Open-end mutual fund - a mutual fund, asset manager of which has an obligation to buy the Fund shares back from investors immediately upon their request.

Baltic Index - a stock market index tracked by the BNS news agency, as well as by Riga Stock Exchange, Tallinn Stock Exchange and Lithuanian National Stock Exchange.

Baltic states - Republics of Latvia, Estonia and Lithuania.

B group states - these are OECD non-member states (as defined in the "Regulations on calculation of the credit institutions activity indicators" by the Bank of Latvia).

Broker (in the securities market) - a licensed individual who performs intermediary services in the securities market.

DVP - delivery versus payment type of transaction, assuming simultaneous cash and securities settlement. This service is offered by the Latvian Central Depository, in accordance with LCD regulations and instructions.

Issue price - price of the mutual funds shares primary placement, which is defined as provided for in the issue prospectus.

Issue prospectus - a document containing detailed description of the issuer and its securities issued into public circulation.

Fund consultant - a person offering intermediary services in the securities market as well as performing other types of activity as defined in the LR legislation, Fund prospectus, Fund management regulations and an agreement with the Asset Management company, who is granted legal right to conclude transactions with the Fund assets on the basis of orders given by the Asset Management company.

IJSC - Investment joint-stock company.

MF - mutual fund.

MF "Baltic Index Fund" - short name of the open-end mutual fund Baltic Index Fund launched by IJSC Baltikums Asset Management.

MF "Government Bond Fund" - short name of the open-end mutual fund Government Bond Fund launched by IJSC Baltikums Asset Management.

Mutual fund share - MF share (also - investment certificate) represents property rights associated with the value of one fund share, i.e. Net asset value (NAV). A mutual fund's NAV is calculated as the product of the fund assets total value division by the amount of shares outstanding.

Investor and/or Fund investor - a person investing assets into the mutual fund.

Mutual fund - property constituted by investments made for the Fund investor's assets paid for the Fund shares purchased, as well as property obtained from transactions with the Fund assets.

Mutual fund share - security issued by the Investment company that certifies the Fund investor's co-ownership in the Fund and the legal rights originating from such a co-ownership.

Mutual fund share distributor - IJSC Baltikums Asset Management and JSC Akciju komercbanka ”Baltikums”.

Securities account custodian - a legal person that has the right to open, hold and close securities accounts in accordance with the law "On securities" provisions and the LCD regulations.

Latvian Central Depository - non-profit joint-stock company that is books and accounts for all the securities in public circulation in Latvia, as well as controls Riga Stock Exchange securities transactions settlement.

LR - Latvian Republic.

Ls/LVL - the national currency unit in Latvian Republic - Latvian Lat.

UIS - Union of Independent States.

OECD - Organisation for Economic Co-operation and Development.

REPO - Assets sale with buy-back obligations.

Public information - detailed information on the Fund, Asset management company and Custodian bank that is in accordance with the LR legislation freely accessible to all Fund investors. This issue is addressed in the "Fund management regulations" 12th part - "The order of making public statements and public information made available".

Riga Stock Exchange and/or RSE - non-profit joint-stock company that organises open and regular trading in securities that are in public circulation.

Asset management company - Investment joint-stock company Baltikums Asset Management.

Custodian bank - a legal person that holds Fund assets, accounts for the Fund assets and transactions with those, as well as performs other duties specified in the LR legislation and Custody agreement with the Asset management company.

Custody agreement - an agreement concluded between the Asset management company and Custodian bank in written, and providing for the Custodian bank undertaking the duties to hold Fund assets, perform transactions with the Fund assets and Fund account in accordance with LR legislation, Fund prospectus and the Asset management company orders.

Security - a document certifying issuer's liability to the owner of the document.