Mutual Fund (MF) – is a collective investment scheme, when holders invest cash into the fund by purchasing the shares. The managing company (JSC "Astana Finance") invests these assets into securities and other assets, allowed by the legislation (the law «About Investment funds" dated 07July2004), to add in their capital, and receive profit.
A share – is a registered non-documentary security, certifying the right of its owner for a share in the equity of the mutual fund.

The share can be sold, purchased, pledged, or granted etc according to the legislation.

The share in MF can be acquired by material bodies and business entities.  JSC Astana Finance is a Fund Manager.
An agreement for asset management between the fund investor and the Fund Manager is an Agreement one party assigns the other CASH in order to unify with money of other investors into ASSETS of the fund and their following investment into securities.

Confirmation that the Client is a owner of the share is a Register Statement where the number of purchased shares is mentioned.

We think that to receive a higher return on investment, it is required to invest for the period of not less than one year.  

Investing into MF, the investor becomes an owner of shares, their price, under the professional asset management by the Fund Manager under the favorable situation at the financial market and in the economy as a whole is rising. Selling the shares at a higher price, the investor gets the money more than invested initially. This way of build-up the capital can be more profitable than putting money on a deposit. While you do not need to follow the stock market prices - the Fund Manager JSC Astana Finance possessing the specific knowledge takes the responsibility of monitoring and analyzing market, making investment decisions about assets of mutual funds.

Preferential conditions in taxation

MF is not a legal entity and does not pay an income tax. Investment income of MF and the buildup of a share under the repurchase by the Fund Manager are not subject to taxation at the source of payment.  

Control

Control over the use of money of fund investors and the Fund Manager’s operations is supported by the State Agency on regulation and supervision of financial market and financial organizations  and by the independent bank-custodian, which keeps track of fund assets and supervises the accuracy of operations that the Fund Manager fulfills.

Daily, the accuracy of accounting and financial statements of the Fund Manager executed by the Auditor “Deloitte & Touché”, the member of the Big Four Auditing Companies. In addition, the register of share fund investors and their property rights have been overseen by the Registrar JSC “Stock Market Center”.

What types of the mutual funds do exist?
There are three types of the investment funds which are open-ended, interval and closed-ended. The difference is in terms of buying-back the shares and potential types of investments.

·         Open-ended

The fund investors have a right to buy back their shares in a determined period of time, set up by the rules of the Fund, but not less than one time for two weeks.

·         Interval

The owners of shares have a right to buy back in a determined period of time set up by the rules of the fund, but not less than 1 time a year.  

·         Closed-ended
The shareholder is entitled to participate in the general meeting of the shareholders of the Fund and to receive the dividends on terms and conditions provided by the rules of the Fund. In this case, the buyback of shares is not provided. The advantage of the closed fund is that its main management body is a shareholders’ meeting  who are capable to amend and add up the rules of the fund, determine the main conditions and terms of the Fund functioning. Also the shareholders’ meeting can decide on transforming the type of fund into the open-ended or the interval fund, but it is not allowed to transform the open-ended or interval fund into the closed-ended fund. 

More detailed information you can get over the phone: 

·         In Astana +7(7172) 59-10-74, Portfolio Investments Department

·         In Almaty +7(727) 244-60-45,  

·         Regions 8 800 080 5005, 24 hr, free of charge

At the following addresses: 

·                   In Astana – Bigeldinov St, 12, room 305.  Investment Portfolio Department

·         In Almaty – Samal-3, building  25 (intersection of AlFarabi St and Mendykulov St), 1 floor. 244-60-45

By e-mail: е-mail: r_aksenov@af.kz.

updated 11.12.2008

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