Unit Investment Funds

UDC Progress Interval Unit Investment Fund

The fund is designed for investors seeking to grow their savings at a pace exceeding the level of US dollar inflation. The assets of UDC Progress Interval Unit Investment Fund are formed predominantly from high-quality securities with an investment-grade credit rating (not lower than BBB– according to S&P Global Ratings, Moody’s Investors Service or Fitch Ratings).

Target return

10% per annum

Fund currency

USD

ORION CEUIF

A reliable solution for investors seeking stable returns with a moderate level of risk and high asset liquidity.

Investment strategy

ORION Closed-End Unit Investment Fund is designed for investments in liquid financial instruments that can be converted into cash within one month. The strategy focuses on capital preservation, reduced volatility and the minimisation of potential losses through the use of a more conservative set of assets.

Date of the certificate of state registration of the unit issue: 17.05.2023

MIZAR CEUIF

An aggressive solution for investors focused on achieving superior returns with a reasonable level of risk.

Investment strategy

MIZAR Closed-End Unit Investment Fund invests in financial instruments with an increased risk premium. The investment strategy involves investing in non-traded instruments with high potential, while risk control and loss limitation remain key elements of the strategy.

Date of the certificate of state registration of the unit issue: 17.05.2022

What is a Unit Investment Fund and how does it work?

Pooling of funds

Investors contribute money, and the funds are combined into a single investment pool.

Fund management

The management company analyses the market and buys and sells assets.

Profit or loss

Proportional to the number of units acquired and changes in their value (Net Asset Value, NAV).

How to choose the right Unit Investment Fund?

When selecting a unit investment fund (UIF), it is important for an investor to consider several criteria in order to make an informed decision. Below are some recommendations:

Financial goals

Define your financial goals and time horizon. Determine how much money, in which currency and for what period you intend to invest, when you plan to return the invested funds and earn a profit. Setting clear financial goals will help you navigate the options and select appropriate investment strategies.

Risk and return

Assess your financial risk tolerance and your understanding of the relationship between risk and return. Any investment always involves a certain level of risk, and it is important to understand what level of risk you are comfortable accepting. Remember that higher returns are usually associated with a higher level of risk.

Investment strategy

Study the investment strategies of management companies. Make sure that the strategy of the management company you choose is aligned with your financial goals and the level of risk you are prepared to accept. For example, if you are seeking stability and capital preservation, the fund’s strategy should focus on low risk and stable income.

Management company

It is important to understand whom you are entrusting with your money. Management company websites usually provide information about the individuals who directly make investment decisions. The knowledge and experience of these professionals do not guarantee returns, but they increase the likelihood of high-quality asset management.

Selecting a Unit Investment Fund

Shortlist the UIFs that meet your preferences based on the criteria above: type of fund, investment strategy, frequency of unit redemption, exchange listing (tradability), etc. Pay attention to asset management fees as well as other potential costs. Remember that high fees can reduce your actual investment returns.

Questions and Answers

A unit investment fund (UIF) is a collective investment vehicle in which investors’ funds are pooled into a single pool and managed by a professional management company. Each investor receives units (shares) of the fund.

By investing in a UIF, you entrust asset management to specialists who analyse the market and make decisions on buying and selling securities (shares, bonds, etc.) with the aim of generating returns.

Your profit (or loss) is proportional to the number of units acquired and changes in their value (Net Asset Value).

The cash and securities of a unit investment fund (hereinafter, the Fund), in accordance with the Investment and Venture Funds Act of the Republic of Kazakhstan (hereinafter, the Act), are held by a custodian.

The custodian performs key investor protection functions:

safekeeping of the Fund’s cash and securities;
monitoring the legality of the management company’s transactions;
confirming that transactions comply with legislative requirements and the Fund’s rules;
preventing the unlawful use of assets.

Investing in UIFs allows you to earn returns from financial markets without the need to manage a portfolio independently. Your funds are managed by a professional team that analyses the market, selects instruments and monitors risks. This approach is convenient, saves time and reduces the likelihood of errors, especially for novice investors.

Income or losses begin to accrue from the moment the units are purchased. The unit price may change daily depending on market movements of the assets included in the fund. When asset values rise, you earn income; when they decline, losses may occur.

UIFs, like any investments, are subject to market risks, including changes in the prices of shares, bonds and other instruments held by the fund. The management company mitigates these risks through diversification (allocating investments across different assets) and professional management.

In addition, UDC Progress Interval Unit Investment Fund invests only in securities with an investment-grade credit rating of not lower than BBB– according to international rating agencies (S&P, Moody’s, Fitch), which significantly reduces the risk of issuer default.

The unit price is calculated daily based on the current market value of all fund assets. It is published on the next business day after the calculation. You can always find the current unit price on our website or in your personal account.

At present, UD Capital JSC does not charge an asset management fee. Only custodial fees and necessary operating expenses are paid from the fund’s assets.

The revocation of a licence or the cessation of activities of a management company does not mean a loss of investments.

The laws of the Republic of Kazakhstan provide for investor protection mechanisms and a transparent procedure for preserving or returning investors’ funds.

In the event of suspension or revocation of the management company’s licence, the Fund is transferred to another management company or is liquidated with subsequent distribution of funds to unit holders.

In the event of suspension or revocation of the management company’s licence, the custodian initiates the procedure for further actions with respect to the Fund. Possible outcomes include:

Transfer of the Fund to another management company

The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market and the custodian may appoint a new management company, and the Fund will continue its operations without termination.

Liquidation of the fund

The fund’s assets are sold, and the proceeds are distributed among unit holders in proportion to the number of units they own.

Redemption of units

Early redemption of units is possible in accordance with the fund rules.

All questions and answers

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