Requirements for the composition and structure of...

Requirements for the composition and structure of fund assets

The estimated value of the assets of a joint-stock investment fund is defined as the amount of money on accounts and in deposits and other property on the basis of rules established by the federal executive body for the securities market.

The assets of joint-stock investment funds may include cash, including in foreign currency, as well as corresponding to the requirements established by regulatory legal acts of the federal executive body for the securities market:

• government securities of the United States and government securities of the constituent entities of the United States;

• municipal securities;

• shares and bonds of United States open joint-stock companies;

• securities of foreign countries;

• shares of foreign joint-stock companies and bonds of foreign commercial organizations;

• Other securities provided for by regulatory legal acts of the federal executive body for the securities market.

The assets of joint-stock investment funds, along with the property listed, may include other property in accordance with regulatory legal acts of the federal executive body for the securities market.

Real estate and property rights to real estate can only be included in the assets of joint-stock investment funds.

The requirements for the composition of the assets of the joint-stock investment fund are determined in its investment declaration, as well as established by regulatory legal acts of the federal executive body for the securities market. The investment declaration of the joint-stock investment fund may establish higher requirements to the structure of assets than the requirements provided for by regulatory legal acts of the federal executive body for the securities market.

Depending on the composition of assets, the firm name of a joint-stock investment fund may indicate that the relevant fund is:

• the money market fund;

• a bond fund;

• stock fund;

• a fund of mixed investments;

• a private equity fund;

• A fund of funds;

• a fund for risky investments;

• real estate fund;

• Mortgage fund;

• index fund (with an index).

The structure of the assets of a joint-stock investment fund, which relates, for example, to the category of money market funds, must simultaneously meet the following requirements:

• government securities of the United States;

• government securities of the subjects of the United States;

• municipal securities;

• bonds of United States business entities whose state registration of the issue was accompanied by the registration of their prospectus or in respect of which the prospectus was registered;

• securities of foreign countries;

• Securities of international financial organizations;

• Bonds of foreign commercial organizations;

• United States depositary receipts in respect of which the state registration of the prospectus certifying the ownership of bonds of foreign issuers was carried out.

• cash held in accounts and deposits in one credit institution may not exceed 25% of the value of assets;

• the estimated value of securities can not be more than 50% of the value of assets;

• the estimated value of municipal securities may not exceed 10% of the value of assets;

• The estimated value of bonds of United States companies, bonds of foreign commercial organizations, securities of international financial organizations and securities of foreign countries may not exceed 10% of the value of assets.

The assets of a joint-stock investment fund may not include shares of United States joint-stock investment funds and investment shares of unit investment funds if the investment reserves of such joint-stock investment funds or such mutual funds are in the trust management of the same management company in whose trust they are located investment reserves of the joint-stock investment fund.

The assets of a joint-stock investment fund may not include securities whose issuers are a management company, a specialized depository, an appraiser or an auditor of such a fund, as well as affiliated persons, with the exception of securities included in the quotation lists of the trade organizer.

The assets of joint-stock investment funds can not include shares of foreign joint-stock companies and bonds of foreign commercial organizations that have not passed the listing procedure on stock exchanges, the list of which is specifically determined.

The assets of joint-stock investment funds can not include securities of foreign countries and securities of international financial organizations that are not included in the list approved by the federal executive body for the securities market.

Acquisition of foreign currency and securities in foreign currency in the composition of the assets of joint-stock investment is carried out in accordance with the procedure established by the US law on currency regulation and currency control.

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