A mutual fund consists of assets, i.e. securities, funds, bonds and other tangible values. A fund’s assets are owned by investors and their ownership rights are expressed by unit certificates. An unlimited number of people can invest in a mutual fund. Every investor has a share in the fund, by which the investor participates in all the fund’s investments and returns.
A mutual fund does not have legal personality. Its assets are not a part of the asset management company’s assets.
A unit certificate is a security that expresses the ownership of a share in the fund’s assets.
After your invested amount has been credited to the fund’s account, you acquire the fund’s unit certificates. Their number depends on the fund’s exchange rate on the investment execution day. For example, if you invest EUR 100 and the fund’s exchange rate on that day is EUR 0.100000, your investment acquires 1 000 unit certificates of this fund.
The current value of your assets is determined by multiplying the number of unit certificates and the current value of one unit of the fund.
For example: As at 1 September 2016, the current value of one unit of the 1.PF Slnko, o.p.f. mutual fund is EUR 0.036638. You own 10 000 units. The current value of your assets as at 1 September 2016 is 0.036638 x 10 000 = EUR 366.38.
The current unit value can be found on our website – FUND PERFORMANCE. The number of your purchased units can be found in your IAD ONLINE, in an annual shareholder account statement or you can obtain information in person at the IAD Investments Client Centre.
No, a shareholder may redeem unit certificates at any time. Investments are not limited by time in any way. It is good if a shareholder follows our recommended minimum investment horizon.
The recommended investment horizon depends on the investment focus of the particular fund. In principle, the more risky securities in the fund’s portfolio, the longer the recommended investment horizon. A longer investment period reduces potential losses caused by a decrease in the value of securities.
Investment horizons are not fixed and it is up to each investor to choose the investment period. The company cannot prescribe how long investors have to keep their investments in a fund. A mutual fund’s investment horizon is set to deliver the expected return with a specific investment strategy. It is very likely in standard market and economic conditions.
A fund’s performance is a percentage change in one unit of the net value of the mutual fund’s assets compared to the previous period. The period is usually 12 months. The appreciation is expressed as a percentage change over the relevant period. A period of one year is abbreviated as p.a. (from Latin per annum - per year).
The distribution of investments in a large number of securities in our funds prevents the risk that the client could lose the entire invested amount. The purpose of investing in mutual funds is professional asset management with the objective to generate the expected return in the recommended time horizon.
You can invest any amount in our mutual funds. The only limitation is the minimum initial investment and the minimum subsequent investment. The minimum investment in both cases amounts to EUR 20 and applies to all funds.
An investment involves an entry fee, which will be deducted from the invested amount. The fee depends on the invested amount and the particular mutual fund.
The information on entry fees is provided in the basic details and in the sales prospectus of each mutual fund.
You can request to redeem your unit certificates at any time as follows:
Send a completed and notarially certified Request for the Payment of Unit Certificates by mail or deliver it in person to the company’s registered office.
If you have the PLUS secure access set up in IAD ONLINE, you can complete the Request for the Payment of Unit Certificates online and send it to us in the system.
Visit the IAD Investments Client Centre in Bratislava and complete the request with an employee of IAD Investments.
We will send you money for your unit certificates to the specified bank account.
Unit certificates can be donated by executing a donation agreement with officially certified signatures. The original or an officially certified copy of the donation agreement delivered to the registered office of IAD Investments, správ. spol., a.s., Malý trh 2/A, 811 08 Bratislava, is a final document enabling the transfer of unit certificates to a donee.
Collective investment and activities on the financial markets are subject to a strict legislative framework of the Slovak Republic and European Commission’s directives. Moreover, we are subject to self-regulation of the Slovak Association of Asset Management Companies.
Only an asset management company may manage assets in mutual funds, in strict accordance with Act on Collective Investment No. 203/2011 Coll. The depository, currently ČSOB, a.s., oversees compliance with the legislation. The asset management company must not make any transactions with a fund’s assets without the depository’s consent. The National Bank of Slovakia (NBS) as a government authority for capital market with relevant powers may also control and interfere with the activities of asset management companies.
Assets in mutual funds are separated from assets of the asset management company. The NBS and the depository oversee the activities of the asset management company to prevent the management of assets that could damage the shareholders.
If the asset management company goes bankrupt, the NBS will appoint a new asset manager to manage its mutual funds.