Investment funds create their assets out of contributions made by investors. Investment funds are divided into:
- open-ended
- closed-ended
Accumulated funds are managed by the investment funds society. Assets of a fund are, next, invested into a variety of assets – into financial instruments admitted or not admitted into stock exchange trading in Poland or abroad (shares, bonds, treasury bills), real properties or other financial instrument allowed according to the prevailing law and approved by the investors. The scope of investments of a fund and type of acquired assets is set forth in each case in statutes of a fund in case of open-ended funds, or in the prospectus in case of closed-ended funds.
Share in assets of a fund is expressed in participation titles (participation units in case of open-ended funds or investment certificates in case of closed-ended funds). Differently than someone independently buying financial instruments, participant of a fund does not become its shareholder, but only a holder of participation titles. Value of a participation title changes depending on investment efficiency of a fund. Increase in net assets value is transposed into an increase in the value of a participation title and constitutes profit of the client. Value of participation titles is determined on the basis of fund’s net assets value with a frequency specified in the fund’s statutes or prospectus (during stock exchange session days -for open-ended funds, and over specified periods of time for closed-ended funds). Investment funds are designed for clients who are not interested in independent investing into financial instruments or other assets, and who have decided to use professional agents aware of the complexity and extent of the market, making their invest decisions in accordance with the adopted investment strategy of the fund. Depending on the strategy adopted, investment funds may become an alternative for bank deposits or may be a vehicle for investing into complex financial instruments or assets not available to individual investors. Depending on the fund’s strategy and nature of assets purchased, the funds either may be a source of safe investing (low risk) or may carry considerable investment risk. Sale of participation titles takes place through redemption (at the net assets value per participation title on redemption date) or sale on the stock exchange in case of investment certificates (provided they have been admitted into stock exchange trading).
Dom Maklerski Banku Handlowego S.A. performs distribution of participation titles in the following investment funds managed by Legg Mason Towarzystwo Funduszy Inwestycyjnych S.A.:
- Legg Mason Shares Open-ended Investment Fund
- Legg Mason Balanced Central Europe Open-ended Investment Fund
- Legg Mason Senior Specialized Open-ended Investment Fund
- Legg Mason Bonds Open-ended Investment Fund
- Legg Mason Mooney Open-ended Investment Fund
Detailed information about individual funds, including descriptions of risk factors, are contained in prospectuses available on the Legg Mason web page: www.leggmason.pl
