Investment Certificates Issue
of the Closed-End Non-Diversified Unit
Investment Fund “Index UX”
of the Private Joint Stock Company “Ê²NTO”
1. Name of Private Joint Stock Company:
1.1. Full name: Private Joint Stock Company “KINTO”;
1.2. Short name – PJSC “Ê²NÒÎ”.
2. Registration Code (ªÄÐÏÎÓ) – 16461855.
3. Location - 2 Lysenko St., Kyiv, Ukraine.
4. Tel – (044) 246-73-50.
5. Fax – (044) 235-58-75.
6. Date and the institution of the state registration: registered as a legal entity by the Pechersk District State Administration in Kyiv on 23 March, 1992; Pechersk District State Administration in Kyiv on 11 December, 2009 changed the legal entity state registration Certificate.
7. Information on the managers:
1.1. Closed-End Non-Diversified Unit Investment Fund “Index UX” (“The Fund”);
1.2. Short name - CNUIF “Index UX”.
2. Date and the Number of the Certificate on receiving registration code (ªÄÐ²Ñ²) – January 12, 2011, ¹1553.
3. Registration code (ªÄÐ²Ñ²) – 2321553.
4. Termination date – 11/01/26.
5. The time limit for placement of the Fund’s investment certificates, set up for reaching activities norms – no later then 6 (six) months from the date of registration of issue of the Funds’ investment certificates.
6. The date of the beginning of making settlements with the Fund’s participants – no later than three working days after selling the Fund’s assets, provided other is not stipulated by current legislature.
7. On the date of making a decision on approval of the Fund’ Prospectus the Supervisory Board has not been elected.
These Regulations for the Closed-End Non-Diversified Unit Investment Fund “Index UX” of the Private Joint Stock Company “KINTO” (“Regulations”) are based on the following Ukrainian laws: “On Securities and Stock Exchange”, “On the National Depositary System and Electronic Transactions With Securities in Ukraine”, “On Collective Investment Institutions (unit and corporate investment funds)” and Rulings by the State Securities and Stock Market Commission (“Commission”). These Regulations aim to regulate creation and functioning of the Closed-End Non-Diversified Unit Investment Fund “Index UX” of the Private Joint Stock Company “KINTO” (“the Fund”).
1. Information on the unit investment Fund and Fund’s investment certificates
1.1. Name of the Fund:
1.1.1. Full name of the Fund – Closed-end Non-Diversified Unit Investment Fund ”Index UX”;
1.1.2. Short name: CNUIF “Index UX”.
Full name and short name of the Fund are equivalent.
1.2. Term – January 11, 2026.
1.3. Form of issuance of the Fund’s investment certificates – Nominal Shares.
1.4. Form of the Fund’s investment certificates – non-documentary.
2. Information on the asset management company
2.1.1. Full name – Private Joint Stock Company “KINTO” (“the Company”);
2.1.2. Short name – PJSC “KINTO” .
2.2. Registration Code (ªÄÐÏÎÓ) – 16461855.
2.3. Location - 2/1 Lysenka/Yaroslaviv Val St, Kyiv, Ukraine.
3. Procedure for Establishing, Responsibilities, Activities and Composition of the Fund’s Supervisory Board
3.1. The Fund’s Supervisory Board (“Supervisory Board”) is composed of 3 (three) members elected from the number of Fund’s investors (“Investors”). The Supervisory Board’s objective is to supervise the Fund’s investment declaration implementation, safekeeping of the Fund’s assets, registration of the nominal securities owners, Fund’s audit and Fund’s assets valuation.
3.2. Any Fund’s investor could be elected as a member of the Supervisory Board in case he (she) owns not less than 1 000 (one thousand) investment certificates of the Fund.
3.3. Among those, who meet the criteria mentioned in paragraph 3.2 of these Regulations, the priority-driven right to become members of the Supervisory Board have those Investors, who own the largest number of the Fund’s investment certificates.
3.4. The Supervisory Board is elected annually.
3.5. The Company on the date of January 20 decides on the Investors, who, according to the paragraph 6.8. of these Regulations have the right to enter the Fund’s Supervisory Board, and within 10 (ten) working days from the mentioned date sends to these Investors by the recommended letter a proposal to become member of the Fund’s Supervisory Board.
3.6. The answers on proposal to enter the Supervisory Board are accepted by the Company during 10 (ten) working days from the date despatched of this proposal, mentioned in paragraph 3.5. of these Regulations.
3.7. The Company within five working days (starting from the expiry date of the accepting answers on proposals to enter the Supervisory Board) sends by the recommended letter to those, from whom answers were received:
- Notification that the Investor has become a member of the Supervisory Board;
- Notification that according to the paragraph 3.1. and 3.3. of these Regulations the Investor has not become a member of the Supervisory Board.
3.8. The Company sends invitations not later than 10 (ten) working days before the Board’s meeting to be held.
3.9. An article on elections of the Fund Supervisory Board’s Head and a Secretary is required to be on the first Fund Supervisory Board meeting’s agenda. An article on elections of the Head of the Supervisory Board is required to be the first point on the Board meeting’s agenda.
3.10. All Supervisory Board’s members present at the meeting elect the Head of the Fund’s Supervisory Board though a majority. The Head of the Supervisory Board could be re-elected anytime.
3.11. The Head of the Supervisory Board organizes Board’s work, calls meetings of the Supervisory Board, presides over Board’s meetings and keeps minutes. If the Head of the Supervisory Board could not participate at the Board’s meeting, another Supervisory Board’s member acts on behalf of the Head according to the decision taken by the members of the Board.
3.12. Meeting of the Fund’s Supervisory Board could also be called on the request of a member of the Supervisory Board, an auditor (auditing company), Fund’s custodian or the Company itself. An initiator, who called the Fund Supervisory Board’s meeting, is required to inform members of the Board by a written letter specifying date, time, location and agenda of the Board’s meeting in not less than 10 (ten) working days.
3.13. The Fund Supervisory Board is authorized to take decisions on the agenda issues only if two thirds of Board’s members are present at the meeting.
3.14. Fund Supervisory Board’s terms of reference include:
- Elections of the Head and Secretary of the Supervisory Board;
- Ratification of amendments suggested by the authorized Company’s body to the Fund’s Regulations;
- taking decision on paying the Company| success fee;
- Approval of decision on discontinuing agreements with the custodian, registrar and auditor (auditing company).
3.15. Each Fund Supervisory Board’s member has one vote during the Board’s meeting.
3.16. Majority present at the meeting makes Fund Supervisory Board’s decisions. The vote of the Head of the Fund’s Supervisory Board or his representative is conclusive.
3.17. Minutes of the Fund Supervisory Board’s meeting should be finalized in no more than 5 (five) working days after the meeting was held. Minutes should include the following information about the meeting:
- Location and date;
- List of attendees;
- Issues to be voted on, vote results and decisions taken. The Head and a Secretary of the Board sign the Fund Supervisory Board’s Minutes.
3.18. Any member of the Fund Supervisory Board has the right to participate at the Supervisory Board directly or act through a representative, authority of whom should be confirmed in accordance with the current legislative norms.
3.19. If, as a result of alienation of the Supervisory Board’s member’s Fund’s investment certificates, the number of his/her investment certificates has become less than the number mentioned in the paragraph 3.2 of these Regulations, such a member of the Fund Supervisory Board loses his/her membership. At the same time, the number of Board’s members is less than required in the item 3.1 of these Regulations, so the Fund Supervisory Board’s meeting could not be held until the minimum required number of members of the Supervisory Board is reached. The Company’s Supervisory Board temporarily acts as the Fund’s Supervisory Board until the Fund’s Supervisory Board is formed.
4. The Procedure of the Net Asset Value and Investment Certificates Placement (Redemption) Price Determination
4.1. The Fund's net asset value is determined according to the procedure stipulated by the "Regulations on determination of collective investment institutions net asset value" (unit and corporate investment funds) (“Regulations”), approved by the decision of the Securities and Stock Market Commission on the 2 July 2002 No 201 (“Regulations”). In case the changes are made to these Regulations or in case the regulative acts on changes in the procedure of net assets value determination are approved, the net value of the Fund's assets is determined according to the requirements of legislature in force and corresponding regulative documents.
4.2. When calculating the Fund’s net asset value, the Fund’s assets are valued by the following way:
- Before the Commission recognizes the Fund as such that meets the minimum asset requirements set up for unit investment funds by current legislature – at the end of the last working day of the calendar month and when the Company is requested by the Commission to submit the report on the Fund’s activities;
After the Commission recognizes the Fund as such that meets the minimum
4.3. Before the Commission recognizes the Fund as such that meets the minimum asset requirements, the placement of the Funds investment certificates is performed by the Company at their nominal value.
4.4. After the Commission recognizes the Fund as such that meets the minimum asset requirements, the placement and redemption of the Funds investment certificates is performed by the Company at their calculated value.
4.5. The calculated value of the investment certificate is determined as the ratio of the Fund’s total net asset value to the number of the Fund’s investment certificates outstanding on the date of calculation.
4.6. The value of the Fund's investment certificates acquired by the investor (redeemed from the investor) is determined on the basis of the calculated value of the Fund's investment certificates on the day when the investor submits application (for acquiring or redeeming Fund' investment certificates).
5. The Procedure of Determination of Company's Management Fee and Covering the Expenses Incurred by the Fund
5.1. Company’s management fee is determined depending on the net asset value of the Fund.
5.2. The Company’s management fee is accrued and is paid out monthly by cash assets.
5.3. Determination of the net asset value for calculation of the Company’s management fee is made on the basis of information on average monthly net asset value of the Fund as of the end of the last working day of the corresponding month.
5.4. Finalization of the Company’s annual fee is made on the basis of the average annual net asset value calculation taking into account average monthly net asset value estimates.
5.5. Company’s management fee without bonus may not exceed 5 (five) percent of annual average Fund's net asset value.
5.6. Management Fee is 0.9% of the Fund’s average Net Asset Value (NAV)
5.7. Other fees and expenses paid from the Fund's assets:
- Fee to the Fund's custodian;
- Fee to the Fund's registrar;
- Fee to the Fund's auditor;
- Fee to securities traders;
- Operating expenses incurred in connection to the functioning of the Fund, including:
- Registration services (state duties and other similar services);
- Payment for bank servicing;
- Notary services;
- Payment for publications of the required information on the Fund's activities;
- Informational services (payment for acquiring information regarding the issuers in the securities of which the Fund has allocated or plans to allocate its assets; payment for other information required for collective investment);
- Advertising services associated with circulation of the Fund's securities;
- Expenses for servicing the Fund's participants and circulation of securities, including expenses on the interest payments for loans, received by the Company to purchase securities (taking into consideration limitations set up by the current Ukrainian legislature).
5.8. Expenses specified in item 5.7 of the Regulations (except Company’s management fee, taxes and other obligatory payments, stipulated by the law) may not exceed 5 (five) percent of annual average Fund's net asset value during the fiscal year.
5.9. The Company at its own account pays for other expenses and expenses exceeding the amount specified by legislation.
6. Procedure for distribution of the Fund’s profit
6.1. During the Fund's term the profit received by the Fund is not distributed among the shareholders.
6.2. No dividend will be accrued or paid out.
7. Procedure and Terms of the Investment Certificates Redemption by the Company
7.1. The Fund’s securities are redeemed on the basis of the received by the Company applications for redemption which should comply in form with the legislative acts of the Commission.
7.2. The Fund’s certificates are redeemed on the termination of the Fund’s activity.
7.3. On termination of the Fund’s activity the securities are redeemed under procedure stipulated by the Regulation on the procedure of termination of the unit investment fund and settlements with investors at liquidation, approved by the Decision of Commission as of October 5, 2010 No. 1510.
7.4. Settlements with Investor are made through the bank transfer on the Investor’s bank account.
7.5. The Fund’s certificates redemption price is one and the same for all participants.
7.6. The Company has the right to redeem the Fund’s certificates prior to the Fund’s termination (early redemption). The Fund’s certificates are not redeemed prior to the receipt of the written notice from the Commission about recognition the Fund’s assets as such that satisfy the Commission’s demands about the minimum amount of ICI assets.
7.7. Minimal amount of securities which the Investor can redeem early is 5 000 (five thousand).
7.8. The securities are redeemed early under the following
7.8.2. Notifications and Applications for redemption are submitted to the Limited Liability Company “KINTO, Ltd” (“Agent for redemption”). In case the securities are submitted for early redemption by the Agent for redemption, Notifications and Applications for redemption are submitted directly to the Company.
7.8.3. The amount of securities which can be redeemed is
limited – the total amount of securities which can be redeemed during the day
may not exceed 5% (5 percent) of the total amount of the Fund’s securities in
circulation as of the last working day, prior to the day of submitting
7.8.5. On the day when the Investor submits Notification, he should sign preliminary agreement on obligation to conclude agreement on securities redemption, the amount of which is determined taking in the account cl.7.8.3. and 7.8.4. of the prospectus (“Preliminary agreement”).
7.8.6 On the third working day after submission of Notification and signing
the preliminary agreement, the Investor should submit Application for
redemption, in which the amount of securities stated in the Preliminary
agreement is indicated. The Application for redemption is irrevocable.
of the Closed-End Non-Diversified Unit
Investment Fund “Index UX”
of the Private Joint Stock Company “Ê²NTO”
1. Full name of the fund - Closed-end Non-Diversified Unit Investment Fund ”Index UX”.
2. The Fund was founded according to the decision of the general shareholders’ meeting of the Private Joint Stock Company “Ê²NTO” (Minutes as of August 30, 2010).
3. The objective of the Fund's activity is raising funds from investors and increasing the value of capital through collective investment activities.
4. The Fund’s assets comprise securities (Ukrainian and foreign, state securities guaranteed by the Cabinet of Ministers of Ukraine and municipal) and money market funds, including funds in foreign currency, bank metals, real-estate, other assets provisioned by current legislature of Ukraine.
5. The Fund’s assets can not comprise assets listed in the Commission’s regulations.
6. The Fund’ assets structure must comply with the requirements set up by current legislature for non-diversified investment fund asset structure.
7. The Company is not allowed to purchase or additionally invest in securities of one and the same issuer more than 15 (fifteen) percent of the Fund’ total asset value.
8. The above requirements to the Fund’ asset structure are applied in 6 (six) months from the day of registration of the Fund’ Regulations.
9. During the asset management process, the Company adheres to all requirements stipulated by the current legislature on the structure of assets of the diversified unit investment fund.
Section D. Information on the Issue of Fund’s Investment Certificates
1. The investment certificates are placed by open (public) placement.
2. Total value of the Fund’s investment certificate - UAH 1,000,000,000 (one billion)
3. Nominal value of the Fund’s investment certificate - UAH 100 (one hundred)
4. Number of the Fund’s investment certificates – 1,000,000 (one million)
5. Form of the Fund’s investment certificates – non-documentary.
6. Form of issuance of the Fund’s investment certificates - nominal
7. The beginning of placement of investment certificates is on the eleventh calendar day after publishing the registered in the Commission Prospectus, (provided the Fund’s investment certificates are awarded the international identification number on this date) in case this day is the day-off or a holiday – in the first day afterwards.
8. Date of the end of placement – 29/12/17.9. Procedure for defining selling price of investment certificates.
Investment certificates are placed at the price set up as the amount of the Agent’ fee and:
–nominal value of the Fund’s investment certificate – until the day of receiving from the commission the written notification on the recognition of the Find as such, which corresponds the requirements towards minimal asset value for ICI;
– calculating value of the investment certificate – from the day of receiving from the Commission the written notification on the recognition of the Find as such, which corresponds the requirements towards minimal asset value for ICI.
10. The Agent fee which increases the price of the Fund's investment certificates concludes 2 % (two percent)
11. The procedure of investment certificates placement and payment.
11.1. The placement of the Fund’s investment certificates is done by the agent on placement and buy-back of shares (Agent). The information on the Agent is in this Prospectus.
11.2. Only the trader, who is the participant of trades on the PJSC “Ukrainian Stock Exchange” and undertakes to be a market–maker on the Fund’s investment certificates on the indicated stock exchange, can be the Agent.
11.3. A person who is willing to purchase Fund’s investment certificates (“Investor”) should submit an Application on the investment certificates purchase (“Application on purchase”) directly or through the representative, who acts on behalf of the Investor according to the appropriately formalized power of attorney, to the Agent and on the address mentioned above.
11.4. Applications on purchase are accepted each working day from 1000pm to 1100pm.
11.5. The investor can be refused in accepting his application for purchasing if:
– the form of the Application does not correspond to the requirements set up by current legislature;
– on the day of submitting Application for purchasing the Agent (Subagent) has placed the whole amount of the investment certificates stipulated by the corresponding legislature;
– The Application for purchasing is submitted after the end of the corresponding Stage of placement, listed in p. 11.4 of this Section, or after the date of the end of placement of the Fund’s investment certificates, specified in p.8 of this Section.
11.6. Right after the Application for purchase is accepted, the Company signs an Agreement with the Investor on the Fund’s Investment Certificates Purchase. If the Investor is married at the time when the Agreement is concluded, the Investor’s spouse should give his (her) consent on signing the mentioned Agreement. Such consent should be presented in the written form:
– Simple written form (Investor’s spouse should be physically present during the Agreement singing process);
– Notarized written form (presence of the Investor’s spouse is not required during the process of signing the Agreement). The requirements to the spouse’s written consent could be found at the Agreement on purchase.
11.7. While purchasing Fund’s investment certificates, the Investor is joining the Fund while signing an Agreement on the investment certificates purchase on the following conditions:
1) The Investor transfers payment for Fund’s investment certificates to the Company. Funds received from the Investor are allocated on the stock market on the company’s discretion according to the directions described at the Investment Declaration;
2) The Investor gives his (her) consent to the Company to manage Fund’s assets by signing an Agreement on Purchase of Fund’s Investment Certificates. Fund’s assets are comprised of securities and cash, which form the pool of money created as a result of collective investment;
3) The Company’s authority on owning and managing Fund’s assets are specified at the Agreement on purchase, Fund’s Regulations and current legislative norms;
4) Sale of all Fund’s investment certificates owned by the Investor relieves the Investor from any legal responsibility to the Company
11.8. The investor pays for the investment certificates by bank transfer of funds in the amount stated in the Agreement on purchase of investment certificates to the Fund’s current account.
11.9. The Investor is recognized as such that fulfilled his obligations for payment of the Funds investment certificates if the funds in the amount stated in the Agreement on purchase of investment certificates are accounted to the Fund’s current account within the day of submitting Application for purchase.
11.10. In case, the funds for investment certificates are accounted on the fund’s current account later than the date stated in p.11.9 of this Section, these funds shall be transferred back to its owner no later than the following working day from the day of its receipt.
11.11. The Company fulfills all actions required for writing off the Fund’s investment certificates for benefit of Investor no later than the following working day from the day of making payment.
12. The minimum amount of the Fund’s certificates which the Investor can purchase based on one Application for purchase is 2000 (two thousand).
13. The investor can buy investment certificates at the following address:
– Kyiv, 2/1 Lysenka/Yaroslaviv Val St (LLC «KINTO», Ltd»);
– Kyiv,36 D Saksaganskogo St;
– Kyiv,55 B Horyva St;
14. Rights of Fund’s investment certificates Owners:
- To receive dividends on the Fund’s investment certificates according to the procedure and conditions stipulated by the Fund’s Regulations:;
- Become a member of the Fund’s Supervisory Board according to the Fund’s Regulations;
- Other rights stipulated by current legislature;
15. The Agent's Commission increases the price of the Fund's securities placement (decreases the redemption price) by 1% (one percent).
16. Notification on the Fund’s investment confiscates issue is done by publishing the registered Prospectus in the official printed edition of the State Securities and Stock market Commission within the terms stipulated by current legislature.
17. The funds attracted from the Fund’s investment certificates may not be used to cover the Company’s losses.
18. If the Commission declares the issue of the Fund’s investment certificates invalid, the Company takes the responsibility to return collected money to investors in the time frame that is specified by the law.
The placement of the investment certificates is done for the first time.
- Name – Private Joint Stock Company «Ukrainian National Securities Depository»;
- Code (ªÄÐÏÎÓ) – 35917889;
- Location – 04107, Kyiv, Tropinin St, house. 7-G;
- validity of licenses for professional activity in the stock market – depository activity, namely depository activities of securities – from 27/05/09 until 27/05/19.
- Name – “BTA Bank”;
- Code (ªÄÐÏÎÓ) – 14359845;
- Location – 75, Zhilyanskaya Str., Kyiv;
- Series, number and date of issue of the License on securities issuance and
circulation – AB ¹376969 as of 23.10.09
Section H. Information on the
Section I. Information on the securities
traders who place and redeem Fund’s investment certificates.
3. Name – Limited Liability Company «Millenium Capital»;
4. Name – Limited Liability Company «Fundstore Plus»;
© Kinto, Investment & Securities in Ukraine
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Kyiv, Ukraine 04070
Tel.: +380 (44) 462-5377, 462-5140