Option 1

How to buy fund shares?

Purchasing shares of a mutual fund is not easy - it is very easy. The procedure of purchasing fund shares is the same as in case of purchasing any other securities. There are no restrictions as to the persons able to become a mutual fund investor - both private persons and corporate entities may buy mutual fund shares.

In order to execute the transaction you need to:

1. Open a current account and a securities account with any Latvian commercial bank that is a member of Latvian Central Depository.
2. Fill in the Fund shares purchase application at one of the fund shares official distributors (Baltikums Asset Management, Komercbanka Baltikums or Latvijas Unibanka). The application is to be in four copies. Two copies of the application are for the official distributor of the fund shares. One copy is left at investor's disposal. Finally, the fourth copy investor has to hand in to the bank - his securities account custodian.
3. When completing the fund shares purchase applications Investor also has to ensure that the relevant sum for the transaction with the Fund shares (including all the fees applicable) is present in his current account with the bank where his securities account is held.
4. Investor's securities account holder on the basis of the fund shares purchase application copy then performs the DVP transaction (delivery versus payment).
5. On receiving the fund shares purchase application, Baltikums Asset Management transfers an order for a new shares issue and a DVP transaction with investor's custodian bank to its Custodian bank.
6. On the basis of the application received, the Bank of Latvia performs a money transfer while the Latvian Central Depository - a securities transfer. Settlement is performed on a T+3 basis. This means that the mutual fund shares will appear in the investor's securities account on the third banking day after the fund shares purchase application has been accepted; however, it should be noted that the Baltikums Asset Management will receive the cash funds for the fund shares purchased also on the third day after investor's application has been accepted.

Note: Legal duties of the Baltikums Asset Management only include ensuring that the fund shares purchase application is filled in correctly. Investor is responsible for the information being authentic and presented in full.
The mutual funds' Asset management company calculates the Funds' NAV on a daily basis. This information is published on the Asset management company's web-page, on the Riga Stock Exchange web-page and in the newspapers "Dienas Bizness", “Biznes & Baltija”, “Telegraph".

How to sell fund shares?

An important advantage that the open-end mutual funds feature is that investor is able to sell his fund shares to the Asset management company. The Asset management company (Baltikums Asset Management) has an obligation to buy back the fund shares immediately upon investor's request.

The mutual fund shares buy-back procedure is performed in accordance with the regulations defined in the Fund's Prospectus. This procedure is simple:

1. Investor hands in the Fund shares buy-back application to Baltikums Asset Management, Komercbanka Baltikums or Latvijas Unibanka.
2. Similarly to the Fund shares purchase procedure, investor is to fillin the Fund shares buy-back application form in four copies.
3. On the basis of the order submitted by investor Baltikums Asset Management redeems the Fund shares issue previously owned by this investor and transfers the relevant amount of cash funds for the Fund shares buy-back less fees applicable to his current account. The settlement is performed on a T+3 basis. This means that investor shall receive the payment into his account in 3 days.

Note: Upon the sale of Fund shares, which are then taken out of circulation, investor loses all the rights previously associated with ownership of the Fund shares, with the exception of the call rights in the amount of the Fund shares buy-back price.

Option 2

How to buy fund shares?

Investors also have an opportunity to purchase/ sell mutual fund shares without using an interbank FCP transaction.

In order to execute this kind of transaction you need to:

1. Open a current account and a securities account with any Latvian commercial bank that is a member of Latvian Central Depository.
2. Fill in the Fund shares purchase/ buy back application at the Fund Asset manager's -  Baltikums Asset Management - office or at another official distributor's office.
3. Transfer the amount of money needed for executing the relevant transaction with the Fund shares to the current account of the open-end mutual fund.
4. The mutual fund shall then order its Custodian bank to transfer the Fund shares to investor's account. The transaction is then performed within one banking day.