What is an investment fund?
An investment fund is an asset formed by the contributions of any number of savers, known as shareholders.
A management body gathers these contributions and invests them in various financial assets (fixed income, equities, etc.) following some predefined patterns.
Each shareholder owns a part of the fund asset in proportion to the value of their contribution. This fund will increase and decrease according to the profitability of the different financial assets that comprise the fund.
The shareholder pays commission to the management body for presiding over the fund. The law regulates the upper limits of the commission.
What is Net Asset Value?
This is the unit price of a participation in an investment fund.
How is Net Asset Value calculated?
It is calculated by dividing the fund asset by the number of participants contributing to the fund at that point in time. In turn, the fund is calculated in relation to the market prices of the shares and transferable securities incorporated in the fund portfolio (and which are mostly negotiated in secondary organised markets) on that date, subtracting fees and commissions. The management company calculates and publishes the Net Asset Value of the fund on a daily basis.
What types of commission does an investment fund charge?
The Azvalor funds charge the following commissions:
Management fee: A commission that Azvalor charges for managing the fund.
Depositary Fee: A commission for the functions of depositing and holding the fund assets. This commission is paid by the fund assets and is already deducted from the Net Asset Value of the share.
Redemption Fee: A commission of 3% (on the amount to be redeemed) on Azvalor equity funds will only be applied to the redemption or transfer of shares that take place under a year.
Along with the management and deposit commissions, the fund, and therefore the shareholder, bears other fees that affect the final return. The TER [Rate of Return] denotes the percentage of the total expenses borne by the fund in relation to its average assets, from the start of the year to the present date. Expenses include management and deposit commissions, external services and other operating expenses (audit, brokerage, royalties, etc.).
All commissions applied to the funds are within the legally-established limits
Who keeps the redemption fee?
The redemption fee is a penalty for redemptions and transfers for shares held for less than a year. It serves to protect our co-investors over the long term, acting as a disincentive for unreasonable and speculative movements on the part of investors that require us to leave positions at moments that are possibly not appropriate.
If we need to apply this commission at any time, investors who remain in the fund will benefit from it, as it is not passed to the manager but returned to the assets of the fund itself, increasing its net asset value.
How are commissions applied?
Management commission and depositary commission are discounted daily from the net asset value, proportionately and at the expense of the fund.
How can I join an Azvalor fund?
Azvalor investment funds can be subscribed exclusively via www.azvalor.com or at our offices, in person.
How can I make a redemption from an Azvalor fund?
Azvalor investment funds can be redeemed via www.azvalor.com, in person at our offices, or by sending a signed scan to our referenced contact, or to management at operativa@azvalor.com.
Subscription, transfer or redemption orders made by the participant from 14:00 or on a non-business day will be processed together with those made on the next business day. For these purposes, a business day refers to Monday to Friday, excluding holidays in Madrid. Net asset value will not be applied to any operation until the appropriate corresponding documentation has been correctly received. In addition, for the entry subscriptions and transfers, the prior reconciliation of the sum in the fund’s current account is required, together with the documentation. Business days are not considered to be those in which there is no market for assets representing more than 5% of the assets.
When can I expect to receive my money after making a redemption?
Redemption payment of participations will be made by the Depositary within a maximum of three business days from the date of the net asset value applicable to the request. As a result, you can expect to receive your money in your current account four business days later, including the business day of the bank transfer.
What withholdings are applied to redemptions?
Income gained by individual residents as a result of the redemption or transfer of their shares is considered to be capital gains and is subject to a withholding of 19% or asset loss. Income gained by non-resident individuals as a result of the redemption or transfer of their shares will be included, for the effects of personal income tax, in the taxable savings base. The taxable savings base, on the part that does not correspond, where applicable, to the personal and family minimum referred to in the Income Tax Law, will be taxed at the rate of 19% for the first €6,000, 21% from that figure to €50,000 and 23% from €50,000. All this is without prejudice to the tax system established in the regulations in force on transfers between IIC. For the treatment of income gained by companies, non-resident individuals or those under special systems, this will be according to that established by the legal regulations.
What are the initial and additional minimum contributions?
The initial minimum contribution is €5,000 per fund (for individuals aged under 25 it is €500). Any additional contribution must be less than €100.
