Open-ended benchmark mutual investment fund Finam MICEX Index (Trust Management Rules were registered with the Russian Federal Securities Service under entry #0315-75341204 on January 26, 2005) invests funds in the most liquid stocks of Russian companies which make up the MICEX Index. Fund members become owners of a wide range of securities which represent different industrial sectors. This helps investors avoid serious losses in the event of a decline in one or several stocks. In this case, the amount of profits and losses depends on overall market performance. Such a policy eliminates the possibility that stock management policy will be impacted by the human factor and that trading strategies are pegged to the performance of specific concerns. This fund offers highest returns when the equity market is on the rise. Open-Ended Benchmark Mutual Fund Finam MICEX Index Type: open-ended Formation period: from February 14, 2005 to April 4, 2003 Purpose: long-term investments in securities Minimum investment amount: Rub 20,000 ($714.28), with subsequent installments of Rub 1,000 ($35.71) Investment targets: securities (stocks) which are tracked by the MICEX Index Investor expenses: remuneration paid to the Management Company equals 2.7% (incl. VAT) of the annual average net asset value. Remuneration paid to other participants of asset management activities is no higher than 1.5% (incl. VAT) of the annual average net asset value. The maximum amount of other expenses reimbursed at the expense of the assets which make up the fund is equal to 0.6% (incl. VAT) of the annual average net asset value. Markup in the event of acquisition of investment stakes is as follows: 1 (one) per cent (VAT included) of the estimated price of the investment stake in the event that the amount of cash paid for investment stakes is below or equal to Rub 500,000 (Five hundred thousand rubles). 0.5 (zero point five) per cent (VAT included) of the of the estimated price of the investment stake in the event that the amount of cash paid for investment stakes exceeds Rub 500,000 (five hundred thousand rubles).
In the event that an application to acquire stakes is submitted to the fund's agents – Closed Joint Stock Company Finam bank and Closed Joint Stock Company Finam Investment Company no markup is charged. Discount in the event of redemption of investment stakes is as follows 1.5 (one point five) per cent (VAT included) of the estimated price of the investment stake in the event that investment stakes are redeemed within 180 (one hundred and eighty) days from the date when an entry was made about acquisition of the said investment stakes in the shareholder register of investment stakes. 1 (one) per cent (VAT included) in the event that investment stakes are redeemed within the period from 180 (one hundred and eighty) days to 365 (three hundred and sixty five) days from the date when an entry was made about acquisition of the said investment stakes in the shareholder register of investment stakes. 0.5 (zero point five) per cent (VAT included) in the event that investment stakes are redeemed after 365 (three hundred and sixty five) days have elapsed from the date when an entry was made about acquisition of the said investment stakes in the shareholder register of investment stakes.
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