Corporate Funds

Corporate investment fund (CIF) is an institute of mutual investment (IMI), established as an open-end joint-stock company, which exclusively conducts the activity on the mutual investment.

• The initial common stock (share capital) of the corporate investment fund shall be established from the funds, public securities, securities of the other issuers, admitted to trade on the stock exchange or in the trade-information system, as well as the real estate objects, necessary for the provisioning of the statutory activity.

• The size of the initial common stock (share capital) of the corporate investment fund may not be less, than the one, established by the laws for the open-end joint stock companies.

• The increase in the common stock (share capital) of the corporate investment fund shall be made exclusively at the expense of the funds of the shareholders, paid via purchase of the shares.

• The shares of the corporate investment fund shall only be common registered (inscribed) shares.

• Corporate funds may be term or termless.

• IMI may be either of diversified or non-diversified kind.

• Depending on the order of its activities, IMI may be of the open-end, interval or of the closed-end. In case of participation in the open-end or interval funds dividends are not payed, besides they only can be diversified. Close-end funds may only be term and dividends are payed. Securities of open-end and interval funds are purchased only by asset management companies.

• In the event if non-diversified IMI of the closed-end performs exclusively the private placement of the securities of the own issue and the assets of which for over 50% are composed from the corporate rights and securities, that are not admitted to listing on the stock exchange or in the trade-information system, such a fund is considered to be the venture fund.. Only the private entities may be the participants of venture fund. Nowadays in Ukraine venture funds make over 77 % of the total amount of funds and are the most attractive for investors.

• The corporate funds of the open-end type in the USA and many foreign countries are named mutual funds.

«ІТТ-management» offers a wide range of funds and instruments for its clients, managing the following corporate funds at the market of Ukraine: IF Ukrainian Industry, IF Export potential, CIF Manuscript, CIF ІТТ-Real Estate, CIF ITT-Finance, CIF ІТТ-Capital-2, Specialized funds for construction.

You will find more about corporate funds in Chapter 2 of The Law of Ukraine #2299-III “On Institutes of mutual investment (unit and corporate investment funds)” of March 15, 2001.