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Trust management

ASSERTS TRUST MANAGEMENT – the agreement according to which You hand money and/or securities for a professional manager management.

MANAGER – the professional team which follows the market condition, purchases and sells securities, builds investment strategies aimed at their client-investors profits increase on a daily basis. The manager acts in Your favor providing investments maximal profitability.

You and the manager sign the TRUST MANAGEMENT CONTRACT stipulating all conditions of management under individual investment strategies according to Your profitability and risk preferences. After that the manager uses the instruments of Your choice to form and manage Your investment portfolio according the contract provisions.

Trust management may be interesting for You as the most optimal investment variant which allows You setting Your own investment preferences under the investment portfolio formation, risk level, investment time, etc. with simultaneous use of the professional managers team advantages and as a consequence higher profit at lower risk level.

ACB "Lanta-Bank" (CJCS) being a professional equity market player offers You to use a professional managers team and increase Your capital.

UIT OR TRUST MANAGEMENT?

Unit investment fund purchase disadvantages:

- in case UIT has a large shareholder when he "leaves" UIT the managing company sometimes has to sell assets in order to provide the necessary money sum presence on the account. Almost in all cases such a situation results in other shareholders shares price downfall.

- UITs activity strict regulation described as an advantage in press-releases in reality results in the fact that in conditions of restricting the maximal share of owned securities and maximal share of money in UIT structure the shareholders don't get the full profit (at market growth) and suffer much grater losses (at market downfall) than in almost same conditions in case of the trust management.

- Having bought a share You can't effect the asserts choice in UIT or their structure. Within the trust management contract You have such a possibility.

- UITs grant no consultation services. Trust managers are always ready to tell about the current market situation and its development forecasts.

- The shareholder irrespective of whether he gets profit on results of work or not will suffer some costs (for management - payments to the Management Commission, for securities storage - payments to the Depository, for audit - payments to the Auditor) that could make several percent per year. Thus if on a year results UIT profitability makes 15% per year and the above mentioned costs make 5% from UIT asserts price than Your real profit will make only 10%. In some cases this sum is also subject to reduction by about 2-4% levied for the share sale and purchase. In the result Your investments profitability makes not 15% but only 6-8% per year.

Trust management disadvantages:

In case of trust management we as a rule talk about rather a large money sum of not less than 500 thousand roub.

"TRUST MANAGEMENT" SERVICE CONDITIONS:

The passive index share portfolio (share portfolio - "blue chips") strategy:

Service conditions: the minimal sum - 500 000 roub; the minimal term - 6-12 months (terminable ahead of schedule).

Portfolio structure: shares - 70%-100%, money - up to 30%.

Expected profitability and risk: Investments maximal possible profitability in the Russian equity market in case of the market total growth at rather a high investment risk level.

Management specificity: the management strategy presupposes the portfolio structure minor changes after its formation which decreases management costs for the client.

Service price: 10% from the resulting from the management net profit.

Advantages for the client: The minimal level of money necessary for the trust management contract signing and minimal costs for the client.

The managed index share portfolio (share portfolio - "blue chips") strategy:

Service conditions: the minimal sum - 1 000 000 roub.; the minimal term - 6-12 months (terminable ahead of schedule).

Portfolio structure: shares -30%-100%, money - up to 70%.

Expected profitability and risk: Investments maximal possible profitability in the Russian equity market in case of the market total growth at a lower investment risk level than in case of the passive index portfolio.

Management specificity: the management strategy presupposes a more active management (in comparison with the passive management strategy) presupposing the closure of up to 70% of opened positions in case of the market expected downfall.

Service price: The commission depends on the profitability level fixed under the management results (up to 10% annually - 10% form the net profit sum, 10% - 30% annually - 15%, from 30% annually and more - 20%).

Advantages for the client: the strategy profitability oriented onto getting the maximal profit on the Russian equity market at the risk level lower than in case of the index share portfolio passive management.

The balanced portfolio (shares portfolio - "blue chips" and bonds of a high credit rating) strategy:

Service conditions: the minimal sum - 1 500 000 roub.; the minimal term - 12 months; guarantee of 100% invested sum return.

Portfolio structure: shares - up to 50%, bonds -30%-70%, money - up to 70%.

Expected profitability and risk: the capital distribution between bonds and shares provides a smother increase of money value which provides a considerably lower risk level than in case of the indexed shares portfolio. But in case of the market growth the strategy profitability will be lower than that of the indexed shares portfolios.

Management specificity: the strategy presupposes the equity market active monitoring and bonds to shares ration in the portfolio frequent reconsidering.

Service price: 15% from the net profit resulting from the management. 20% from the net profit resulting from the management in case of 100% invested sum return guarantee (the capital return guarantee has no power in case of the contract ahead of schedule termination).

Advantages for the client: the strategy is oriented onto getting the profit which is higher than deposits interests sum and first of all will be interesting for clients not wishing to risk a large sum of invested capital.

All specified strategies allow the client terminating the contract ahead of schedule. If on the moment of the contract termination the profitability on results of the management makes less than 20% annually the client pays 3% annually.