Investment funds (corporate and mutual funds)

To increase capital, investment funds are often created, the funds of which are invested in securities, precious metals, or real estate.

CIF, SIF, AMC - the abbreviations of the names of investment funds and companies provide great opportunities for business development, profit generation, optimization of the tax burden, and protection of assets.

In accordance with the law of Ukraine " About institutes common investment » from 07/05/2012, in Ukraine exist two types of investment funds for accumulation funds investors:

• Corporate investment funds (CIF);
• Shares investment funds (SIF).

Funds are also classified according to the order of activity, terms of existence, and directions of investments.

Professional management of fund assets is carried out by an asset management company (AMC) chosen by investors. At the moment, according to the data of the Ukrainian Investment Business Association, there are 300 companies in Ukraine that provide collective and individual trust management services. The interaction of the investment fund with the AMC takes place on a legal basis and is determined, first of all, by the type of joint investment institution.

Corporate investment funds: serious business decisions

The corporate investment fund operates in the form of an open joint-stock company: a legal entity that has supervisory bodies, issues shares, and interacts with the AMC on the basis of an asset management agreement.

The establishment of a CIF is carried out exclusively by way of the establishment (merger, division, separation, or merger, transformation is not allowed), with the aim of investors carrying out only joint investment activities.

Procedure creation of CIF:

• Lasts on average from 4 months to six months;
• Needs twice to collect meeting founders: for the first time - for adoption decision about creation fund, issue shares and approval project of the statute, and for the second time (constitutional fees) - for approval statute and results private placing shares among founders, creation supervisor advice, approval project agreement with AMC;
• Requires formation of authorized capital in a certain size: at least 1250 minimum salaries;
• Includes acquiring the status of a legal entity, as well as obtaining the status of an institute common investment.

Features interaction of the corporate investment fund with the AMC:

• AMC works in accordance with the provision agreement concluded with KIF services in which rules and boundaries are prescribed for adoption by the company investment decisions, depending on the level of control which wish save investors by fund activity;
• CIFimplements supervision of the work of the AMC with the help of carrying out annual and extraordinary general meetings, as well as constantly acting supervisory board;
• CIF can accept the decision to replace the AMC.

All property of the corporate fund is owned by CIF as a legal entity, and individual participating investors own him property in shares proportional to the amount their own shares .