as of August 8, 1996 N? 22-000-1-00001 issued by Federal Commission for the Securities Market (FCSM) to act as a Registrar of Investment funds, unit investment funds and non-state pension funds.
13. The full name of the fund Independent Auditor being A-Hold Limited Audit Company (hereunder referred to as the Auditor).
14. The residence of the Auditor being 18/3 1st Tverskoy-Yamskoy Lane, Moscow, 125047 Russia.
15. The Independent Auditor license as of June, 25, 2002 N? E 000806 issued by Ministry of Finance of Russian Federation (MF RF) to audit exchanges, extra budgetary funds and investment institutions.
16. The full name of the fund Appraiser being Economic and Legal preview Limited Company (hereunder referred to as the Appraiser).
17. The residence of the Appraiser being 3 1st Shchipkovskiy Lane, Moscow, 113093 Russia.
18. The Appraiser license as of August 22, 2001 N? 000166 issued by Ministry of Property Relations of Russian Federation (MPR RF).
19. The trust management regulations of the Fund (hereunder referred to as the Fund regulations) determine the conditions of trust management of the Fund.
A shareholder transfers his assets to the Management Company for the purpose of consolidation of his assets with assets of other shareholders and inclusion them into the Fund for a fixed term, and the Management Company shall be obliged to manage assets on behalf of the shareholder.
A shareholder joins the trust management agreement by purchasing the units distributed by the Management Company.
20. Assets of the fund belong to the trust management shareholders (hereunder referred to as the investment unit holders) who are qualified to own shares by the rights of unit holders.
In specie division of assets of the fund and extraction of a share are not allowed.
Joining the trust management agreement means the refusal of unit holders to acquire a share in the assets held by the fund.
21. Unit holders shall be exposed to risk of loss of funds invested due to the fluctuation of the market value of assets of the fund.
22. The period of the Fund creation shall be from May 23, 2003 till June 10, 2003 or earlier in case if net worth value of the Fund constitutes 5mln rubles.
23. If net worth value of the fund was less the sum necessary to create the fund, the trust management agreement of the fund including all unit holders is terminated. In this case the Fund is subject to liquidation in accordance with the Investment Fund Federal Act.
Compensations accrued to the Management Company, to the Depository, to the Registrar, the Appraiser and the Auditor shall not be paid and expenses regarding trust management of the Fund and liquidation of the Fund shall not be refunded.
24. Expiry date of the trust management Agreement of the Fund being May 1, 2018.
The trust management Agreement of the Fund may expire with the last redemption date of the units before the expiry date of the trust management Agreement provided by the Fund regulations.
25. The trust management Agreement shall be deemed prolonged for the same period if the unit holders did not demand the redemption of all units by the expiry date of the trust management Agreement provided by the Fund regulations.
II. Investment declaration
26. Objectives of investment policy of the Management Company being long-term investments in securities purporting to increase the assets of the Fund. Investment objects, their structure and presentation.
27. Assets held by the fund can be invested in:
Government securities of Russian Federation;
Securities of local authorities of constituent areas of the Russian Federation;
Municipal securities;
Shares (ordinary and preferential) of Russian public companies excluding shares of Russian corporate investment funds relevant to real estate funds or funds of funds;
Bonds of Russian limited liability, additional liability and private companies, whose public registration of the issue was accompanied by their prospectus registration;
Bonds of the following issuers: Federal authorities, executive authority of constituent areas in the Russian Federation, local authorities and legal entities;
Investment units of open-ended, interval and closed-ended funds;
Foreign government securities;
Securities of international financial institutions;
Shares of foreign incorporated companies;
Bonds of foreign commercial organizations.
The assets of the Fund can be invested in securities of issuers relevant to the following sectors:
Power industry;
Electrical engineering;
Nonproductive domestic services of population.
The aforementioned securities in which assets of the Fund can be invested may be listed or not listed on the securities market.
The assets of the Fund can comprise funds including foreign exchange both on bank accounts and in deposits.
On creating the Fund the assets of the Fund may only consist of the assets included in the Fund by the unit holders.
28. The structure of the Fund assets:
The value of the shares of Russian public companies may constitute up to 100% of the asset value;
Funds on accounts and in deposits in a credit institution must not prevail 25% of the asset value;
The value of government securities of Russian Federation, government securities of constituent areas in the Russian Federation, municipal securities, Bonds of Russian limited liability, additional liability and private companies, Bonds of foreign commercial organizations, Securities of international financial institutions and Securities of foreign states cannot exceed 40% of the asset value;
The value of Securities of foreign states, Securities of international financial institutions, Shares of foreign incorporated companies and Bonds of foreign commercial organizations cannot exceed 20% of the asset value;
At least two thirds of weekdays during one-quarter the value of shares of Russian public companies excluding shares of Russian corporate investment funds and shares of foreign incorporated companies must not be less than 50% of the asset value;
The value of government securities of Russian Federation or securities of local authorities in constituent areas of the Russian Federation of one issue can be no more than 35% of the asset value;
The value of securities of one issuer (exclusive of government securities of Russian Federation and securities of local authorities in constituent areas of the Russian Federation) cannot exceed 15% of the asset value;
The value of securities having no market quotations cannot exceed 50% of the asset value;
The value of shares of Russian public companies and bonds of Russian limited liability, additional liability and private companies not listed on the securities market can be no more than 80% of the asset value;
The value of shares of Russian corporate investment funds and units of mutual funds cannot exceed 10% of the asset value;
The number of ordinary shares of a public company cannot exceed 10% of the total number of ordinary shares outstanding of this public company showing the issue results;
The number of units of a mutual fund cannot exceed 30% of the total units distributed by this mutual fund.
The paragraph of the regulations comes into force upon completion of the fund creation.
29. Investment risks.
Unit holders are exposed to risk of loss of funds invested created by the fluctuation of the market value of the securities and the assets held by the Fund. The value of units may both rise and fall depending on the fluctuation of the market value of investment objects.
While investing in securities risk factors being the following:
• World financial crises;
• Possibility of state default in respect of its obligations;
• Issuers bankruptcy;
• Global fall in prices in stock markets;
• World price fluctuations influencing commodity items and raw materials;
• Legislative amendments;
• Changes of political situation;
• Force-majeure circulation, etc.
While placing the assets of the Fund the Management Company shall take all necessary measures to provide full, exact and truthful information. The Management Company will try to diversify investments to lower risks and to decrease correlation of the portfolio with the price movement of stocks in the portfolio.
After having read and studied the Fund regulations, the investment declaration of the Fund and security valuation the decision to purchase units of the Fund is taken by an investor at his own discretion.
III. Management company rights and liabilities
30. The Management Company acts as a trust manager of the Fund by exercising any judicial and actual actions in respect of the assets of the Fund.
The Management Company deals with the assets of the Fund on its own account showing that it acts as a trust manager. This condition shall be deemed complied with if on performing acts in non-written form the other party is informed about its performance by the trust manager itself and in documents after the name of the Management Company it is marked “T.M.” Energy CAPITAL Interval Fund. Without showing that the Management Company acts as a trust manager it is liable personally against third parties and is answerable to them with its own assets.
31. The Management Company may:
• Exercise all the rights certified by the securities of the Fund including voting stock carrying with it voting rights without any special mandate;
• File claims and suits and act as a defendant in cases at court in relation to the trust management activities of the Fund;
• Make transactions with derivatives on the account of the assets of the Fund in the only purpose of lowering risk of loss in the value of the assets of the Fund. However, the total of derivative liabilities cannot exceed 10% of the asset value of the Fund;
• Transfer its rights and liabilities to the other Management Company under the trust management Agreement of the Fund in accordance with regulatory acts of the Federal authority for the Securities market;
• Decide on liquidation of the Fund.
32. The Management Company shall be obliged to:
• Exercise the trust management of the fund under the Investment Fund Federal Act, other Federal Acts and regulatory acts of the Federal authority for the Securities market and the Fund regulations;
• Act reasonably and in good faith, exercise the trust management of the fund for the best interests of the unit holders;
• Transfer the assets of the Fund to the Depository for keeping and/or accounting unless otherwise provided for the specific assets by regulatory acts of Russian Federation;
• Transfer immediately the copies of all source documents in relation to the assets of the Fund to the Depository after their making or filing.
33. Management Company may not:
• Manage assets of the Fund without approval of the Depository excluding managing the securities for the purpose of transactions executed on the stock exchange;
• Buy estate, stocks or other assets on the account of the Fund not provided for by the Investment Declaration of the Fund;
• Make transactions causing non-compliance with the Investment Fund Federal Act, regulatory acts of the Russian Federation or regulatory acts of the Federal authority for the Securities market and the Fund regulations;
• Alienate assets of the Fund free of charge;
• Commit transfer of assets which at the moment of the commitment do not constitute the fund exclusive of the transactions with securities on the stock exchange which provides for the rules of COD (Cash on Delivery);
• Receive payments on the terms of loan and credit contracts subject to be compensated on the account of assets of the Fund for redeeming the units in case of shortage of cash in the Fund. The total debt subject to be redeemed on the account of assets of the Fund under all loan and credit contracts must not be over 10% of NAV of the Fund. Under each loan and credit contract the term of debt financing (prolongation of the term inclusively) cannot exceed 3 months;
• Grant loans on the account of assets of the Fund;
• Use assets of the Fund to secure fulfillment of its own liabilities or liabilities of third parties which do not relate to the trust management of the Fund;
• Buy investment objects from its own affiliates on the account of assets of the Fund exclusive of securities listed on stock exchange;
• Buy investment units of other mutual funds managed by the Management Company on the account of assets of the Fund;
• Buy assets of the Fund excluding the fees under the Fund regulations, as well as the payment to the Management Company subject to be compensated for redemption of the units. In this case the commission for using assets of the Management Company is not allowed;
• Sell or transfer its own assets to the Fund managed by the Management Company;
• Buy securities issued by the Management Company, the Depository or the Auditor of the Fund as well as by their affiliates for the Fund exclusive of securities listed on stock exchange.
IV. The rights of the unit holders. Investment units.
34. The rights of the unit holders are fixed by investment units.
35. Investment unit is a registered security qualifying the holder for:
• A share in the assets of the Fund;
• A right to claim the proper trust management of the Fund from the Management Company;
• A right to claim redemption of the units and payment equal to his share in the assets of the Fund within the period as set out in the Fund regulations.
36. Every investment unit shall certify an equal share in the assets of the Fund and equal rights.
Investment unit is not an issuing security.
The rights qualified by the investment unit are fixed in book-entry form.
Investment unit has no nominal value.
The issue of securities derived from the investment units is not allowed.
37. There are no restrictions as to the number of investment units distributed by Management Company.
38. If on distributing the units to one unit holder the number of units contains a fraction, it is determined up to the sixth sign after comma.
39. When the creation of the Fund is completed investment units are traded freely on the market. The Federal Act sets restrictions to unit trading.
40. The rights to units are recorded in the Register and the custody accounts are in the Investment Unit Depositories.
41. The statements of accounts as of a given date from the Register may be granted.
Such statements are granted on the basis of:
• Application of a registered person for granting a statement;
• Application of a person with “investments units of an unidentified person” account open;
• Enquiry of a notary regarding opening of inheritance,
• Enquiry of the court, law enforcement body, taxation body or other public body authorized by the Law.
Without referring to any other method of granting the statement it is handed in to an applicant or his representative acting under Power of Attorney in person in the Registrar.
On granting a statement at the request of a notary or a public body authorized by the Law it goes directly to the address of the notary or public body prescribed in the application.
On the basis of the applications given in the paragraph of the Fund regulations the Registrar is obliged to grant a statement from the Register within 3 days from the date of filing the application or to send a statement refusal within 5 days from the date of filing the application.
V. Distribution of the investment units.
42. Distribution of the units is carried on the basis of applications to purchase the units (Annexes N? 1-2 being the part of the Fund regulations).
Every application to purchase the units provides for the distribution of the units with every payment to the Fund. The payments are not returnable.
43. Distribution of the units is carried by recording the purchase of the units in the Register.
44. Distribution of the units takes place with the payment to the Fund.
The procedure of the payment to the trust management of the Fund and to the Fund being to:
Transfer the payment on the Management Company account (hereunder referred to as the Fund account) open in the purpose of accounting the assets of the Fund;
The payment without the allowance provided for by the Fund regulations is included into the Fund from the date of recording the distribution of the units at the amount equal to the payment.
The units are not distributed if the payment is not made within the period of filing applications to purchase the units.
45. The applications to purchase the units are filed to:
The Management Company.
46. During the creation of the Fund the applications for unit purchase are to be filed on every business day.
When the creation of the Fund is completed the applications for unit purchase are to be filed on every business day during the following periods each year:
June 15 - 28;
September 15 - 28;
December 15 - 28;
March 15 - 28.
On the expiry of the period of filing applications for unit purchase and redemption are not filed till the next filing period.
47. Refusal to take applications for unit purchase can be allowed in the following cases:
Non-compliance with the conditions of filing an application stated by the Fund regulations;
Purchase of a unit by the entity that cannot be a unit holder under the Investment Fund Federal Act;
Decision to suspend the distribution of units.
48. Before the creation of the Fund is completed the minimum payment to qualify for buying a unit is Rb1000 (one thousand).
49. Distribution of the units is carried on if the payment not less Rb5000 (five thousand) is made to the Fund.
50. On creating the Fund the number of the units distributed by the Management Company is determined by dividing the payment made to the Fund into the minimum sum to qualify for buying a unit under the Fund regulations.
51. When the creation of the Fund is completed the number of the units distributed by the Management Company is determined on the basis of net asset value of a unit for the closing date of filing applications for unit purchase. In case if distribution of the units was suspended the number of the units is determined on the net asset value (NAV) of a unit at the date of renewal of the distribution of the units.
When the creation of the Fund is completed the net asset value gains the commission constituting:
• 1% (including VAT (value-added tax)) of NAV if the payment to the Fund is less or equal to Rb100 000;
• 0,5% (including VAT) of NAV if the payment to the Fund is within the range of Rb100 000 – 200 000;
• Nil if the payment to the Fund exceeds Rb200 000.
52. The distribution period of the units does not exceed 3 days from the expiration of filing applications for unit purchase.
If the payment is not made during the filing, an application for unit purchase is annulled.
VI. Redemption of the units.
53. Redemption of the units is carried when the creation of the Fund is completed.
54. Redemption of the units is carried on the basis of applications to redeem the units (Annexes N? 3-5 being the part of the Fund regulations).
The applications for unit redemption are irrevocable.
The applications for unit redemption are to be filed on every business day during the following periods each year: June 15 - 28;
September 15 - 28;
December 15 - 28;
March 15 - 28.
55. The applications for unit redemption, rights to which are certified on the personal account of a nominee holder in the Register, are filed by the nominee holder on behalf of a unit holder. In such applications a unit holder authorizing the nominee holder is identified.
56. The applications to redeem the units are filed to:
The Management Company.
57. Refusal to take applications for unit redemption can be allowed in the following cases:
Non-compliance with the conditions of filing an application stated by the Fund regulations;
Decision to suspend the distribution and redemption of the units.
58. After applications for unit redemption are filed, they are redeemed within the number of units held by a unit holder.
59. Redemption of the units is carried by recording the redemption of the units in the Register.
60. The redemption period does not exceed 3 days from the expiration of filing applications for unit redemption.
61. On filing the application for unit redemption the net asset value of a unit withholds the commission constituting:
1,8% (including VAT) of NAV on filing the application for unit redemption within the period less or equal to 200 days from the date of recording the purchase of the units in the Register;
1% (including VAT) of NAV on filing the application for unit redemption within the period over 200 days but less or equal to one year from the date recording the purchase of the units in the Register;
Nil on filing the application for unit redemption within the period over one year from the date of recording of the purchase of the units in the Register;
Nil on filing the application to redeem 200 or in excess of 200 investment units of the Fund.
62. The sum of the redemption is determined on the basis of the net asset value of a unit for the closing date of filing applications for unit redemption. In case if the redemption of the units was suspended the compensation is determined at the date of renewal of the redemption of the units.
63. On redeeming units the compensation is paid on the account of the assets of the Fund. In case of shortage of the funds to pay the compensation, the Management Company shall be obliged to sell the other assets held by the Fund. Before selling the assets held by the Fund the Management Company has a right to use its own assets or assets derived from the terms of loan or credit contracts and refundable on the account of assets held by the Fund for redeeming the units.
64. The sum of the redemption is transferred to the account stated in the application for unit redemption.
65. The sum of the redemption is paid within 15 days from the date of the redemption of the units.
66. The liability to pay off the sum of the redemption shall be deemed executed from the date of the transfer of the payment due from the account of the Fund to the bank account stated in the application for unit redemption.
VII. Suspension of the distribution or redemption of the units
67. The Management Company may suspend the distribution of the units of the Fund. The redemption of the units of the Fund may be suspended only simultaneously with the suspension of the distribution of the units of the Fund.
68. The Management Company may take a decision to simultaneously suspend the distribution and redemption of the units of the Fund in exceptional circumstances when it is required to serve the interests of the unit holders, namely:
When the net asset value of the units can’t be determined due to force-majeur;
When the rights and liabilities of the Registrar are transferred to the other entity. If the net asset value of a unit changed over 10% vs. of its net asset value on the prior date of its determination, the Management Company may simultaneously suspend the distribution and redemption of the units for the period not over 3 days.
In case of the simultaneous suspension of the distribution and redemption of the units the Management Company shall be obliged to notify the FCSM in writing indicating a reason for the suspension the same day, and to disclose the information as established by the FCSM.
69. The Management Company shall be obliged to suspend the distribution and redemption of
the units in the following cases:
• Suspension of the license of the Management Company, the Depository or the Registrar;
• Cancellation of the license of the Management Company, the Depository or the Registrar;
• Impossibility to determine the value of assets of the Fund due to reasons beyond power of the Management Company;
• Requirement of the FCSM;
• In other cases provided for by the Investment Fund Federal Act.
VIII. Payments and expenditures
70. The fee of the Management Company, the Depository, as well as the Registrar does not exceed 7,2% (including VAT) of the annual average of the NAV of the Fund from the assets of the Fund. The fee of the Appraiser and Auditor does not exceed 1,4% (including VAT) of the annual average of the NAV of the Fund determined by provisions of regulatory acts of the FCSM.
The maximum total payments for the fiscal year given in the paragraph do not exceed 8,6% (including VAT) of the annual average of NAV of the Fund determined by provisions of regulatory acts of the FCSM.
Terms introduced to determine the payments to the Management Company.
Interval is a period between two successive dates of determining the net asset value of the units (including the dates) distributed by the Management Company.
Gains on the assets purporting to calculate the payment to the Management Company for the interval are equal to the number of the units of the Fund registered on the fifth business day from the date of opening the interval multiplied by the value fluctuation of a unit for the given interval.
The payment to the Management Company is determined as 15% of positive gains on the assets purporting to calculate the payment to the Management Company for an interval. The payment is made to the Management Company within 10 days from the last date of the current interval. In case of negative gains on the assets purporting to calculate the payment to the Management Company for an interval, during at least one from the four last intervals the payment to the Management Company is determined as 15% of the sum of gains on the assets for the last four intervals. The excess of the payment to the Management Company is returned to the assets of the Fund within 15 days from the expiration of the current interval.
71. Payments to the Management Company as well as to the Depository, the Registrar, the Appraiser and Auditor are made each month from the assets of the Fund.
72. Payments to the Management Company are made quarterly before the 10th day of the month following the last date of the interval.
73. Payments to the Depository, the Registrar, the Appraiser and Auditor are paid in periods set out in the agreements between them and the Management Company.
74. In case of shortage of cash in the Fund on redeeming the units, the Fund will compensate for the sum paid to the Management Company on its own account.
75. The Fund will compensate for expenditures in respect to the trust management of the Fund including:
• Expenditures in respect to the trust management of a mutual fund including the management of assets of a mutual fund as well as making deals with the assets including payments to brokers, different duties charged by custodians, trade systems, the value of custody of securities, expenditures to maintain accounts open for the trust management of the Fund, stock duties;
• Expenditures in respect to the payment for legal services, the payment to a notary for authentication of documents and its extracts, for authentication of signatures on documents necessary for the trust management of the assets of the Fund, as well as expenditures derived from legal proceedings regarding the trust management of the Fund;
• Expenditures in respect to the payment of printing and advertising services including expenditures to make booklets and other printed products regarding the conditions of the Fund and the Management Company activities on the trust management of assets of the Fund, as well as expenditures to deliver them to unit holders;
• Expenditures in respect of disclosure of information about activities of the Management Company of the Fund and about the Fund under regulatory acts of Federal authority for the Securities market and the Fund regulations.
The maximum of expenditures in the paragraph, compensated on the account of assets of the Fund total 1,3% (including VAT) of the annual average of the net asset value of the Fund determined under regulatory acts of Federal authority for the Securities market.
76. Expenditures not provided for by the paragraphs 74 and 75 of the Fund regulations as well as payments exceeding the total maximum of payments set out in the paragraph 70 of the Fund regulations are paid by the Management Company on its own account.
IX. Net Asset Value
77. Net asset value determined by the Appraiser must be carried on acquiring or selling the assets and at least annually unless otherwise provided by regulatory acts of the Federal authority for the Securities market.
78. The procedure for determining the net asset value of a unit.
Net asset value of the Fund is determined within the terms provided for by regulatory acts of the Federal authority for the Securities market.
Net asset value of a unit is determined under regulatory acts of the Federal authority for the Securities market by dividing net asset value of the Fund for the closing date of filing the applications for unit purchase and redemption into the number of units recorded in the Register the same day.
X. Information about the Fund
79. At the Registry upon request the Management Company shall be obliged to submit the following documents:
à) The Fund Regulations as well as the complete copy with all the amendments registered by the Federal authority for the Securities market;
á) The Fund Regulations including all the amendments registered by the Federal authority for the Securities market;
â) The Regulations for maintaining the Register;
c) Statement of the net worth of the Fund and the annexes due;
d) Certificate of the net asset value of the Fund and the net asset value of a unit according to the recent valuation:
å) Asset balance of the Fund, accounting balance-sheet and profit-and-loss statement of the Management Company, accounting balance-sheet and profit-and-loss report of the Depository, the Auditor decision at the last reporting date;
f) Net asset value report of the Fund at the last reporting date;
g) Information about the fees to the Management Company, expenditures subject to be compensated on the account of assets of the Fund at the last reporting date;
h) Information about the suspension and renewal of the distribution and redemption of the units indicating the reasons of the suspension;
i) List of printings, press agencies as well as the web page used to disclose information about the trust management activities of the Fund;
g) Other documents containing information spread or published by the Management Company under the Investment Fund Federal Act, regulatory acts of the Federal authority for the Securities market and the Fund Regulations.
Information about the periods for filing the applications, the suspension and renewal of the distribution and redemption of the units, the Registries, the net asset value, the minimum payment to qualify for buying a unit and the payment due to redeem a unit on the present day, the net asset value before the creation of the Fund is completed or before the report about acquiring assets necessary to create the Fund is published, the commissions, the minimum number of the units distributed by the Management Company, the minimum payment to the Fund and the fund liquidation must be submitted by the Management Company on telephone numbers published in a printing provided for by the Fund Regulations.
80. The Management Company shall be obliged to publish the Fund Regulations before the Fund is created.
The Management Company shall be obliged to publish information about amendments in the Fund Regulations.
In case of the Fund liquidation due to the net asset value insufficient to create the Fund on the expiration of the creation of the Fund under the Fund Regulations, the Management Company must publish information about the repayment to the unit holders on its own account.
In case of the suspension or renewal of the distribution and redemption of units the Management Company must publish information about the suspension within the day after such decision is taken on its own account.
Reasons to suspend the distribution and redemption of units must be indicated in this information.
81. According to regulatory acts of the Federal authority for the Securities market the following information is subject to be published:
à) information about the firm name of the Management Company, its location, the Registries;
b) Accounting balance sheet of assets held by the Fund, accounting balance sheet and profit-and-loss statement of the Management Company;
c) Net asset value report of the Fund;
d) Information about the fees to the Management Company and expenditures subject to be compensated on the account of assets of the Fund;
e) Certificate of the net asset value of the Fund and the annexes due, other documents under the Investment Fund Federal Act;
f) Information about transfer rights and liabilities to other Management Company under the trust management agreement of the Fund;
g) Other documents under the Investment Fund Federal Act.
82. All information regarding the trust management of the Fund must be published under regulatory acts of the Federal authority for the Securities market.
The given information shall be published in Appendix to Vestnik of the FCSM (market reporter).
XI. Liabilities of the Management Company, the Depository and the Registrar
83. The Management Company is liable against the unit holders in the amount of the nominal loss by the rule of the Investment Fund Law, other Federal Acts and the Fund Regulations, as well as in incorrect determining of the value of a unit and of the redemption value.
If the tracking error of the net asset value of the Fund constitutes 0.5% or more of the NAV of a unit, the Management Company must make the payment due to a unit holder on the account of assets of the Fund.
If the tracking error of the net asset value of the Fund constitutes 0.5% or more of the NAV of a unit, the Management Company must make the payment due to assets of the Fund on its own account.
84. The Management Company is liable for the activities of the custodian appointed by the Depository if the Management Company gave the written permission to involve the custodian.
85. Repayment liabilities derived from the trust management of the Fund shall be redeemed on the account of Fund property. In case of shortage of assets of the Fund only own assets of the Management Company can be liable for the repayment.
86. Both the Depository and the Management Company are responsible before the unit holders for default of managing assets of the Fund.
87. The Depository is responsible for the custodian activities appointed to keep and/or to maintain the register of rights to securities of the Fund as if they were their own.
88. Both the Registrar and the Management Company are subsidiary responsible before the purchasers and the unit holders for default or improper execution of maintaining the Register provided for by the Investment Fund Federal Act, the Fund Regulations and the agreement with the Management Company.
XII. Fund liquidation
89. The Fund must be liquidated in case if:
• On the expiration of the creation of the Fund the net asset value is insufficient to create the Fund;
• The license of the Management Company is suspended or annulled and the amendments of
the Fund regulations due to the transfer of rights and liabilities to other management company do not come in force within 3 months from the date of the suspension or annulment of the license;
• The Management Company takes decision to be liquidated voluntarily and the amendments of the Fund regulations due to the transfer of rights and liabilities to other management company do not come in force within 3 months from the date of taking decision;
• The license of the Depository is suspended or annulled and the amendments of the Fund regulations due to the transfer of rights and liabilities to other Depository do not come in force within 3 months from the suspension or annulment of the license;
• The term of the trust management agreement is expired;
• The Management Company made the decision to liquidate the Fund;
• Other reasons occurred to liquidate the Fund provided for by Federal Acts.
90. The Fund is liquidated under the Investment Fund Federal Act.
XIII. Amendments of the Fund Regulations
91. Amendments of the Fund Regulations come in force if the Federal authority for Securities market registers them.
92. Amendments of the Fund Regulations regarding the investment declaration including changes of the fund type, the rise of the payment to the Management Company, the Depository, the Registrar, the Appraiser and Auditor, the rise of expenditures due to the trust management of the Fund, the discounts on redeeming the units come in force from the date not earlier than 3 months from the date of publicizing this information in Appendix to Vestnik of the FCSM (market reporter) and following the date of the expiration of the interval for filing applications.
93. Other amendments of the Fund Regulations come in force from the date of publicizing this information Appendix to Vestnik of the FCSM (market reporter).
D.V. Sachin
Director General
Interfin CAPITAL Management Company |
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