Considering the fact that the Ukrainian stock market has huge potential for growth and the legislation of Ukraine regulating the activities of mutual investment institutions has undergone positive changes, AMC ART-CAPITAL Management decided to change the strictly conservative strategy of Asset Open-ended Fund to moderately risky.
“In making the move we are responding to the latest trends in the world’s and domestic financial markets,” says Viacheslav Korol, the Fund’s top manager.  “Foreign exchange positions are losing much of their appeal for medium- and long-term investors; real estate prices have slumped; debt instruments are now yielding lower returns; the domestic stock market is growing and so on. In view of all this, we took a decision to change the structure of Asset Open-ended Fund so that it can focus on liquid shares of the best Ukrainian companies rather than on debt instruments.”

Strategy and Objective of Fund Management.
Asset Open-ended Fund is designed to target investors who understand that now is the big moment to invest in shares but who are not ready to take all risks of individual investment. The Fund’s investment strategy consists in achieving steady medium- and long-term capital growth through forming a balanced structure of assets to ensure the best risk/return tradeoff. This allows investors to smooth over the effects of market fluctuations and, at the same time, to get much higher returns than from investing in deposits and bonds.

“We suppose that when the stock market starts growing, the rise in the value of the Fund’s investment certificates will top devaluation and inflation, which would be hard to guarantee if we kept to a strictly conservative strategy,” says Leonid Gorodetskiy, Chairman of IFC ART-CAPITAL Supervisory Board. “The diversified investment portfolio of Asset Fund is ideally suited both to beginner investors and to those who have previous experience of working with mutual investment institutions.”

One of the advantages of Asset Open-ended Fund is that it is free to withdraw from anytime, which is impossible if one invests in closed-end and interval funds or in bank deposits, where withdrawal means losing  part of income. In order to maintain high degree of the fund’s asset liquidity, 30% of the money or more is planned to be kept on deposit accounts. Accordingly, the percentage of liquid shares will not exceed 70% of the Fund. This will reduce volatility of the fund’s net asset value, resulting in lower losses as compared with a classic equity fund. Moreover, the percentage of shares is large enough and this provides virtually the same benefits for the investor as investing in an equity fund.

“Shares will be purchased for the Fund’s portfolio based not only on their liquidity level, but also based on how their issuers can maintain or increase their sales and incomes against a backdrop of crisis. Besides, we will take account of the fact whether the shares belong to the industries which have been least hit by crisis. These are mainly shares of power engineers, by-product coke companies, miners of energy minerals and iron ore raw materials,” Viacheslav Korol admits.
You can take a look at the Fund’s documents (Regulations, Issue Prospectus) on the website of ART-CAPITAL Investment Group (www.art-capital.com.ua).

Note
Characteristics of Asset Fund
Total amount of the Fund’s investment certificates issued - 500,000 (five hundred thousand) pieces.
Par value of one investment certificate - UAH 100.00 (one hundred hryvnias 00 kopiykas).
The minimum amount of money required to purchase the Fund’s investment certificates - UAH1000.00 (one thousand hryvnias 00 kopiykas)
Type of the Fund’s investment certificates - registered.
Form of issue of the Fund’s investment certificates - book-entry/non-certified.
Total value of issue of the Fund’s investment certificates - UAH 50 000 000.00 (fifty million hryvnias 00 kopiykas).

› Asset Management Company ART-CAPITAL Management, LLC was founded in 2005. The company represents ART-CAPITAL Investment Group in the market of mutual investment. Currently, AMC ART-CAPITAL Management runs five public and two venture investment funds, with the total assets value exceeding UAH190 million. The company launched a range of public investment funds targeting investors with diverse investment goals: Alternative Closed-end Equity Fund, Parity Interval Balanced Fund, First Real Estate Investment Fund, AntiBank Dividend Fund and Asset Open-ended Liquid Shares Fund.
Since the beginning of 2007, ART-CAPITAL Management has been actively developing a wide network of regional agents. The funds’ investment certificates and shares can be bought at 54 points-of-sale of securities dealers located in 30 largest cities of Ukraine.