CIF, UIF, AMC – the abbreviations are the names of investment funds and companies, they are great opportunities for developing business, receiving income, optimizing tax burden and assets protection.
According to the Law of Ukraine “On the Institute of Special Investment” dated 05.07.2012, in Ukraine there are two types of investment funds for accumulating a wealth of investors:
Also, the funds are classified according to the order of publicity, terms of investment and direct investment.
The professional management of the assets of the funds is done by the investors of the Asset Management Company (AMC). Nowadays, thanks to the Ukrainian Association for Investment Business, there are 300 companies in Ukraine who are responsible for collective and individual trust management. Cooperation with the Investment Fund from the AMC is done on legal ambushes, and defined, in the first place, by the type of the Institute of Mutual Investments.
A corporate investment fund operates in the form of an open joint-stock company: a legal entity that has supervisory bodies, emits assets and interacts with AMC on the basis of an asset management agreement.
The formation of a CIF occurs exclusively through the establishment (mergers, divisions, spin-offs, mergers, transformations are not allowed), in order for investors to carry out only joint investment activities. Procedure for creating a CIF:
Features of cooperation of corporate investment fund with AMC:
All the property of the corporate fund is owned by CIF as a legal entity, and some participating investors own its property in shares proportional to the number of their shares.
A unit investment fund is not a legal entity and has no supervisory bodies. It is created by AMC, and the participants own the property of the mutual fund on the rights of joint partial ownership. The issuer of the fund’s investment certificates is the AMC, which determines and implements the investment policy.
Peculiarities of functioning of a separate UIF are prescribed in the regulations, which establish:
In accordance with the requirements of the law, the minimum amount of mutual fund assets is 1250 minimum wages, but the application of this requirement does not begin immediately, but six months after the date of registration of the issue of investment certificates of the fund. Thus, investors in Ukraine can choose an investment strategy depending on their intentions and desire to personally influence the investment policy of the fund.