What is a collective investment scheme?

Collective investment scheme (hereinafter - "CIS") is an investment fund or investment company whose main purpose is to raise investor funds through the distribution of investment units or shares and by dividing investment risk collectively to invest in accordance with the strategy.

What is CIS investment unit?

The Fund’s investment units are transferable securities that prove the right of each Fund's co-owner (Investor) to the assets forming part of the Fund.

Who can manage CIS?

Licensed investment management companies that have received a license to manage investment funds and / or investment companies in accordance with the Law on Collective Investment Schemes of the Republic of Lithuania, the Law on Collective Investment Schemes for Informed Investors of the Republic of Lithuania, and the Law on Collective Investment Schemes for Professional Investors of the Republic of Lithuania, if such a right is provided for in the operating license of a management company.

What are the advantages of CIS?

  • Professional management - professional investment managers conduct investment analysis, monitor world markets and conduct other investment management activities;
  • Risk minimization - due to the size of the attracted capital of the CIS, the CIS can better diversify its investment portfolio than an individual investor could do;
  • Reduction of costs - the size of the capital attracted by the CIS can lead to economies of scale, in addition, part of the costs is independent of the size of the asset invested or the number of transactions carried out, therefore, in the case of the CIS, they are distributed amongst all investors proportionally and the final cost burden for an individual investor may decrease;
  • Investor protection - in cases where the CIS is a licensed financial market participant, it is subject to a wide range of requirements aimed at ensuring the protection of investors' interests in the investment process (for example, the transfer of assets to a depositary which will control the investment of CIS, disclose information to investors in certain standardized forms , conduct independent valuation of assets, diversification requirements, restrictions on investments in certain classes of assets, limitation of financial leverage, capital adequacy requirements, reporting to the supervisory authority, etc.);

What are the main rights of investors in acquiring CISs?

Depending on the concept established in the specific investment fund formation documents, the following rights are distinguished:
  • An investor has the right to receive part of the Fund's available funds (income), if such right is provided in accordance with the procedures specified in the formation of the Fund;
  • The Investor is entitled to receive part of the Fund's assets, which are paid upon cancellation of the Fund, in accordance with the procedure specified in the specific Fund formation documents;
  • An investor is entitled to receive the Fund's prospectus and rules (and their updated versions), copies and annual and half-yearly financial statements;
  • Upon receipt of the investment management's consent, the investor has the right to transfer the available investment units of the respective Fund to third parties by concluding a simple written agreement regarding the transfer of investment units belonging to the investor. For clarity it should be noted that approval of the investment management company is provided in all cases where such a third person meets the criteria applicable to informed investors and the amount it acquires corresponds to the minimum amount invested in the Fund;
  • Depending on the procedures specified in the specific formation of the Fund, the investor has voting rights (including, but not limited to, forming investment committee, the selling of the assets of the Fund in the event of cancellation, the extension of duration of the Fund, etc.).

What are the differences between non-professional / professional / informed investor?

  • Non-professional / Retail investors Unprofessional investors, otherwise known as retail investors, are investors who, because of their characteristics, are not attributed to professional investors.
  • Professional Investors (Professional Investors) A professional investor is an investor with experience, knowledge and skills that allows him / her to make investment decisions and to properly assess the emerging risk.
  • Informed Investors The concept of informed investors is defined by the Law on Collective Investment Schemes for Informal Investors, which establishes the general and specific criteria that an investor must meet to invest in investment funds intended for informed investors. According to the law, informers are considered as investors:
    • Investors with the status of professional investors in accordance with the Law of the Republic of Lithuania on Financial Instrument Markets;
    • Non-professional investors who have confirmed their status as informed investors to the investment management company and invest / undertake to invest in the fund at least EUR 125,000 or an equivalent amount in another currency;
    • Legal entities without legal status of professional investors who, having written in their status as an informed investor, invest at least EUR 125,000.

    What is the Net Asset Value of the investment fund and how it is calculated?

    Net Asset Value (NAV) is the market value of the fund assets minus fund liabilities. To calculate the net asset value of the unit, the net value of the fund is divided by the number of units of the fund. For example, if the value of the investment portfolio is 101 million EUR and the Fund's liabilities amount to 1 million EUR, the net worth of the fund will be 100 million EUR (100-1). If there are half million’s fund units in circulation, then the net worth of one unit will be 200 euros (100 / 0.5 = 200).

    What is diversification?

    Diversification is an investment technique (which may be part of an investment strategy) that is used to reduce the risk of an investment portfolio by including a larger amount of different investments.

    How to become a client of UAB Orion Asset Management?

    Contact us by arriving to one of our offices on working days from 9:00 to 17:00. or by phone +370 5 203 26 99

    Our locations:

    A. Tumėno str. 4, 11th floor, Vilnius

    Mindaugas pr. 50, Kaunas (Zalgiris Arena)

    How to purchase fund units?

    The Fund's investment units can be obtained directly from our investment fund center.

    Fund purchase / sale methods:

    • You can purchase / sell fund units by visiting our office on working days from 9:00 to 17:00;
    • Purchase / sale of fund units upon sending or delivering fund purchase documents signed directly to the Orion AM office.

    Fund unit purchase / sale documents:

    • Application for purchase / sale of fund units;
    • Informed-investor questionnaire (if invested in fund for informed investors);
    • Power of attorney *

    * Spouse's authorization if the property is a joint property.

    Where are the fund units stored?

    Units are kept at the custodian or depositary - AB Swedbank, AB SEB Bankas.

    Who is the custodian and depositary?

    A depositary can be the only bank that has the right to provide investment services to the Republic of Lithuania and has a registered office or established branch in Lithuania.

    A security custodian may only be a commercial bank authorized to provide investment services in the Republic of Lithuania or another EU member state and having a registered office or branch in the Republic of Lithuania.

    Unlike depositary, the custodian only provides fund unit / share storage function, does not execute strict control and does not have the obligation to monitor continuously whether the fund managed by the investment management company complies with the operational provisions defined in the fund documents, etc. the above-mentioned duties.

    What are the fund fees for specific fund?

    The fees for the acquisition (subscription) of fund units are different, they are described in more detail in each fund rules and / or prospectus. You can also get acquainted with the subscription tax policy on our website.

    Where I can find information about the funds?

    Information about our funds is available on our website by going to a “Funds” page and selecting specific fund.