ABLV Asset Management, IPAS Changes Custodian Bank for Its Mutual Funds

Riga, Latvia, May 28, 2018, 11:33 / Investments

On 22 May 2018, ABLV Asset Management, IPAS signed an agreement with the JSC Baltic International Bank which will now become the new custodian of the mutual funds managed by ABLV Asset Management, IPAS.

According to the Law on Investment Management Companies, ABLV Asset Management, IPAS carries out transactions involving assets of the mutual funds through a custodian bank, which was ABLV Bank, AS by now. After the new agreement is signed, ABLV Asset Management, IPAS will continue managing the mutual funds, while JSC Baltic International Bank will undertake the function of a custodian bank.

The agreement will enter into effect in two stages: the provisions regarding custody of the assets will take place on the day of signing the agreement, while other functions, including supervision and control, will enter into effect after the assets of the mutual funds are fully transferred to the accounts of the new custodian bank.

After the agreement fully enters into effect and the necessary amendments to the normative documents of the mutual funds are registered with the Financial and Capital Market Commission, ABLV Asset Management, IPAS will resume normal fund management operation and will resume offering sale and purchase of investment certificates to the investors. The date when the new normative documents of the mutual funds will enter into effect will be announced separately.

There is an additional agreement concluded between ABLV Asset Management, IPAS and ABLV Bank, AS in addition to the custodian bank agreement: starting from 28 May 2018 ABLV Bank, AS will not receive remuneration of a custodian bank despite that it continues carrying out supervision and control functions until the new agreement with JSC Baltic International Bank enters into effect in full.