FAQ
What is a Management Company?
A Management Company is a company authorized by the Central Bank of the Republic of San Marino to provide a collective savings management service, through the establishment of Mutual Investment Funds. It can also provide individual portfolio management services, investment advisory services, as well as other reserved activities as indicated in the Register of Authorized Entities published by the Central Bank of the Republic of San Marino.
What is a Mutual Investment Fund?
A Mutual Investment Fund is a "container" of financial instruments where the money of many small and large savers converges. The Fund is managed by a company specialized in this type of activity and is subject to the supervision of an Authority (for San Marino, the Central Bank of the Republic of San Marino). The Fund invests "as a whole", meaning as if it were a single entity, the capital raised from a plurality of investors according to the Fund's investment policy.
The assets of the Fund constitute an autonomous and separate asset from that of the Management Company, which cannot be attacked by the creditors of the Company itself.
The assets of the Fund constitute an autonomous and separate asset from that of the Management Company, which cannot be attacked by the creditors of the Company itself.
Why choose a Mutual Investment Fund?
There are several reasons why investing through a Mutual Investment Fund may be preferable to an individual investment. The Management Company is a specialized company in this activity, which can also rely on access to a plurality of information and analysis sources, as well as greater bargaining power that typically ensures much lower transaction costs than those accessible to individual investors.
The old adage that says not to put all your eggs in one basket is also fully confirmed in the financial field; investing through a Mutual Investment Fund, however, guarantees much broader possibilities for diversification of the portfolio of financial instruments than those allowed by individual investments.
The activities of a Mutual Investment Fund are also subject to constant controls both by the internal bodies of the Management Company and by an external Auditing Company, as well as by the same Supervisory Authority. This guarantees levels of transparency and control that are much broader than those guaranteed to individual investors.
The old adage that says not to put all your eggs in one basket is also fully confirmed in the financial field; investing through a Mutual Investment Fund, however, guarantees much broader possibilities for diversification of the portfolio of financial instruments than those allowed by individual investments.
The activities of a Mutual Investment Fund are also subject to constant controls both by the internal bodies of the Management Company and by an external Auditing Company, as well as by the same Supervisory Authority. This guarantees levels of transparency and control that are much broader than those guaranteed to individual investors.
What does a manager do?
A manager is a financial professional who makes investment decisions for a Mutual Investment Fund, consistent with the investment policies of the Fund itself. The Fund's assets are managed in the interest of the subscribers and in total autonomy from the interests of the Management Company, with the sole objective of creating value for the investor.
What is meant by UCITS funds?
UCITS Mutual Investment Funds - an acronym for "Undertakings for the Collective Investment in Transferable Securities" - are investment funds whose management regulations govern investment activities in accordance with the provisions of community directives incorporated into national legislation.
The UCITS regulations impose specific limits on investments for funds in this category, as well as compliance with strict rules regarding the fragmentation and containment of risks for investments in financial instruments.
The UCITS brand thus guarantees greater controls to protect the investments of the Fund participants.
The UCITS regulations impose specific limits on investments for funds in this category, as well as compliance with strict rules regarding the fragmentation and containment of risks for investments in financial instruments.
The UCITS brand thus guarantees greater controls to protect the investments of the Fund participants.
What is the best Fund for an investor?
To identify the best Fund, it is necessary to have clear various aspects of the investor, including the investment time horizon, risk appetite, the investor's willingness to bear losses in search of higher returns, the consistency and composition of their overall portfolio, and their knowledge of financial instruments. Having these aspects clear helps to choose the Fund - or even the Funds - with the risk/return profile that best meets their needs.
What is the risk indicator or risk profile of a Fund?
The risk profile of a Fund is an indicator calculated based on the historical or expected performance of a Fund.
It varies on a common scale for all Funds that ranges from level 1 (lowest risk, but not zero) to level 7 (highest risk). As the risk profile increases, so do the expectations of expected performance, but with them also the potential for unexpected results.
The communication of the indicator for each Fund allows the investor to know the potential risk level of the investment they are exposed to before investing their savings.
The investor can check the risk indicator on the page dedicated to each Fund and in the legal documents made available by the Management Company, including the KIID (Key Investor Information Document), which is the document containing key information for investors. The KIID presents for each Fund the necessary information (risk indicator, investment objective, expenses) to help the investor make an informed decision about their investment.
It varies on a common scale for all Funds that ranges from level 1 (lowest risk, but not zero) to level 7 (highest risk). As the risk profile increases, so do the expectations of expected performance, but with them also the potential for unexpected results.
The communication of the indicator for each Fund allows the investor to know the potential risk level of the investment they are exposed to before investing their savings.
The investor can check the risk indicator on the page dedicated to each Fund and in the legal documents made available by the Management Company, including the KIID (Key Investor Information Document), which is the document containing key information for investors. The KIID presents for each Fund the necessary information (risk indicator, investment objective, expenses) to help the investor make an informed decision about their investment.
What is meant by NAV?
The NAV (Net Asset Value) represents the purchase (or sale) price of a share of a Fund. The NAV is calculated by dividing the total net assets of a fund (i.e., the total amount of positions held by the Fund in the financial markets net of its liabilities) by the number of shares outstanding on the same date.
The NAV, which for open Funds intended for the general public proposed by 739 Management Companies is calculated daily, is also published on the company's website.
The NAV, which for open Funds intended for the general public proposed by 739 Management Companies is calculated daily, is also published on the company's website.
Is there a time constraint on investing in Funds?
For the "open" Funds proposed by 739 Management Companies, investors can request total or partial reimbursement of the shares held at any time without having to provide any notice or reason.
The reimbursement of shares can therefore occur on any valuation date of the share, that is, daily, partially or totally. All shares are reimbursed at a price corresponding to the Net Asset Value per share of the relevant Fund.
Reimbursement requests are centralized daily and executed on the first working day following based on the NAV of the previous day. The methods of reimbursement of shares are detailed in paragraph VII. "Reimbursement of Shares" of Part C of the Unique Management Regulation of open Funds.
There is therefore no time constraint on investing in Funds, subject to the opportunity to choose the Fund in a manner consistent with the investment time horizon indicated for each of them.
The reimbursement of shares can therefore occur on any valuation date of the share, that is, daily, partially or totally. All shares are reimbursed at a price corresponding to the Net Asset Value per share of the relevant Fund.
Reimbursement requests are centralized daily and executed on the first working day following based on the NAV of the previous day. The methods of reimbursement of shares are detailed in paragraph VII. "Reimbursement of Shares" of Part C of the Unique Management Regulation of open Funds.
There is therefore no time constraint on investing in Funds, subject to the opportunity to choose the Fund in a manner consistent with the investment time horizon indicated for each of them.
What is meant by the investment time horizon?
The investment time horizon, often also referred to as holding period, corresponds to the minimum suggested duration for holding a financial product.
Duration, potential return, and risk are closely linked: for a very short investment horizon, it is generally preferable to invest in Funds with a low risk profile, although potentially less rewarding. If, on the other hand, the investor is willing to invest their savings for the medium to long term, it may be more appropriate to invest with a time horizon of several years, which typically has the advantage of also having a better potential return.
For the Funds proposed by 739 Management Companies, the recommended investment time horizon is clearly highlighted on the pages dedicated to individual Funds and in the supporting documentation, including the KIID (Key Investor Information Document), which is the document containing the key information for investors essential for enabling investors to make an informed investment decision.
Duration, potential return, and risk are closely linked: for a very short investment horizon, it is generally preferable to invest in Funds with a low risk profile, although potentially less rewarding. If, on the other hand, the investor is willing to invest their savings for the medium to long term, it may be more appropriate to invest with a time horizon of several years, which typically has the advantage of also having a better potential return.
For the Funds proposed by 739 Management Companies, the recommended investment time horizon is clearly highlighted on the pages dedicated to individual Funds and in the supporting documentation, including the KIID (Key Investor Information Document), which is the document containing the key information for investors essential for enabling investors to make an informed investment decision.
Is there a minimum amount required to invest in a Mutual Fund?
It is possible to access investment in a Mutual Investment Fund even by investing very small amounts. The minimum amount for investment in "open" Funds offered by 739 Management Companies is set at 1,000 euros for the initial subscription and 100 euros for subsequent subscriptions. It is thus possible to add more money to the Fund in the future, even for very small amounts.
Additionally, the investor can also choose to subscribe through a Capital Accumulation Plan (PAC), which allows the investor to access additional benefits.
Additionally, the investor can also choose to subscribe through a Capital Accumulation Plan (PAC), which allows the investor to access additional benefits.
What is meant by PAC mode?
The PAC mode (Capital Accumulation Plan) is a subscription method for shares of a Fund that involves automatic periodic payments for even very limited amounts, with the aim of regularly allocating even a small portion of savings to accumulate a certain capital over time without committing significant resources upfront.
One of the main advantages of PAC is that it mitigates the risks of market fluctuations, as with PAC, investments are made consistently over time, spreading purchases over even long periods. This way, it avoids the damage related to the emotionality of investments, which usually leads to selling when prices are low and buying when prices are already too high.
The investor can get a rough idea of the results of an investment in PAC by using the simulator available in the “Funds” section of our website.
One of the main advantages of PAC is that it mitigates the risks of market fluctuations, as with PAC, investments are made consistently over time, spreading purchases over even long periods. This way, it avoids the damage related to the emotionality of investments, which usually leads to selling when prices are low and buying when prices are already too high.
The investor can get a rough idea of the results of an investment in PAC by using the simulator available in the “Funds” section of our website.