Trust management

The essence of trust management of funds (TM) is that the client (investor) transfers funds to the bank (trustee) for a certain period of time for their subsequent management for the client to receive a profit.

The bank, through the provision of TM, provides its clients with the opportunity to invest their funds in securities of foreign issuers.

Terms and conditions

The bank renders services of TM on the basis of the Trust Management General Agreement concluded with the investor.

The procedure for receiving the TM service:

Familiarize yourself with the General Terms and Conditions of the Trust Management General Agreement.
Contact the bank (if the client is in Minsk, go to the Securities Department at the address: Minsk, Olshevsky St., 24, office 604; if the client is in another locality, go to the Banking Services Center of Belagroprombank OJSC and ask a specialist to contact the employees of the Securities Department by phone: 8 (017) 229-63-23, 8 (017) 229-64-53, 8 (044) 734-69-05, 8 (044) 764-04-88) to provide the bank specialist with the necessary documents in accordance with Appendix 6 to the General Terms and Conditions of the Trust Management General Agreement.
Submit to the bank specialist an Application for Acceptance of Funds for Trust Management in accordance with Appendix 2 to the General Terms and Conditions of the Trust Management General Agreement.
Open a current (settlement) account, credit your account with money and transfer funds from your current (settlement) account to a trust account opened by the bank.

Objects of TM

shares of foreign companies;
depositary receipts;
shares of traded index funds (ETF);
mutual fund units;
bonds and eurobonds;
derivative securities;
other securities circulating in the foreign and domestic markets;
deposits in banks of the Republic of Belarus.

Forms of TM

Full TM, in which the trustee performs actions with the TM assets on his own, with subsequent obligatory notification of the investor of each action taken. This TM form is suitable for clients who wish to maintain and increase their savings without engaging in transactions in the stock market on their own;
TM by agreement, in which each TM operation is carried out by the trustee after the written agreement of their actions with the investor. With this TM form the trustee gives his agreement/disagreement to the execution of the transaction by the trustee;
TM by order, in which each TM operation is carried out by the trustee solely at the direction of the investor on the basis of his order. This TM form is suitable for clients who wish to independently determine the direction and nature of investments.

Strategies of TM

A conservative strategy is an investment strategy whose goal is to preserve capital and generate income potentially higher than a bank deposit. The strategy is characterized by a low level of risk with a comparable level of return. A significant portion of the Assets is placed in fixed income debt securities.
A moderate strategy is an investment strategy, the purpose of which is high profitability with moderate risks. The strategy is characterized as a «golden mean» in terms of risk / profit. A significant portion of the portfolio is placed in risky equity instruments with high growth potential.
An aggressive strategy is an investment strategy, the purpose of which is to obtain maximum income with a high risk of possible losses. The investment portfolio is mainly formed from high-risk equity instruments, derivative securities, speculative instruments.
An individual strategy is an investment strategy developed for a particular investor according to his preferences in terms of investment term, potential profit, risk level, structure and composition of the acquired assets and other characteristics of the portfolio, as well as the investor's wishes.

Fees

Payment (remuneration) of the bank for TM operations.

Trustee Expenses Reimbursable by investors.

Contacts

More detailed information about the TM service can be obtained by calling 8 (044) 734-69-05, 8 (044) 764-04-88, 8 (017) 229-63-23, 8 (017) 229-64-53. Сustomer service time: Mon - Thu: 8:30 - 17:00, Fri: 8:30 - 15:45, lunch break: 12:30 - 13:15.

Location of the trustee: Minsk, Olshevsky St., 24, office 604.

Question answer

Where to go to conclude an agreement?

If the client is in Minsk, contact the Securities Department at the address: Minsk, Olshevsky St., 24, office 604.

If the client is in another location, contact the Banking Services Center of JSC Belagroprombank and ask a specialist to contact the employees of the Securities Department at 8 (017) 229-63-23, 8 (017) 229-64-53, 8 (044) 734-69-05, 8 (044) 764-04-88.

How long does it take to complete an agreement?

From 30 to 60 minutes (excluding transfer of funds to the TM).

What is the term of an agreement?

The term of the agreement is determined by the trustor when submitting an application for acceptance of funds to the trustee (the period is indicated in the application).

The minimum validity period is 1 year.

The maximum validity period is 5 years.

For any period, automatic extension is provided if there is no intention of the parties to terminate the agreement.

For any period, early termination of the agreement is possible by notification no later than 30 calendar days before the expected date of termination of the agreement.

How can the trustor transfer funds to the trustee?

First, it is necessary to provide the trustee with an application for acceptance of funds into the trust. Next, it is necessary to transfer funds from a current (settlement) bank account to the account of the trustee specified in the agreement.

What is the minimum amount of funds to transfer to the TM?

with full TM: 300,000 Russian rubles;
with TM by agreement: 200,000 Russian rubles;
with TM by order: 100,000 Russian rubles.

What forms of TM does the bank perform?

Full TM;
TM by agreement;
TM by order.

What are the bank’s TM strategies?

Conservative;
moderate;
aggressive;
individual.

Within the framework of each strategy (with the exception of individual), the trustee can develop substrategies with a certain set (composition) of assets included in the trustor’s investment portfolio and their shares in the portfolio.

Is there specialized TM software (mobile application) for the trustor? Is it possible to submit orders and view the portfolio through the software (application)?

Currently, there is no specialized TM software (mobile application).

How to replenish assets in a trust account (deposit additional funds)?

First, it is necessary to provide the trustee with an application for replenishment of the trust account. Next, it is necessary to transfer funds from a current (settlement) bank account to the account of the trustee specified in the agreement.

How long after the conclusion of the agreement can transactions be made?

After concluding the agreement, the trustee, within 1-3 days, opens the necessary accounts for the client with foreign brokers and depositaries and contacts the client for further actions.

What securities (financial instruments) can be purchased for a TM?

Shares, depository receipts, bonds, Eurobonds, investment units of mutual funds, ETFs, derivative securities, etc., traded on domestic and foreign markets. Funds transferred to the TM can also be placed as a deposit on the domestic market of the Republic of Belarus.

On which trading platforms (exchanges) can you purchase securities?

NYSE, NASDAQ, AMEX, XETRA, Euronext, LSE, Moscow Exchange PJSC, SPB Exchange PJSC, BVSE JSC, etc.

from 02/24/2022 - temporarily only Moscow Exchange PJSC, SPB Exchange PJSC and BVSE JSC (i.e. markets of the Russian Federation and Belarus).

How can a trustor submit an Order to carry out a transaction within the framework of a TM by order?

The order may be submitted:

by providing the trustee with the original signed Order (at the address: Minsk, Olshevsky St., 24, room 604, or at any banking service center of the bank);
by sending a scanned copy or photocopy by email (with or without the use of cryptographic information protection tools);
by postal service.

Is it possible to specify several financial instruments in a transaction order?

In one order you can specify no more than 5 positions for making transactions.

How quickly is the trustor's order executed?

From 5 to 20 minutes from the moment it is received by the trustee (if there are funds in the account with a foreign (Russian) broker and if there is a counter order on the exchange).

How is the commission calculated when executing an order?

The commission is charged for the executed (partially executed) order of the trustor. It means that if at least one transaction is concluded by order, a commission is charged for the order (one-time).

How are assets accounted in TM and who owns ownership of them?

In accordance with Article 901 of the Civil Code, property transferred to the TM is separated from other property of the trustor, as well as from the property of the trustee.
In addition, Article 229 of the Banking Code determines that the transfer by the trustor of funds to a trust account does not entail the termination of the trustor's ownership of these funds. The right of ownership extends to both cash and securities received (acquired) under TM.

In whose name is an account opened for recording securities under the agreement?

Accounts for securities purchased under the TM are opened in the name of the trustee. Accounting of assets under the TM is carried out by the trustee in the context of the trustors.

How, with what frequency and within what period are the trustee commissions paid and the trustee’s expenses reimbursed?

The trustee's remuneration and reimbursable expenses incurred by the trustee are withheld from the trustor's income, and in the absence of income, they are indicated in the quarterly report and are subject to payment by the trustor independently no later than the last working day of the month following the reporting quarter by transferring funds from a current (settlement) bank account to the account specified in the report.

What reports are provided to the trustor during the TM process?

During the TM process, the trustor is provided with the Trustee's Reports in the form in accordance with Appendix 8 to the General Conditions of the General Trust Management Agreement. Trustee reports are provided quarterly, upon termination of the agreement and at the request of the trustor.

For the trustor who has chosen the form of a full TM, an additional report is provided on each action taken with the trustor’s assets.

How is the trustee’s report provided?

The trustee’s report can be provided in the following ways:

by direct delivery or receipt of the original in person by the trustor or an authorized representative of the trustor (at the address: Minsk, Olshevsky St., 24, or at the banking service center of the bank);
by post (registered letter with delivery notification). In this case, the trustor will receive a notification (in the mailbox) about the need to pick up the letter at the post office.

It is advisable to inform the trustee at the conclusion of the agreement about the preferred method of receiving the report.

How to withdraw funds from the TM?

It is necessary to provide the trustee with an Application for withdrawal of Assets.

Partial withdrawal of assets:

available if the value of the assets after withdrawal will not be less than the threshold amount for entering the TM;
in case of withdrawal of more than 30% of the value of assets, a commission of 1% of the withdrawal amount is charged;
in case of withdrawal of income, income tax is withheld;
withdrawal is carried out to the current (settlement) bank account of the trustor within 10 working days following the day the trustee receives the Application of the trustor.

Full withdrawal of assets (all funds):

is considered termination of the agreement;
no commission (1% of the value of withdrawn assets) is charged;
when withdrawing assets, all commissions for TM are withheld;
withdrawal is carried out to the current (settlement) bank account of the trustor within 3 business days following the date of termination of the agreement (the date of termination of the agreement is the 30th calendar day following the day the trustee received the Application of the trustor).

What risks are associated with TM and who bears such risks?

Information about the risks associated with transferring funds to a TM is contained in the Declaration of Risks (Appendix 12 to the General Conditions of the General Trust Management Agreement).

Is there a minimum amount of guaranteed income under TM?

In accordance with clause 3.3.12 of the General Terms and Conditions of the Trust Management General Agreement, the trustee does not have the right to give any guarantees or promises about the future efficiency and profitability of TM, including those based on information about the results of its activities in the past.

Is the return of funds transferred to the trust guaranteed at the legislative level?

The Law of the Republic of Belrus «On guaranteed compensation of bank deposits of individuals» dated 07/08/2008 No. 369-Z does not apply to funds transferred to the TM.

What is the taxation of income from the TM?

Income received by the trustor under the TM is subject to taxation.

Documents

Trust management of securities is a separate licensed type of service that constitutes professional and exchange activities in securities.

Due to the Instruction on the requirements for the conditions and procedure for the implementation of professional activities in securities, regulated Decree of Compliance of the Ministry of Finance of the Republic of Belarus dated August 31, 2016 No. 76 «On Regulation of the Securities Market», we disclose the local legal act on actions that regulates the conditions and procedure for performing work and provision of services to securities trustees.