Open-End Investment Fund KB Publikum – Balanced

The profile of the fund investor’s
According to the legal regulation, the owner’s of fund share documents can be domestic and foreign institutional and individual investors who are eligible for investing in this type of vehicle. The only restriction is the minimum amount of initial capital that needs to be committed.

The fund investment strategy and the selection of the financial instruments suggest that this should be regarded as medium-term investment with clearly defined investment horizon. The fund is intended for investors how want to commit their capital for a period between 2 or 3 years (recommended investment horizon).

Investment policy and objective
The Company’s primary objective is investing the collected capital in financial markets for the purpose of achieving adequate returns for the Fund’s investors, while at the same time strictly following the imposed investment restrictions, as well as the needs for liquidity and safety of the invested assets.

The selection strategy of financial instruments, which will be a building block of Fund’s portfolio, carries out medium level of risk that is higher than the risk associated with money market funds and fixed-income (bond) funds, while at the same time it is lower than the risk associated with equity funds.

The Company will invest the Fund’s assets in the following instruments:

ASSET CLASS А
Investment in shares issued by entities from the Republic of Macedonia, Croatia, Serbia, Montenegro, Albania, Bosnia and Herzegovina, Ukraine, Russian Federation, Brazil, India and China;

Investment in shares issued by entities from countries members of the European Union, CEFTA and OECD.

ASSET CLASS B
Investment in Fixed income securities issued by entities from the Republic of Macedonia, Croatia, Serbia, Montenegro, Albania, Bosnia and Herzegovina;

Investment in Fixed income securities issued by entities from countries members of the European Union, CEFTA and OECD.

Short-term debt securities issued by entities from the Republic of Macedonia, Croatia, Serbia, Montenegro, Albania, Bosnia and Herzegovina, European Union, CEFTA and OECD.

Investments in debt securities issued by Republic of Macedonia, member countries of European Union, CEFTA and OECD can be over 35% of the Fund’s assets.

ASSET CLASS C
Investment in deposits with banks in Republic of Macedonia;

Other money market instruments which are traded on organized markets, issued by entities from the Republic of Macedonia, as well as counties members of the European Union, CEFTA and OECD.

ASSET CLASS D
Investment in other open-end investment funds which are mainly investing in shares issued by entities from Southeast Europe, Ukraine, European Union, CEFTA, OECD, Brazil, China, India, Russian Federation, under condition that the management fee is less than 2,5%.

Investment in other open-end investment funds which are mainly investing in debt securities issued by entities from Southeast Europe, Ukraine, European Union, CEFTA, OECD, Brazil, China, India, and Russian Federation, under condition that the management fee is less than 2,5%.

Targeted Fund’s portfolio structure

Payment

The payment needs to the account on Open-end investment fund KB Publikum-Balansiran in Komercijalna Banka AD Skopje acc. no. 300000002915662.

Minimal amount of initial investment
- 1.000,00 MKD

Management fee
The Company is charging annual management fee in amount of 2,5% of the Fund’s net assets value.

Custody bank fee
The Company, from the Fund’s assets, pays annual fee to the Custody bank based on the value of Fund’s asset, by using the following rates:

From 500.000.000,00 MKD  0,35%

From 500.000.001,00 – 1.000.000.000,00 MKD  0,30%

From 1.000.000.001,00 MKD 0,25%

Above 1.800.000.001,00 MKD  0,20%

Expenses for issuing share document
The fee for issuing share documents is calculated on the amount of the payment, by using the following rates:

Up to 100.000,00 MKD  3,5%

From 100.001,00 MKD up to 500.000,00 MKD 3,0%

From 500.001,00 MKD up to 1.000.000,00 MKD 2,5%

From 1.000.001,00 MKD up to 3.000.000,00 MKD 2,0%

From 3.000.001,00 MKD up to 5.000.000,00 MKD 1,0%

Above 5.000.001,00 MKD 0,5%

Expenses for buyout and payment of share documents
An expense for buyout and payment of Fund’s share documents (or exit fee) will be charged if redemption is made within three (3) years from the moment when the Fund’s share documents were bought.

An expense for buyout and payment of Fund’s share documents is calculated on the entire amount of payment, by using the following rates:

Up to 1.000.000,00 MKD  1,5%

From 1.000.001,00 MKD to 5.000.000,00 MKD 1,0%

Above 5.000.001,00 MKD 0,5%