Corporate Governance

Closed-end fund is by the Law obliged to have a certain corporate structure such as management bodies (the General Assembly of Shareholders and the Supervisory Board), as well as, it has to operate in accordance with corporate principals which are more than severe. There is a wide range of obligations to be fulfilled towards regulatory bodies, shareholders and investment public. The closed-end fund is obliged to report on its regular business activities and it prepares and issues annual and semi-annual reports in accordance with the Law and bylaw provisions. Upon undergone audit control, once financial statements and reports are published, they are available to all interested parties, as well as, all other relevant information when needed. The General Assembly of Shareholders is being held at least once a year, on which occasion all relevant decisions, regarding the Fund’s activities for the following period, are being made by shareholders themselves (appointment of member of the Supervisory Board, distribution of dividends, increase and decrease of capital etc.). The Supervisory Board is supervising operations conducted by the Management Company and it is reporting on that matter to the General Assembly of Shareholders. The Custody Bank has significant authorities as the guardian of the Fund’s asset and the controller of the activities conducted by the Management Company.

It is expected for the closed-end funds to achieve better performance compared to open-end funds with same or similar investment policy.

Within the legal frame, closed-end funds are differently organized compared to private equity funds and they are obliged to meet high operating standards as they are subject to stringent laws and oversight by the Security Exchange Commission. Closed-end funds are in the domain of “public companies”.