Resuming the transactions with the investment certificates

Integrum Asset Management IPAS (previous name — ABLV Asset Management, IPAS, hereinafter — the Company) has completed the transfer of the assets of the mutual funds to the accounts of the new custodian bank and will completely resume the transactions with the investment certificates on 04.01.2022. With the change of the custodian bank and resuming the transactions with the investment certificates, the Company has fully ensured the necessary conditions on continuation of the operations of the mutual funds in accordance to the operating plan that has been developed under the supervision of the Financial and Capital Markets Commission.

Resuming the transactions with the investment certificates of the mutual funds managed by the Company (hereinafter – investment certificates) implies that the persons that own the investment certificates and where no restrictions in accordance to the normative acts have been identified as a result of the investor compliance review (hereinafter – the investors) based on their own discretion and without restrictions can execute transactions with the investment certificates, including submission of the redemption applications.

In addition, the Company would like to note that despite the complicated and time-consuming procedures on the change of the custodian bank, the Company has at all times and with the highest responsibility towards the interests of the investors continued the management of the assets of the mutual funds of the investors that has resulted in a material capital value appreciation in long term. After the completion of the change of the custodian bank, the management of all the assets of mutual funds continues without any restrictions in accordance with the investment strategy documented in the prospectus of the respective fund. Therefore, the investors are welcome to continue the collaboration with the Company regarding the management of the invested capital or at their own discretion to perform the transactions with the investment certificates.

The results of the operations of the mutual funds1

All the mutual funds managed by the Company have provided for positive capital value appreciation over the long term and since the inception. For example, during the period, where the transactions have been suspended and up to 21.12.2021, the average annualized return on the investment certificates has been in the range from +0.4% for a conservative strategy EUR corporate bond fund up to +57.9% for USD stock market fund after deduction of all applicable commissions by the Company. More detailed information regarding the results of the operations of the mutual funds can be found in the following link. The comparison of the results of the mutual funds with other mutual funds can be found in the Nasdaq CSD Baltic Fund Center.

Report on holding period return for all mutual funds from the date of suspending the transactions up to 21.12.2021:

ISIN

Asset Value

14.02.2018

Asset Value

21.12.2021

Return

%

Government Bond Funds

ABLV Emerging Markets USD Bond Fund

LV0000400315

16.85

18.87

+11.93%

ABLV Emerging Markets EUR Bond Fund

LV0000400349

16.10

16.82

+4.52%

Corporate Bond Funds

ABLV High Yield CIS USD Bond Fund

LV0000400331

17.36

19.53

+12.51%

ABLV Global Corporate USD Bond Fund

LV0000400802

11.19

12.66

+13.17%

ABLV European Corporate EUR Bond Fund

LV0000400810

12.08

12.13

+0.38%

ABLV Emerging Markets Corporate USD Bond Fund

LV0000400935

11.72

13.23

+12.87%

Total Return Fund

ABLV Multi-Asset Total Return USD Fund

LV0000400919

10.31

12.56

+21.84%

Equity Funds

ABLV Global USD Stock Index Fund

LV0000400323

11.89

16.38

+37.71%

ABLV Global EUR Stock Index Fund

LV0000400356

9.90

12.41

+25.41%

ABLV US Industry USD Equity Fund

LV0000400836

12.70

20.05

+57.94%

ABLV European Industry EUR Equity Fund

LV0000400844

10.91

13.82

+26.70%

Submission of redemption request

If deciding to make a redemption request, the investor is required to submit the following documents to the Company:

  • “Application for redemption of investment certificates of mutual funds”;
  • Financial instrument account statement or equivalent document (e.g. a formal notice issued by the respective financial institution) attesting investor’s ownership of the investment certificates – required only if the account indicated in the redemption application is different from the information that has been provided during the investor compliance review to the Company. Requirements for the document can be found here.

The above-mentioned documents can be submitted in one of the following ways:

  • Using the remote access system Online Office maintained by the Company;
  • In person in the Office of the Company in Riga, Elizabetes street 23.

Access rights to the remote system Online Office and the instruction on the registration will be ensured to all of the investors where no restrictions in accordance to the normative acts have been identified as a result of the investor compliance review. System Online Office is a remote access tool that has been developed to provide a convenient way to exchange information between the Company and the investor, including to receive and submit request templates and other documents. In order to obtain the access rights to the system Online Office, the investors are not required to perform any tasks. The access rights and registration invitation will be provided to all investors after the compliance review of the investor has been completed to the contact details already specified in the Investor’s Questionnaire.

In order to obtain more information regarding the access to the remote system or the order of the submission of the redemption application, please contact the Company during the working hours on the phone number +371 67002775 or by email investors@integrum.lv.

The Company emphasizes that the important precondition for the Company to continue collaboration with the investor, including to accept for execution the redemption application on investment certificates, is compliance review of the investors that has been established with the purpose to comply with the requirements of legal acts aimed at prevention of risks related to money laundering, terrorism and proliferation financing, as well as sanction violations. In case the investor has not yet provided the necessary information to initiate the investor compliance review, we invite to contact the Company and provide the necessary information and documents. Investors, whose investment certificates of mutual funds are safekept in ABLV Bank Luxembourg, S.A. in judicial liquidation, have to contact ABLV Bank Luxembourg S.A. in judicial liquidation and provide their consent for disclosing all necessary information and documents requested in the investor review process to the Company. After receiving the consent of the investor, ABLV Bank Luxembourg, S.A. in judicial liquidation will ensure the disclosing of the information and documents requested in the investor review process to the Company.

The order of the processing the redemption applications

Processing of the “Application for redemption of investment certificates of mutual funds” will be performed in the following order:

  • Day of receiving the application by the Company (T=0): the investor submits to the Company the correctly filled “Application for redemption of investment certificates of mutual fund”. If the Company has received the application by 17:00 (Riga time) during a working day the latest, then such application is considered as received in the submission date. However, if the Company has received the application after 17:00 (Riga time) then such application is considered as received in the following working day;
  • Third working day (T+3): the Company informs the investor regarding the processing of the application and regarding the details of the planned transaction:
    - the redemption price of the investment certificates;
    - the currency value that corresponds to the quantity of the investment certificates to be redeemed;
    - trade date (typically T+3) and Settlement date (typically T+6);
    - other information as required.

    The above information the Company provides to the preferred contact information source indicated by the investor in the application.
  • If the investor holds the investment certificates in the securities account with Signet Bank AS then the submission of the “Application for redemption of investment certificates of mutual funds” is considered also as the order on the sale of the financial instrument. No other actions are required to be performed by the investor.
  • If the investor holds the investment certificates in the securities account with another credit institution or brokerage company, then the investor is required to submit delivery versus payment order (DVP or another type of order that ensures DVP settlement) in accordance to the details specified by the Company regarding the planned transaction. In addition, the investor is required to inform his/her financial institution that the financial institution is required to submit the respective order to the depositary Nasdaq CSD SE regarding the delivery of the investment certificates to the custodian bank of the investment fund Signet Bank AS against the payment not later than the previous working day 15:00 (Riga time) before the Settlement day
  • Settlement day:
    - If the investment certificates owned by the investor in the amount as indicated in the application and within the time as specified above are delivered to Signet Bank AS as a custodian bank, the amount of the investment certificates to be redeemed are redeemed and the respective amount of funds that equal the currency value of the investment certificates is transferred to the financial institution. The financial institution transfers the respective amount of funds to the account of the investor opened in the financial institution in accordance to the general terms of the services.
    - If the investment certificates owned by the investor in the amount as indicated in the application and within the time as specified above are not delivered to Signet Bank AS as a custodian bank, the “Application for redemption of investment certificates of mutual funds” is considered invalid and is therefore cancelled.
  • The following day after the Settlement day: the Company provides, using the preferred contact information source indicated by the investor, a trade confirmation to the investor or the cancellation and the reason for the cancellation.

Detailed procedure regarding the processing of the applications is available in the ABLV funds’ prospectus.

Commissions on transactions with investment certificates

The Company does not apply any commission fee on the transactions with the investment certificates, including redemption transactions. However, the financial institution of the investor may apply the commission fee on the transaction in accordance with the respective terms of services of the financial institution.

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1 Historical return does not guarantee a similar return in the future. This material is of informative purpose and it may not be considered as the offer or recommendation to buy or sell the investment certificates of the mentioned mutual funds.