Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Harvest Stargate Version IIIEN


Published on

The First European Med Oil and Gas Fund

  • Be the first to comment

  • Be the first to like this

Harvest Stargate Version IIIEN

  1. 1. Harvest Stargate Fund Ltd Investment Manager: Harvest Financial Services Ltd, Regulated by the Cyprus Securities and Exchange Commission, License Number 021/03 –Member of the Investor Protection Fund (TAE), Harvest Stargate Fund Ltd: Registered and Regulated by the Central Bank of Cyprus As an international Collective Investment Scheme Law No 47 (1) of 1999 (ICIS). SEPTEMBER 2008- OCTOBER 2011 “ Serving the International Investor” CONTACT: Telephone + 357 22 552800 [email_address] This document is for informational purposes only. This document does not constitute an offer, an invitation to offer, or a recommendation to enter into any transaction, nor does it constitute investment advice. This material does not constitute a solicitation to buy or sell securities in any jurisdiction in which such a solicitation is not authorized or to any person to whom it is unlawful to make such a solicitation,
  2. 2. Table of Contents I. Description of the Fund, II. Attractive Features of the Fund, III. Performance of the Harvest Stargate Fund Ltd, IV. What are the Advantages of Harvest Financial Services Ltd, V. Summary / Timing,
  3. 3. Table of Contents Benefits of the Harvest Stargate Fund Ltd, Summary: A Multi-Asset Fund offering several key Advantages. <ul><li>The Benefit of Investing in International Collective Investment Funds (ICIS): </li></ul><ul><li>Given the recent volatility in stock markets worldwide, we wish to give investors an update on the benefits of holding ICIS, as part of a balanced and diversified portfolio. </li></ul><ul><li>The Harvest Stargate Fund Ltd offers individual investors access to a unique multi-asset, multi manager investment methodology usually only used by sophisticated institutional investors. The fund’s objective is to deliver returns in excess of those offered by traditional investment funds, by the careful and active allocation of the portfolio across three key asset classes, combined with the active selection of the best performing underline fund managers. The fund provides diversification-the foundation of a successful portfolio. The fund invests in three strategies each managed by a leading specialist manager. </li></ul><ul><li>Investing in just one asset class carries with it a higher degree of risk and the Harvest Stargate Fund Ltd adopts an active asset allocation policy that ensures the fund invests across a spread of asset classes that offer the best risk adjusted return. In addition, Harvest Stargate Fund Ltd and its advisors, Harvest Financial Services Ltd, aim to select the best performing funds for each asset class which are then analyzed on an ongoing basis. </li></ul>
  4. 4. Introduction The Manager <ul><li>Harvest Financial Services Ltd, is a leading investment management company, based in Nicosia Cyprus. Harvest Financial Services Ltd was established in March 2000 by Harvest Advisors Ltd, as a spin-off from Harvest Financial Group. Harvest Financial Services Ltd is regulated by the Cyprus Securities & Exchange Commission with license number 021/03. </li></ul><ul><li>-Harvest Financial Services Ltd provides a wide range of mutual funds, hedge funds and portfolio management advisory services. Its investment team has over 10 years experience in: </li></ul><ul><li>- Tailored portfolio construction- the construction and management of diversified, high quality fund portfolios, tailored to the needs of private and institutional clients. </li></ul><ul><li>- Distribution of Hedge Funds- the distribution of a wide range of fund of hedge fund products for both the institutional and retail markets. </li></ul><ul><li>Structured Products – the structuring and management of products linked to hedge funds. </li></ul><ul><li>- Traditional Investment portfolio Management – The construction and management of traditional, predominantly long / short portfolios. </li></ul>
  5. 5. Innovation Flexibility Integration Reactivity Competitively Competitive Fund Management Integrated Fund Management Harvest Financial Services Ltd Manager’s Style
  6. 6. THE IMPORTANCE OF ASSET CLASSES LOWER RISK – CONSISTENT RETURNS The Fund The most popular traditional asset classes are cash, bonds, equities, real estate and now hedge funds. Harvest Stargate Fund Ltd combines these asset classes, with the exception of cash, in order to create the next generation of multi asset Global Macro investments. The different asset classes will perform their best at different stages of a normal investment cycle. When building a portfolio, it is therefore essential that it should not only be spread between different asset classes, but should also make an allocation to the asset class that is likely to provide the best return in the following year. Whilst equities may be rising, bonds or property could be falling, and when equities fall, hedge funds could perform well. The Stargate Fund is an aggressive market neutral fund with a return objective of 8-12% annually with a standard deviation of approximately 4%-6%. It allocates capital among managers who have stated investment objective of returns in excess of 15% per annum. It is expected that the fund will have higher than average volatility but through diversification of strategies can mitigate drawdown's during bear market environments. In positive market periods, the fund should produce returns above market benchmarks.
  7. 7. HARVEST STARGATE FUND LTD INVESTMENT OBJECTIVES Capital Protection Techniques Risk Adjusted Correlation Capital Appreciation Low Correlation Capital Preservation Equities/Futures
  8. 8. Executive Summary Fund Structure Indicative Summary Terms Final Maturity <ul><li>Open Ended investments Unlimited holding period. </li></ul>Currency <ul><li>EUR or currency equivalent on the subscription date. </li></ul>Principal Protection Provider <ul><li>Some underline assets bear the principal protection of the issuer of the underline assets. The fund therefore offers soft capital protection only on selected underline assets that bare issuers guarantees. </li></ul>Form <ul><li>Shares – ICIS UNITS </li></ul>Notional <ul><li>[●] MM, minimum 5MM </li></ul>Issue Price <ul><li>100% </li></ul>Redemption Amount <ul><li>The shares will be redeemed on the NAV: </li></ul><ul><li>The Shares may be redeemed prior to that on a monthly basis after year 2 . </li></ul><ul><li>Share Price (t) – Early Redemption Premium, whereby the Early Redemption Premium is initially 4%, and then decreasing by 1% on each anniversary of the Issue Date, until reaching 0% </li></ul>Additional Investments <ul><li>Investors will be able to subscribe additional amounts in the fund on a monthly basis. </li></ul>Initial Allocation into the Underlying Fund <ul><li>The Initial Allocation of the Issuer to the Underlying Fund will be equal to 100%; thereafter the Trading Administrator will adjust the allocation between the assets of the Issuer in accordance with the Rebalancing Rules </li></ul>Investment Manager <ul><li>Harvest Financial Services Ltd - </li></ul>Transaction Fees <ul><li>Investment Manager Fees: 2.0% annual management fees on NAV and an incentive fee of 20% of annual returns in excess of 6% </li></ul>
  9. 9. <ul><li>High Variable Coupons paid each year on profits above 10% net of fees . </li></ul><ul><li>Coupons floored at 0% and Uncapped based on performance. </li></ul><ul><li>Soft Capital protection on 1/3 of the underline assets. </li></ul><ul><li>Performance linked to baskets of stocks and indexes . </li></ul>The Harvest Stargate Fund Ltd; Investment Solution: <ul><li>The Harvest Stargate Fund Solution combines two effects </li></ul><ul><li>Performance Mechanism 1/3 of the assets are locked into capital protected underline assets or real estate properties. </li></ul><ul><li>Annual coupons are calculated as follows: </li></ul><ul><li>At each yearly anniversary the level of each share is compared to its initial level. </li></ul><ul><li>The annual coupon is the positive performance of the underline asset classes. </li></ul><ul><li>Following the strong market rally of recent years the fund allows for a high absolute performance, independent from the downward or upward movements of the stock markets; </li></ul>
  10. 10. Typical Capital Guarantee Product Example of the investment Strategy: Zero Coupon +Direct Investment 1/3 Strategy <ul><li>The standard way to create capital protected notes for a variety of underlying asset types </li></ul><ul><li>The initial investment strategy of the Harvest Stargate Fund Ltd is allocated (1/3 of its assets) into or through other structured funds: </li></ul><ul><ul><li>Buying a zero coupon bond that will mature at 100 at the maturity of the transaction [cost of zero coupon bond = 75]. Buying the Underlying Fund (or an option on the Fund if such can be created) using [100% - price of zero coupon = 25] </li></ul></ul>T = 0 Maturity e.g.5- 7 years € 100 invested € 75 Price of Zero Coupon Bond € 25 Underlying Fund RISKLESS: Zero coupon Bond will mature at €100, to repay Principal in full Zero accrues to €100 Investment pays off based on interim performance of Underlying Fund RISKY: Payoff dependent on Underlying Fund Zero Coupon Bond Matures At €100 Payoff e.g. at €50 Redemption Of €100+50 <ul><li>This structure is the oldest and simplest principal protection strategy </li></ul><ul><ul><li>TOTAL RETURN OF UNDERLYING FUND: 50/25 = 200.0% </li></ul></ul><ul><ul><li>TOTAL RETURN OF INVESTMENT: 150/100 = 150.0% </li></ul></ul>
  11. 11. Fund Structure 1/3 of the fund’s assets are investment into protected asset classes with 100% Initial Participation SPV Put Option at Guaranteed Amount Investment € 100 Fund Units Investor Hellenic Bank PLC Administrator Zero Coupon Bond (Riskless) Underlying Fund (Issuer) ISSUER at Maturity Part 1: Dynamic Rebalancing € 100 initially € 0 initially Part 2: Put Option HFS as the fund manager Determines the proportion of Assets invested in the Underlying Fund or the 0-Coupon Bond <ul><li>Capital protection is composed of 2 parts : </li></ul><ul><ul><li>A dynamic rebalancing between an investment into the Underlying Fund and a zero coupon bond. </li></ul></ul><ul><ul><ul><li>Objective: to ensure that funds are invested in the Underlying Fund for the maximum time possible </li></ul></ul></ul><ul><ul><ul><li>Through the fund structure it is possible to capture 100% of the performance of the Underlying Fund </li></ul></ul></ul><ul><ul><li>An unconditional put at 100% at maturity </li></ul></ul><ul><ul><ul><li>To ensure full repayment of capital, in case the dynamic rebalancing is insufficient </li></ul></ul></ul>
  12. 12. Investing through the Harvest Stargate Fund Ltd A balanced strategy with low risk way to access high returns <ul><li>Investing in the fund’s shares allows the investor: </li></ul><ul><ul><li>Exposure to the Harvest Financial Services Ltd investment strategy with high potential returns. </li></ul></ul><ul><ul><li>Asset allocation into different asset classes. </li></ul></ul><ul><li>In addition, fund flexibility allows for: </li></ul><ul><ul><li>Monitoring performance Monthly </li></ul></ul><ul><ul><li>Receiving coupons for over 10% performance in new shares or cash </li></ul></ul>
  13. 13. Successful Investment Strategy <ul><li>The Harvest Stargate Fund Ltd, offers individual investors access to unique multi-asset, multi manager investment strategy usually only used by sophisticated institutional investors and hedge fund managers. The principal questions faced by any private investor today are: how to allocate their investable funds between the various asset classes available; how would this asset allocation should be regularly reviewed, and; how they can be certain that they’re in the best possible funds run by the best possible fund managers. The Harvest Stargate fund’s objective is to deliver returns in excess of those offered by traditional investment funds, by the careful and active allocation of the portfolio across the five key asset classes-bonds, equities, property, capital protected funds and commodities-combined with the active selection of the best performing underlying fund managers. </li></ul><ul><li>Primary Fund strategy focused on undervalued equities in Europe and US either directly or through selected highly rated mutual funds. Investments in the CY and GR markets will take an opportunistic approach based on fundamental catalysts that will yield capital gains for the fund. </li></ul><ul><li>Secondary strategy overlaying portfolio focused on different structured products with capital protection at maturity issued by the World’s leading banks. The addition of capital protected notes as the 1/3 strategy yields stability and earns possible coupons for the fund. </li></ul><ul><li>Tertiary strategy overlaying portfolio focused on currency management and occasional non-equity opportunities such as bonds, forex, commodities and real estate funds and property assets.1/3 of the Funds assets are allocated into this dynamic strategy which offers stability and growth. </li></ul>Global Macro/Real Estate Capital Protected Funds Equity Long/Short
  14. 14. Experienced and Accessible Investment Manager <ul><li>Founded in Cyprus in 1998 (EPEY since 2003) </li></ul><ul><ul><li>Harvest Financial Services Limited (“HFS”) is a Cyprus based fund management group, providing discretionary portfolio management services to high net worth individuals, institutions and mutual funds both in Cyprus and abroad ( ) </li></ul></ul><ul><li>Head Office in Nicosia </li></ul><ul><ul><li>Key management and staff nearby and available to investors to answers questions regarding investment strategy, performance, Harvest Stargate Fund Ltd mechanics and administration. </li></ul></ul><ul><li>Regulated by the Cyprus Securities and Exchange Commission License Number 021/03 </li></ul><ul><li>Affiliated with some of the World’s most prestigious Product and investment service Providers </li></ul>
  15. 15. The Fund’s Asset Allocation Process Financial Instrument’s Futures/Options Equities ENERGY Real Estate Structured Products Hedge Funds GLOBAL DIVERSIFICATION Fund’s Underline Strategies
  17. 17. Primary Strategy: Equities Long / Short (1/3) Rule Investment objective and underlying Strategies <ul><li>Primary Strategy:/ FOCUS ON ENERGY </li></ul><ul><li>The First and core strategy seeks to buy undervalued equities either on an individual or sector basis and hold them for capital appreciation and income for the medium term. The Fund will engage models prior in investing in speculative investments and simulate possible return vs. risk prior of entering in such transactions. The Harvest Stargate Fund Ltd will mirror as one of its key strategies the Standard & Poors Diversified Trends Indicator (S&P DTI) as an investable long/short strategy that can benefit from trends (in either direction) in the Global Futures Markets. Bloomberg code (SPDTP) </li></ul><ul><li>The strategy also seeks to identify major changes of direction in key markets through independent analysis of relevant macro-economic factors, trend developments and investor sentiment. Harvest seeks to vary overall market exposure accordingly, either through further allocations/reductions to existing holdings or investment/divestments in market heavy weights. The strategy does not aim at a particular geographical exposure but rather is driven by a sector approach. Historically, Europe and US have provided the main holdings for the strategy. </li></ul>WIDER INVESTMENT OPPORTUNITIES Investment Process
  18. 18. MED ENERGY Primary Strategy: Equities Long / Short (1/3) Rule Investment objective and underlying Strategies <ul><li>GLOBAL MACRO PRIMARY STRATEGY 30-60% Weight of Portfolio (FOCUS ON MED ENERGY) </li></ul><ul><li>Energy Sector Waiting for the Oil (or Not)? </li></ul><ul><li>Harvest Stargate Fund Ltd, will evaluate opportunities for investments in the East Mediterranean Region and in particular: </li></ul><ul><li>Delek Energy, Delek Drilling and Avner, Nobel Energy, Lukoil, initiating coverage on the fund diversification policy. Triple digit upside potential of an oil discovery. Symbols: DELKG.TA, AVNRP.TA, DEDRP.TA, DLEN.TA, NBL. NYSE, LUKOIL. DR (CUSIP 677862104), MICEX (Moscow), Gazpromp OGZPY. </li></ul><ul><li>The value of the Levithan, Tamar, and the Cyprus Aphrodite Reserves can be derived from two sources: The value of the natural gas reserves and the value of the oil potential. The current share prices do not reflect value of oil potential. Ratio share price partially reflects an oil discovery, highest upside potential from an oil discovery. Levithan oil results likely in early 2012. </li></ul>WIDER INVESTMENT OPPORTUNITIES Energy Sector investment Process
  19. 19. Secondary and Tertiary Strategies <ul><li>Secondary Strategy : Capital Protected Notes / Structured Products </li></ul><ul><li>Structured Products are periodically employed to improve returns by: </li></ul><ul><ul><li>Hedging the portfolio against downside market moves </li></ul></ul><ul><ul><li>Exploit market volatility and time premiums during periods of range trading </li></ul></ul><ul><ul><li>Protect Capital at Maturity and reduce market risk and volatility. </li></ul></ul><ul><ul><li>Benefit from Current income and Coupon payments. </li></ul></ul><ul><ul><li>Benefit from Unique strategies in the Forex markets. </li></ul></ul><ul><li>Third Strategy : Global Macro / Real Estate Assets </li></ul><ul><li>The strategy seeks to optimize US dollar returns by hedging its non- USD holdings from time to time in other major currencies. Harvest will periodically take speculative currency or other non-equity positions when analysis strongly indicates an opportunity. Harvest Stargate Fund Ltd will invest in real estate assets in the South East Europe to achieve superior absolute returns and benefit from pricing inefficiencies in real estate properties. </li></ul><ul><li>A broad Spread of asset types, strategies and managers : The fund provides a further significant degree of diversity by investing in an underlying portfolio which combines the strategy and expertise of three investment managers and strategies, who themselves diversify their investments among an even greater number of assets, strategies and other specialist fund managers. Investors can access this level of diversity through investment in a single fund, with the significant advantage of straightforward administration. </li></ul>BALANCED PORTFOLIO
  20. 20. Successful Investment Strategy Harvest Stargate Fund Ltd 4-Year Historical Returns <ul><li>The three component strategies: </li></ul><ul><ul><li>Have low correlation with each other </li></ul></ul><ul><ul><li>Are all designed to generate positive returns </li></ul></ul><ul><ul><li>Do so in different market environments </li></ul></ul>
  21. 21. Successful Investment Strategy Real Estate Focus Countries (Portfolio Focus Strategy) Focus Countries Bulgaria Check Republic Romania Serbia &Montenegro Croatia Ukraine Greece Cyprus THE UNDERLYING PORTFOLIO COMPRISES A RANGE OF INVESTMENTS USING DIFFERENT STRATEGIES AND INVESTING IN DIFFERENT ASSET CLASSES
  22. 22. Country Data- Real Estate Focus Countries 1/3 Strategy Source: CIA Fact book
  23. 23. Comparative Figures-Investment opportunity? KEY FACTS Market Average Prime Rent (EUR/sqm/month) Sales Price (EUR/sqm) Sofia 12.0 1,100 Bucharest 19.0 2,000 Belgrade 19.0 N/A Budapest 16.0 2,500 Istanbul 12.0 1,400 Prague 17.5 3,500 Warsaw 18.0 3,000 Source: Market Research
  24. 24. Transaction Costs Summary Source: KPMG & Market Research DIVERSIFICATION
  25. 25. Why Invest Through a the Harvest Stargate Fund Ltd <ul><li>Greater diversification among asset Classes. </li></ul><ul><ul><li>Professional Investment Management Process. </li></ul></ul><ul><ul><li>Geographical exposure & Diversification. </li></ul></ul><ul><ul><li>Low Entry and Management Fees. </li></ul></ul><ul><ul><li>Access to Institutional investment opportunities and market intelligence. </li></ul></ul><ul><li>More resources available for: </li></ul><ul><ul><li>Research and market intelligence </li></ul></ul><ul><ul><li>Reduction of unsystematic risks </li></ul></ul><ul><ul><li>Thorough project due diligence </li></ul></ul><ul><li>Dedicated management team with a hands on approach. </li></ul><ul><li>Professionally structured product providing for safekeeping of assets </li></ul><ul><li>Strict investment process – in depth due diligence. </li></ul><ul><li>A network of professionals working to maximize your </li></ul><ul><li>returns and minimize your risks. </li></ul>PERFORMANCE
  26. 26. Risk Statements LIMITED OFFER Investment Horizon: The fund has a minimum holding period of 2 years with unlimited duration. Investors must maintain capital for this period. Non-Reliance on Historic Returns: Past performance does not guarantee future performance; investment in the fund should be based upon a complete assessment of their terms. Limitations of Simulated Returns: Certain presentations and back-testing or other statistical analysis materials that may have been provided in connection with explanations of the mechanics and/or potential returns of the Notes use pro forma analysis and hypothetical circumstances to estimate how the Reference Portfolio may have performed prior to its actual existence. Harvest provides no assurance or guarantee that the Notes will operate or would have operated in the past in a manner consistent with those materials. As such, any historical returns projected in such material, or any hypothetical simulations based on this analysis, provided in relation to the fund may not reflect the performance of, and are no guarantee or assurance in respect of the performance or returns of, the fund. Non-Linear Returns: Absent the occurrence of a Knock Out, the return on the Notes will be based on the performance of the Reference Portfolio over time. As such it is not possible to predict the return on the fund simply by reference to the initial and final values of the Reference Portfolio. The application of the Fund’s Mechanics may result in an opportunity cost when the return on the fund is compared to either a direct investment in the Reference Portfolio or as the underline assets principal protected investment where the exposure to the Reference Portfolio is achieved through a conventional call option issued by the product providers. Clean Up Event: If there is a significant reduction in either the value of the Reference Portfolio or, shortly after issuance of the fund, a rapid decline in interest rates, a Clean Up Event may occur. Under both such circumstances, the return on the fund will cease to offer any potential capital gain as a function of the future performance of the Underlying Fund and will effectively become that of the remaining asset classes. Credit Risk: The value of the fund may decline dramatically based on market conditions. Investors understand that there are risks involved and capital may decline due to market conditions and valuations. Past performance is not guaranteed for future returns. Disclosure of Investor Identity: It may be required for purposes of the Investment Manager’s compliance procedures to disclose to the name of the initial investor in the fund.
  27. 27. Important Legal Note <ul><li>The material provided herein is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any securities relating to any of the products referenced herein, notwithstanding that any such securities may be currently being offered to others. Any such offering will be made only in accordance with the terms and conditions set forth in the Offering Memorandum pertaining to such fund. Alternative investments such as hedge funds and ICIS are subject to less regulation than other types of pooled investment vehicles, may be illiquid and can involve a significant use of leverage, making them substantially riskier than the other investments, including any products which may be shown as comparison herein. Prior to investing, investors are strongly urged to review carefully the Offering Memorandum (including the risk considerations described therein), and all related fund documents, to ask such additional questions of the Investment Manager as they deem appropriate, and to discuss any prospective investment in the Fund with their legal and tax advisers in order to make an independent determination of the suitability and consequences of an investment. </li></ul><ul><li>This presentation does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it would be unlawful to make such offer or solicitation. It is the responsibility of any person or persons in possession of this material to inform themselves of and to observe all applicable laws and regulations of any relevant jurisdiction. Prospective investors should inform themselves and take appropriate advice as to any applicable legal requirements and any applicable taxation and exchange control regulations in the countries of their citizenship, residence or domicile which might be relevant to the subscription, purchase, holding, exchange, redemption or disposal of any investments. </li></ul><ul><li>Investment in ICIS Funds are suitable only for sophisticated investors for whom an investment in such fund does not constitute a complete investment program and who fully understand, and are willing to assume and understand, the risks involved. While the given material is subject to change and, although based upon information which we consider reliable, it is not guaranteed as to accuracy or completeness. No person has been authorized to give any information or to make any representation, warranty, statement or assurance not contained in the Offering Memorandum and, if given or made, such other information or representation, warranty, statement or assurance may not be relied upon. </li></ul><ul><li>Past performance is not a guide to future performance and the value of investments and the income derived from those investments can go down as well as up. Future returns are not guaranteed and a loss of principal may occur. Harvest Financial Services Ltd makes no warranty or representation that the security and or recommendation/the fund made are appropriate for all recipients and investors. </li></ul><ul><li>Opinions expressed are current opinions as of the date appearing in this material only. No part of this material may be i) copied, photocopied or duplicated in any form, by any means; or ii) redistributed without Harvest Financial Services Ltd prior written consent. </li></ul>
  28. 28. Service Providers <ul><li>Board of Directors </li></ul><ul><li>Advisory Board </li></ul><ul><li>Investment Manager – Harvest Financial Services Ltd </li></ul><ul><li>Administrator –Hellenic Bank Public Ltd </li></ul><ul><li>Custodian - Hellenic Bank Public Ltd </li></ul><ul><li>Auditors – PKP Professional Services Ltd </li></ul><ul><li>Legal Advisor – Drakos & Efthymiou </li></ul><ul><li>National Bank of Greece Cyprus Ltd </li></ul><ul><li>Hellenic Bank Public Ltd </li></ul><ul><li>Wall Street Global LLC </li></ul>professionals
  29. 29. IMPORTANT INFORMATION “ The Central Bank of Cyprus shall not be liable by virtue of its recognition of the ICIS or by reason of its exercise of the functions conferred on it by the International Collective Investment Schemes Law. Recognition of the ICIS does not constitute a warranty by the Bank as to the creditworthiness or financial standing of the various parties to the ICIS”. Supervision of ICIS In accordance with section 3 of the Law, the Central Bank of Cyprus is the regulatory and supervisory authority in the Republic of Cyprus for ICIS, their managers and trustees. An ICIS must sell, redeem or repurchase its units at the request of unit holders, in accordance with its constitutional documentation. Units may not be issued as partly paid and may not be sold unless the equivalent of the net issue price is paid. Basic Rules for the calculation of sale, redemption or repurchase price can be found in “Regulations on the valuation of the property of an ICIS” . Taxation Any gains or profits generated by an ICIS of any type, including a unit trust or an investment limited partnership, are subject to an effective tax rate of 0,425%, while no further tax is imposed on any dividends or other distributions made by an ICIS to its unit holders. The income of managers and trustees, if not permanent residents of the Republic, which is generated from services they offer to ICIS is exempt from income tax.