1. What is a Mutual Fund (MF)?

A Mutual Fund is not a legal entity. Mutual Fund assets are composed, as per the law, by transferable securities, money market instruments and cash. These are divided pro rata to the participants based on the number of shares they possess. Those who participate to the MF assets are called Unitholders / Shareholders. Shareholders can be either physical or legal entities.

2. What are the units / shares of a Mutual Fund?

The Net Asset Value of the Mutual Fund is divided to equal value registered units / shares and to registered fractions of the unit / share. Every Unitholder / Shareholder that participates in the assets of MF, possesses a number of units / shares pro rata to the capital invested.

3. What is the Mutual Fund Management Company M.F.M.C.?

The MFMC is a Societe Anonyme Company with registered shares, which aims to establish and manage Mutual Funds. The MFMC represents judicially and extra judicially the shareholders while it is also responsible for the monitoring of the custodian with regard to his duties as defined and predicted by the Mutual Fund regulation and the Legal framework. The approval of HCMC is required for the operation of a MFMC.

4. What is the Custodian?

As per the law, the custodian can be registered in Greece or in any other country member of E.U. provided that it operates in Greece through branch. The custodian safe keeps the Mutual Funds assets, act as treasurer, co-signs the Annual and Semi-Annual reports, the Prospectus and the Mutual Funds Regulations, while it also controls the legitimacy of the manager that is the MFMC.

5. What is the Hellenic Capital Markets Commission (HCMC)?

The HCMC is a legal entity of public interest. It reports to the Ministry of National Economy and it is an independent regulatory authority. The decisions of HCMC are implemented by the regulated companies. The HCMC may impose penalty and fines to the regulated companies when they do not comply with the legal framework on their daily activity.

6. What is Mutual Fund Regulation?

The Mutual Fund regulation is jointly drafted by the custodian and the MFMC. It is filed for approval by HCMC and includes inter alia the Mutual Fund name, the kind and the category of the transferable securities which will define the Mutual Funds assets, the category of the Mutual Fund, the subscription price of the Mutual Fund at the date of its registration, the terms of subscription and redemption of shares, the financial charges on the shareholders (management and custodian fee, subscription and redemption commissions) and others. The potential Unitholder / shareholder must take into consideration the regulation prior to the proceeding prior to the purchase of shares of a Mutual Fund. Interested parties can obtain and been informed about regulation of Mutual Fund by MFMC’s website and the sale points of Mutual Funds.

7. What is the NAV of Mutual Fund?

The Net Assets Value (NAV) of Mutual Fund is the total assets invested in securities and cash, as provided by Regulation and legal framework.

The assets of the Mutual Fund are valued daily by the MFMC.

8. What is the return of Mutual Fund?

All the Mutual Funds invest their assets in transferable securities and cash as defined by the Mutual Fund regulation and legal framework. The transferable securities which constitute the Mutual Fund assets, make returns depending on their type. The returns deriving from the transferable securities and cash as well as the return due to the capital gains increase the share price. This increase is called return. The Mutual Fund calculates its return annually. For instance: on January 1st the net price of the unit / share commences at 5,00 EUR and reaches 6,00 EUR until 31st of December. This difference of 1,00 EUR is the total return of the unit / share within the year and includes all the proceeds received by the Mutual Fund.

9. How many and which prices have the units of a Mutual Fund?

The units of a Mutual Fund have three prices, the net price, the Subscription price and the Redemption price. The net Price of each share is calculated by dividing the Net Asset Value (NAV) by the number of units outstanding*

The procedure is as follows: At the end of the accounting day after the closing of markets in which M/F invests, its assets are marked to market in order for the company to determine its NAV

After the determination of the daily net asset value of the fund, the company divides the NAV of the fund by the total number of units outstanding and by this calculation the daily net price of the fund is been set

NET ASSET VALUE/ NUMBER OF SHARES outstanding = net price

Then the company adds to the net price the applicable by the prospectus subscription fee

Net price + subscription fee = subscription price

The subscription price is the price at which the shareholder can participate in the Fund

Finally the company subtracts from the net price the applicable by its prospectus redemption fee

Net price - redemption fee = redemption price

The redemption price is the price at which the shareholder redeems shares partially or in whole

* Units outstanding: The total number of units outstanding up to the previous day.