Fund Features

FIMA SEE ACTIVIST is the first closed-end fund registered in Serbia and its foundation represents the first successful IPO procedure conducted on Serbian financial market. Further to its Investment Policy, the Fund could be designated as growth fund that invests the most significant part of its portfolio into shares listed on the Belgrade Stock Exchange, mostly in the Mid Cap and Small Cap segments. The Investment Policy of FIMA SEE ACTIVIST has several characteristics:

A. Fundamental Analysis

Each investment decision is being made based on previously conducted company analysis. The Fundamental Analysis considers that analyst team and portfolio manager completely analyze company’s operations and valuate its shares by attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors.

D. Fund Shares

The Fund possesses 10 020 issued shares with right to vote.

The Fund shareholders, on the basis of the acquired shares, have the following rights:

  1. Right of access to general legal acts, other documents and information about the Fund
  2. Right to participate in the General Assembly of Shareholders of the Fund
  3. Right to vote at the General Assembly of Shareholders of the Fund, in such a way that one share always bears the right to one vote
  4. Right to a proportionate profit share and dividend payment
  5. Right to profit share in the distribution of liquidation surplus in case of the Fund liquidation
  6. Right to preferential treatment in the acquisition of the later issued shares
  7. Right to freely dispose of shares

B. Activist Approach

FIMA SEE Activist Fund will strive to create an added value through its activist approach thus it will take part in corporate governance processes as an active shareholder and participate in creating management structure, auditing committee, as well as, in all strategic decisions. Such an approach to investments of the Fund implies appointing the Fund’s representatives or other shareholders as members of the management and supervisory bodies of companies (the Board of Directors, the Supervisory Board members and the like). The Fund itself, as a shareholder, in direct representation at the sessions of the General Assembly, will participate and communicate with other shareholders within the legal framework in order to act in the best interest of its own shareholders.

E. Advantages

The main advantage of the closed-end fund, compared to open-end funds, is that closed-end fund does not need to liquidate securities to meet investor demands for cash. Therefore the level of liquidity risk is much lower and it provides the management of the Fund an opportunity to create investment policy that does not oblige them to invest significant assets into the most liquid shares (unlike the open-end fund).

Therefore the process of structuring portfolio is much more liberal in closed-end funds considering the fact that these funds can invest into companies whose shares are not listed and/or traded on the stock exchange. This means that, in normal circumstances, it is expected for the closed-end funds to achieve better performance compared to open-end funds with same or similar investment policy.

C. Regional Diversification of Risk

The Fund will invest its assets in the region of South-eastern Europe, all in accordance with the present law and bylaws. Investment focus is set on securities issued by the companies within the Republic of Serbia, whilst one part of assets will be invested in the region, mainly in Croatia, Bosnia and Herzegovina, Montenegro and Macedonia.