1. What is JII?

    Joint Investment Institutions (JII) are investment funds whose sole activity is investing in various sectors of the economy in order to obtain and distribute profits among investors.

    JII is a tool with which investors from investors are attracted to implement investment projects, implement business ideas, raise funds to develop a functioning business.

  2. What is the asset structure of JII?

    JII assets may consist of:

    Cash, including in foreign currency, on current and deposit accounts opened with banking institutions.

    Banking metals.

    Real estate: land, real estate, residential and non-residential buildings.

    Corporate rights: shares in the authorized capital of Ukrainian and foreign legal entities.

    Securities including securities of foreign states and foreign legal entities, stocks, bonds, commodity securities, certificates of real estate funds.

    Debt obligations (for venture investment funds) can be drawn up with bills of exchange, pledges, contracts for the assignment of rights of claim, loans and in any other way not prohibited by the current legislation of Ukraine.

  3. What is a CIF and its governing bodies?

    Corporate Investment Fund (hereinafter - CIF, Corporate Fund) - a legal entity that is created in the form of a joint stock company and carries out exclusively joint investment activities.

    This entity is created in the form of a joint stock company, but it should be noted that the Law of Ukraine “On Joint Stock Companies” does not apply to the CIF. Corporate funds are created and operate in accordance with the Law of Ukraine “On Joint Investment Institutions”.

    CIF is an issuer of shares.

    The management bodies of the CIF are the General Meeting and the Supervisory Board.

    The creation of the Supervisory Board at CIF helps to monitor the activities of the asset management company. At the same time, members of the Supervisory Board are elected by the General Meeting, which allows participants to appoint their representatives to the Supervisory Board. The competence of the General Meeting includes the solution of such issues as: election of members of the Supervisory Board, approval of the Charter of the CIF, approval of the annual report of the CIF, etc.

    The competence of the Supervisory Board includes the solution of such issues as: making decisions on holding regular and extraordinary general meetings, except for convening KIF participants by an extraordinary general meeting; approval of the agenda of the general meeting, adoption of a decision on the date of their holding and on the inclusion of proposals on the agenda, except for the convening by the CIF participants of an extraordinary general meeting; approval of contracts for the assets of the investment fund concluded by the asset management company for an amount exceeding the minimum cost established by the charter or regulation.

  4. How do AMC and CIF interact?

    Assets management of a CIF on the basis of an agreement on asset management of a corporate investment fund is carried out by an asset management company (AMC).

    Asset management is a professional activity in the stock market. Legislation establishes certain requirements regarding the activities of asset management companies. This applies to the size of the authorized capital, premises, number and qualifications of the company's specialists, requirements for the head and accountant of the company.

    When conducting asset management activities of an institution of joint investment, an asset management company is not entitled to: acquire property and securities of types not provided for in the investment declaration of the institution of joint investment from assets of the institution of joint investment; carry out for own funds operations with the assets of the joint investment institution, which it manages; gratuitously alienate the assets of the institution of joint investment and so on.

    The asset management company bears property liability for violation of the requirements of the legislation, regulations, prospectus for the issuance of securities of the joint investment institution, investment declaration, and asset management agreement of the corporate fund.