FAQ

First of all, Customer has to determine the predicted period of investment. The longer the period the more aggressive investment strategy may be (i.e. it can be chosen the fund which invests a significant part of its assets in equities). Thus, equity investment funds are recommended for the period of at least several years, whereas the funds which are based on safe investment strategies (bonds, State Treasury instruments) should be chosen in case of a shorter investment period. The choice should be determined by Customer's attitude towards investment risk. These Customers, who accept higher risk, expect high profits and make long-term investments, are advised to consider equity funds. Those who are unwilling to take risk and are most of all interested in safety of their investment, should select either money or debt securities funds.

In order to buy an investment fund's participation units, Customer should visit any branch of the Millennium Bank, one's ID required. These Customers of the Millennium Bank who have activated their Millenet service, may use the Bank's investment fund service by themselves. It is possible to make both the first purchase and each following one via the Millenet.

An investment fund is a legal entity whose exclusive domain of activity is investing Customer's means in securities, money market instruments and other property rights, as defined in the Investment Fund Act. The means that the Customer has entrusted to an investment fund company are managed by licensed investment advisors employed by this Investment Fund Company. The advisors' task is to invest the means that have been deposited on a fund's account in such a way as to yield the highest possible profits to the participant on the one hand, and to limit the investment risk on the other.

According to the Bill of 26 July 1991 on Personal Income Tax, personal income on participation in investment units is taxed with a 19%-flat rate income tax.

Customers of investment funds may not reckon the tax by themselves. The company calculates and pays the tax in the revenue office at the moment the Customer makes a repurchase order.

In case of investment in these funds which are denominated in a foreign currency, both the paid and the withdrawn amounts are converted into PLN based on the mean exchange rate by the National Bank of Poland on the date of transaction (the USD/EUR exchange rate on the day the participation units are allocated or repurchased), and the tax is then calculated based on the value in PLN.

The Millennium Fund of Foreign Funds is a unique product on the polish market. This fund enables its participants to invest in the best foreign funds. The choice of funds for the portfolio is made from over 6,000 equity and bond funds, from the universe of more than 500 managing companies.
 

5 investment strategies for each currency (10 subfunds) are available within a single fund. Money paid into the fund may be both in PLN, USD and EUR. Each subfund differs from the others with respect to its investment contribution in foreign equity on the one hand, and debt securities on the other.

Investment decisions are made based on analyses and recommendations prepared by the Wealth Management- a specialist body within the Millennium BCP in London which deals with analysis and evaluation of foreign investment funds.

Customer can order to switch from one subfund to another at any time (within the same currency). Such an order will not result in taxation. The tax will be collected only on making an order of redemption or in case of switch to another fund.

Both funds invest entrusted means in both debt securities and equities. They differ, however, with respect to their level of involvement in respective instrument groups. The Stable Growth Fund invests no less than 55% of its assets in debt securities, whereas the share of the Balanced Fund's investment in this instrument does not fall below 30%. The Stable Growth Fund invests between 10 and 40% of its assets in equities, while in case of the Balanced Fund's the figures are from 30 to 70%.

The Balanced Fund invests 30-70% of its assets in equities. The rest of the means are invested in bonds. The Equity Fund's, on the other hand, may invest between 65 and 100% of its portfolio in equities. Due to its significantly higher involvement in equities, the Equity Fund enables a high profit, investment risk is, however, higher than in case of the Balanced Fund.

No, Subfunds parameters like: fees, order date realization, investment politics, remain without changes.

Investment funds operate based on the Investment Funds Bill of 27 May 2004.

Funds may be created and managed only by investment fund companies.

Savings active management. Mortherlode advantage, which goes from transformation in Subfunds, is free of tax from profits in repleacement between Subfunds. Client pays tax only at dispatching redemption or repleacement order to another Fund.Thi situation is very important in changing boom on stock.

• professional asset management - saving money within an investment fund does not require that the customer should follow and analyse current market conditions. The means entrusted to the fund are managed by licensed investment advisors employed by the company

• profit - investment fund's results have shown that they are profit-competitive as compared to other forms of investment

• diversification of investment - the fund will invest the entrusted means in various equities, i.e. following the rule "never put all the eggs into one basket". Diversification means higher safety than in case of a single investment which, in turn, results in a possibility to gain more profit at a limited level of investment risk

• safety of money means - investment fund are monitored by the Polish Financial Supervision Authority. The property of investment funds is excluded from the fund's insolvency assets and the depositary's bank.

• liquidity of investment - the Customer does not declare what the period of his/her investment will be, and he/she is entitled to withdraw a part or the whole of the accrued means at any time.

The offer of the Millennium TFI includes funds with various level of involvement in both safe financial instruments (e.g. Treasury Bills, Treasury Bonds) and equities. Moreover, the Customer may choose to save his/her money either in PLN, USD or EUR.

Millennium Deposit Subfund (PLN)
Millennium Stable Growth Subfund (PLN)
Millennium Balanced Subfund (PLN)
Millennium Equity Subfund (PLN)

Millennium Dynamic Subfund (PLN)
Millennium Fund of Foreign Funds (PLN,USD/EUR)

The funds are managed by highly qualified experts employed by the Millennium TFI. A team of licensed investment advisors make decisions as to in which equities the funds' entrusted means should be invested. They choose only such instruments which are approved by the statutes of the respective fund.

The Customer purchases participation units with the means that he/she has deposited with the fund. The NAV per participation unit is calculated on each day the Warsaw Stock Exchange is in session. Consequently, it is possible to check on Customer's savings every day multiplying the number of units by their current value. Customer does not have to define the savings period. Customer can either pay in or withdraw a part or the whole of his savings in any time she/he wishes.

Due to article 243 of act given 27/05/2004 about investment fund and KNF acceptation Millennium TFI transformed : Millennium Money OIF, Millennium Debt Securities OIF, Millennium Dolar Deposit OIF, Millennium Stable Growth OIF, Millennium Balanced OIF, Millennium Equity OIF, Millennium Small and Medium Caps OIF and Millennium Central European Medium Caps OIF in one Fund with Subfunds - Millennium OIF.