Frequently Asked Questions
1Can I invest in your funds? What is the minimum investment amount?
Alternative Investment Funds under the Management of IC Realty Ltd are designed for persons who are able to bear the economic risk of the investment and are either “Professional” or “Well-informed” investors within the meaning of the Law. The minimum investment amount is 125,000 EUR. However, please do not hesitate to contact us to discuss your investment ideas and to find a tailor-made solution to meet your personal needs.
2What are the guarantees that I receive my funds back? What are the guarantees of my profit?
IC Realty is licensed and authorized by CySEC to manage investments under AIFs. All decision-makers in the company are highly-experienced professionals and hold CySEC advance certificates that prove their qualifications. Moreover, our Portfolio and Risk Management teams tend to keep the conservative approach to the investments. However, we would like to emphasize that alternative investments are subject to risk and you can lose all invested funds.
3Do investors participate in decision making to invest in a specific asset?
You as an investor can only propose an investment project, and our highly-qualified specialists will review it for investment suitability with our AIFs. However only a Fund Manager can decide to either invest in some assets/projects or not.
4Why should I provide so many personal documents before the application?
As per the Directive for the Prevention and Suppression of Money Laundering and Terrorist Financing, the Company must request documents which would be sufficient to understand the Client (KYC), apply the Risk Based Approach (RBA) and to construct Economic Profile of each client. Each case will be examined individually by the Company’s AML Officer and in accordance with the Law and the internal policies established by the Company.
5What is Risk Based Approach (RBA)?
RBA aims to help AML Officers in their Money Laundering and Terrorist Financing monitoring. This flexible methodology considers vast scope of factors including investment amounts, client’s residency, type of income and many more to perform a comprehensive categorization of the clientele. It determines the amount of time and effort an AML Officer should allocate to each client’s monitoring.
Since all data used for RBA must be well-documented, the Client will be asked to provide as many documents as needed to perform a comprehensive RBA considering all the factors. The initial RBA-scoring must be performed prior to the investment. Reevaluation will be performed regularly according to the client’s Risk Profile (usually, annually or once in 2 years).
6How is an Economic Profile constructed?
The Economic profile is constructed individually for each client. It reflects all economic activities relevant to the investment amount. For example, if the investment amount is 125 000 EUR, it means that the client should provide well-documented source of legally possessed 125 000 EUR. It’s not just a simple bank statement with 125 000 EUR in the account, but a document showing origin of the funds. How did a person (natural or legal) actually earn the money? This may be audited Financial Statements of a company, or a Tax Return with the reasonable income of an individual declared – for full list of accepted documents please see Application Form, Appendix B.
7What if I want to invest much more? Should I provide documented proof of each cent I wish to invest?
Yes, in some cases, it even requires to build total wealth profile of the client which would mean that all liquid and illiquid assets should be reflected and well-documented.
8Last time when I invested the same amount, I had to provide less documents. I heard that another client was requested to provide different papers. Why is that?
The situation changes rapidly, the Legislation has been changing several times over the last decade, therefore the KYC requirements now are so much stricter than before. Each person will be asked different types of documents depending on their Risk Profile. The full KYC including risk-based evaluation and economic profile construction must be completed before the investment. It is under consideration of the AML Officer to decide on the sufficiency of the process.
9What are the requirements to the documents? Can I send scans of the documents to you?
You may show originals of the documents to the Employee of the Company who shall take copies of your documents and certify them true copy. Otherwise, you may certify them with the Notary or Apostille and send them to the Company’s Office. Your documents must be in English or Greek language. If the document is in another language, official translation should be performed. Alternatively, if one of the employees of IC Realty knows the original language of your documents and can translate them into English or Greek, you may translate documents internally in IC Realty.
For full list of requirements please see Application Form Appendix A.
10What information and how often does the investor receive about his investment?
All investors receive, free of charge, the latest Annual and Half-yearly report of the AIF (or RAIF), the Offering Documents of the Fund, and its Instruments of Incorporation. In case of an umbrella Fund, all investment compartments will share same Offering Document, Annual and Half-yearly reports.
Potential investors can receive all abovementioned documents upon request.
Further, investors receive the Key Information Document (KID) and the NAV report as soon as it is published by the Administrator of the Fund and according to the regulations of each compartment.
11Can I withdraw my money any time I want?
The funds of investment compartments may be invested in illiquid assets, such as real estate and private equity. To ensure that it is able to fulfill the investment objectives and the requirements of each project, the Fund manager may set a lock-up period.
Investors may transfer or assign their units with the Directors’ consent but cannot redeem their units until the expiry of the lock-up period. The lock-up period is calculated from the initial investment date or as may change by simple majority of votes cast at a general meeting or with the prior written approval of the investors of the relevant investment compartment.
12Does the investment compartment which I have invested, provides dividends or any other type of income?
The investment objectives and the rules of each of the investment compartments are available to each of the investors, including the prospect investors, free of charge. Each investment compartment has its own strategy as stipulated in the terms of the offering memorandum and its supplements, or as a final distribution upon dissolution of the Fund. In the case that the investment compartment does not provide any dividends to investors, then all future income will be re-invested in the investment compartment, as part of its strategy.
Investors however, should note that payment of any future dividends is not guaranteed and will be at the discretion of the external manager after taking into account various factors including the investment compartment’s operating results, financial condition and current and anticipated cash needs.