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ProspectusFactsheetInvestment StrategyInformation on the FundBenefits for investorsInvestment CriteriaBecome a ClientServices to the FundReports
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FAQ
What funds managed by KINTO are available for purchase by non-resident investors? How can the investor get the information about the fund NAV, portfolio structure and performance? What is the general procedure of investing into KINTO managed funds? What is an investment account? What are payment terms for investing into KINTO managed funds? What are fees for managing KINTO funds? Are there any minimum requirements to invest into KINTO managed funds? What is the price at which fund’s shares/units could be purchased? How funds’ net asset value (NAV) is calculated? Do KINTO managed funds pay dividends? Do KINTO managed funds invest into foreign securities? Are shares/units of KINTO managed funds listed on Ukrainian/international organized exchanges? Could KINTO guarantee profitability level for its funds? Redemption of Funds’ shares/units Taxation of non-resident capital gains after selling funds shares/units Could I invest into KINTO Funds without traveling to Ukraine, acting through the representative? Does KINTO provide brokerage services? How could I receive more information on KINTO funds? Whom to contact to ask more questions?
Established in 1992, KINTO is the oldest and highly reputable securities firm dealing in the Ukrainian stock market The Company witnessed from the very beginning the establishment of the stock market and greatly contributed to its development. Currently, KINTO manages 9 public investment funds with different characteristics and non-government pension fund with total assets under management amounting to $200 Mln. KINTO has about 130 employees and provides premier asset management and corporate finance services to international and local clients. What are benefits of investing into Ukraine through the fund as compared to direct investing into Ukrainian securities? DIRECT and INDIRECT ECONOMIC AND TAX BENEFITS Tax-wise, the funds are not subject to the company profit tax (e.g., on gains from selling the portfolio securities at a profit), thus providing very substantial and straightforward tax incentives for portfolio investment through the funds vis-à-vis entering the market directly. A fund investor’s profit is taxable on selling the fund’s shares or receiving dividends from the fund. By contrast, any income on-, or from selling individual securities would be taxable in Ukraine. Non-resident investor is spared extensive paperwork, time and cost needed when dealing in individual securities through brokers, custodians, registrars. BENEFITS OF REGULATION AND SUPERVISION Any fund must be registered with the State Securities and Stock Market Commission (SSSMC). Fund asset managers must be licensed by the SSSMC. Shareholders in the funds are adequately protected by various checks and balances. Thus, by contrast to investing in individual securities directly, the investor is additionally protected by the regulator, custodians, independent property appraisers and auditors, who would check all the aspects of the fund’s manager’s actions for prudence, fair and consistent valuations and pricing. The asset manager is required to provide to the regulator periodic reports of the funds activities, portfolio, asset value, and expenses. Elected to fund’s Supervisory Board, investor may influence fund’s activity. SEGREGATION OF ASSETS: the fund’s assets are kept and accounted for by an independent (from the manager) custodian. Please click here to acquaint yourself with the complete list of benefits of investing through the fund. What funds managed by KINTO are available for purchase by non-resident investors? Currently, KINTO manages 9 public investment funds with different characteristics and non-government pension fund. EQUITY funds: Closed-End Non-Diversified Corporate Investment Funds, allocating their assets into Ukrainian equities; structured in the form of the Open Joint Stock Companies. A successful example: SYNERGY was the first public investment fund in Ukraine set up in 2003 for the term of 3 years. The fund focused on domestic equity investments only. Synergy fund’s shares were the first corporate fund shares listed in Ukrainian major stock exchange PFTS. The fund terminated its activity in 2006 demonstrating the following performance: Net Asset Value Change per Share since inception in 2003: +700% Annual Return: +99.8% SYNERGY-2 Following the successful example of the Synergy fund, Synergy-2 was launched in 2005 for the term of 3 years. Termination: February, 2008.
SYNERGY-3 fund was launched in May, 2006 for the term of 3 years and continues the sequence of Synergy investment funds managed by KINTO. The fund’s objective is maximum appreciation of capital through medium-term investment in Ukrainian equities with growth potential higher than market average. Synergy-3 fund’s assets are allocated in the shares of industrial companies of leading sectors of the domestic economy: electricity, machine building and metallurgy, as well as in the “second- tier” companies of the new sectors: financial, services and food industry. The fund’s shares are listed in PFTS (ticker - IFSNR3). Termination: April, 2009. SYNERGY-4 was launched in May, 2007 for the term of 3 years. The objective of the fund: maximum appreciation of capital through medium-term investment into Ukrainian equities with growth potential higher than market average. The fund targets at achieving maximum results through investment in Ukrainian equities of the leading sectors of Ukrainian economy: energy, machine-building, metallurgy, oil and gas, chemical industry, food and construction, financial and consumer sector. The fund’s shares are listed in PFTS (ticker - IFSNR4).Termination: June, 2010 Synergy-5 was launched in November 2007 for the term of 5 years. The fund targets at achieving maximum returns through medium-term investment in Ukrainian “second-tier” and “third-tier” companies with high growth potential, focusing on equities of the consumer sector. Besides, Synergy-5 invests in equities of the leading domestic companies: energy, machine building, metallurgy, oil and gas. The fund suits best risky investors aiming to achieve maximum returns in mid term horizon. Termination Date: 2012 (coincides with EURO-2012 in Ukraine). The placement of shares is in progress at their net asset value. BALANCED funds: CLASSICAL is the first open-end fund in Ukraine set up in 2004. It is among the biggest and most profitable Ukrainian open-end funds. The fund adheres to the balanced policy of receiving the maximum possible returns under moderate level of risks through long-term investments into a highly diversified portfolio of government and municipal securities, Ukrainian corporate bonds, equity and money market instruments. The fund has an unlimited lifetime and undertakes to redeem investment certificates from investors anytime. NARODNY fund was launched in 2006. With the interval fund Narodny investor has an opportunity to purchase and redeem investment certificates not only in Kyiv, but in the regions of Ukraine. The fund adheres to the balanced policy of receiving the maximum possible returns under moderate level of risks through long-term investments into a strictly diversified portfolio of Ukrainian securities: equities, bonds, bank deposits, etc. The investor can purchase or redeem investment certificates of the fund at their net asset value on the 5-th, 15-th and 25-th day of each month in Kiev or on the following working day in the regions. BOND fund: Synergy Bond Fund was launched in February 2005. The fund’s assets are allocated into fixed-income securities. The fund’s objective is receiving a stable income with the minimum market risk through allocation of its assets into domestic corporate, municipal and governmental bonds. Fund’s termination date is 2014. The fund’s shares are listed in the PFTS (ticker - IFSNB). REAL ESTATE fund: SYNERGY REAL ESTATE was launched in 2005. The objective of the fund is maximum appreciation of capital through medium- and long-term investment in Ukrainian commercial real estate, development real estate projects and securities. The fund suits best the investors not limited with the investment horizon and willing to utilize the potential of the Ukrainian stock market and highly liquid and booming commercial real estate market. The Fund’s lifetime is 15 years (investing into real estate is a process characterized with long term maintenance, cycling and high cost of real estate properties), but the investor has a possibility of pre-term exit. The fund’s shares are listed in the PFTS (ticker- IFSRE). How can the investor get the information about the fund NAV, portfolio structure and performance? KINTO funds are very transparent. Lion’s share of the information on KINTO managed funds (the dynamics of the funds’ net asset value, portfolio structure and performance) is available in the open area on our home web site http://www.kinto.com/eng/. Additionally, fund’s shareholders receive an access to the closed area of our home website using it login and password to quarterly and semiannual asset managers’ reports, complete information on funds’ portfolios as well as the possibility to ask portfolio manager questions pertaining to fund’s activity.
What is the general procedure of investing into KINTO managed funds? Below is the general description of the sequence of steps to be taken in order to invest into KINTO managed funds:
In order to acquaint yourself with the detailed procedure of funds’ purchase, please click here for SYNERGY-3, SYNERGY-4, SYNERGY-5, SYNERGY BOND and SYNERGY REAL ESTATE funds and here for CLASSICAL fund and here for NARODNY fund. What is an investment account? An investment account is merely a cash account, which enables us to transact in local currency (hryvnia, UAH). The investment account consists of the part in UAH and the part in foreign currency. Foreign currency is transferred into the investment account and exchanged for local currency when the payment for purchase of fund’s shares/units is made. In its own turn, KINTO transfers payments for the investors as a result of funds/units redemption on investment account in UAH too. What are payment terms for investing into KINTO managed funds? A close attention should be paid to the payment deadlines for investing with funds under KINTO management. In terms of CLASSICAL, the payment should be made on the next banking day after the purchase of fund’s investment certificates. We strongly advice you to transfer the necessary investment amount to Ukraine on the preliminary consultations with the bank of your choice in Ukraine in order to be able to pay on time. In case of SYNERGY-3, SYNERGY-4, SYNERGY-5, SYNERGY BOND, SYNERGY REAL ESTATE funds the payment for buying fund’s shares should be made within 5 banking days. As it was mentioned earlier, for investing with KINTO funds the non-resident investor is required to open accounts in the bank in Ukraine of his/her choice. We strongly advise the investor to contact the bank of his/her choice in Ukraine in advance. We also kindly suggest the client to keep in mind that investor’s physical presence in Ukraine for at least one time is required to open accounts with the bank and to sign fund’s shares/units purchase agreements unless the client acts through the agent. Due to our previous experience, minimum two banking days are required for settling issues with the purchase of KINTO funds, including opening of investment and securities accounts. What are fees for managing KINTO funds? There are agent’s commissions for investing into KINTO funds. SYNERGY funds have management fee calculated as a percentage of the fund’s net asset value and an incentive fee. CLASSICAL, NARODNY and SYNERGY BOND have only asset management fee. Please check fees structure on the SYNERGY-3, SYNERGY-4, SYNERGY-5, SYNERGY REAL ESTATE funds. Are there any minimum requirements of invest into KINTO managed funds? For individual/ institutional investors: USD 100,000 per fund Please note that KINTO is flexible concerning above mentioned limits. Please contact KINTO representative to discuss your investment objectives. What is the price at which fund’s shares/units could be purchased? KINTO funds could be purchased at the price based on the Net Asset Value on the day when the Fund’s Shares/Units Purchase Agreement is signed plus agent’s commission. Please check the loads for SYNERGY-3, SYNERGY-4, SYNERGY-5, SYNERGY BOND, SYNERGY REAL ESTATE funds, and agent’s commissions for CLASSICAL, NARODNY funds. How funds’ net asset value (NAV) is calculated? Please learn about the NAV calculation on SYNERGY-3, SYNERGY-4, SYNERGY-5, SYNERGY BOND, and SYNERGY REAL ESTATE, CLASSICAL, NARODNY funds. The detailed procedure of the net asset value calculation is presented at each fund’s Prospectus, which could be accessed from KINTO’s home web site. Do KINTO managed funds pay dividends? KINTO corporate funds pay the investment profit in the form of dividends thus optimizing the taxation issue. Do KINTO managed funds invest into foreign securities? KINTO funds do not allocate their assets into foreign securities due to the current Ukrainian legislation. Once necessary changes in the legislation are adopted, we will consider allocating funds’ assets into foreign securities. Are shares/units of KINTO managed funds listed on Ukrainian/international organized exchanges? SYNERGY funds are listed on the First Ukrainian Securities Trading System (PFTS), First Ukrainian Securities Trading System is the major stock exchange (electronic trading platform) in Ukraine. Could KINTO guarantee the profitability level for its funds? Ukrainian legislation prohibits asset management companies to guarantee the return on investment funds. Major task of the asset management company is to make professional decisions and inform the clients on these decision and results. While choosing the appropriate investment destination, it is crucial to pay attention to the reputation of the asset manager in contrast to guarantees on the level of return. Redemption of funds’ shares/units KINTO undertakes the obligation to redeem CLASSICAL fund’s investment certificates anytime at investor’s request. The investor can redeem investment certificates of NARODNY fund at their net asset value on the 5-th, 15-th and 25-th day of each month in Kiev or on the following working day in the regions. Please acquaint yourself with the redemption procedure on CLASSICAL and NARODNY funds. SYNERGY-3, SYNERGY-4, SYNERGY-5, SYNERGY BOND, SYNERGY REAL ESTATE funds shares could be redeemed at the funds’ termination or on the secondary market through placing a bid on the First Ukrainian Securities Trading System (PFTS). Taxation of non-resident capital gains after selling funds shares/units The taxation issue should be viewed in case of each investor separately and depends on whether investor is a legal entity or an individual entity and if there is a Convention on Avoiding a Double Taxation between Ukraine and the country of investor’s tax residence. Could I Invest into KINTO Funds without traveling to Ukraine, acting through the representative? An individual or institutional investor could purchase KINTO funds’ shares/investment certificates acting through the agent (representative) on the basis of duly prepared power of attorney. Please note, that in this case additional paper work should be accomplished. KINTO also works with a number of institutional partners to simplify the purchase procedure. Please contact KINTO representatives for more information. Does KINTO provide brokerage services? KINTO does not provide brokerage services. Our brokerage department works to service KINTO fund’s orders only. How could I receive more information on KINTO funds? Lion’s share of the information on KINTO managed funds is available in the open area on our home web site http://www.kinto.com/eng/. Additionally, fund’s shareholders receive an access to quarterly and semiannual asset managers’ reports, complete information on funds’ portfolios and the possibility to ask portfolio manager questions pertaining to fund’s activity. I am an institutional investor with investment amount of $5 million. How could I utilize my investment potential in collaboration with KINTO? For clients with larger investment resources, KINTO can set up separate custom-tailored investment funds to accommodate for specific strategy preferences. A fund can be effectively owned by a single shareholder. Whom to contact to ask more questions? e-mail: stoianova@kinto.com Tel: +38 (044) 246 7350 Fax: +38 (044) 246 7641 |
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 © Kinto, Investment & Securities in Ukraine
Disclaimer 2 Lysenko St.,
Kyiv, Ukraine 01034 Tel.: (380-44) 246-7350, 246-7434 Fax: (380-44) 235-5875 |
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