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NSEL 30 Index Fund
The First Lithuanian investment fund
Investment Variable Capital Company NSEL 30 indekso fondas
is a company which distributes the capital of
the shareholders and issues and redeems the shares from
them. NSEL 30 Index Fund can issue umlimited number
of shares. New investors are always issued new shares of
the fund. The shareholder can require the investment fund
to redeem its shares at any time at the price of the day.
The share of NSEL 30 indekso fondas is a portfolio of 30 stocks of the biggest
Lithuanian companies (by marketcap) traded in National Stock
Exchange of Lithuania in Official and Current Lists. The
trades of these companies can be every day.
If you invest in Lithuania you can buy the shares of every
one of 30 companies by separate transactions. However, if
you acquire a share of the fund you get the portfolio of
the 30 companies. This way you diversify your portfolio
(an investment that holds 30 securities of different companies
and industries is likely to be less volatile than a less
diversified portfolio composed of smaller number of shares)
and you save your money on transactions (you only pay the
fee on buying the share of the fund).
NSEL 30 Index is the index which reflects the
value of the portfolio. It's construction is based on the
free float marketcap.
NSEL 30 Index is rebalanced every quarter by changes of
shares outstanding, the free float, and certain liquidity
requirements. This index reflects almost the full Lithuanian
investable market (i.e. the liquid portion of the market)
because the "float" actually means which portion of the shares is actually available for public trading.
The calculation of the NSEL 30 Index was started on March 31, 2000. This
is the index showing the actual performance of the portfolio
including the broker commissions and all the dividends (paid
out by companies) reinvested.
Theoretical historical performance of NSEL 30 Index was calculated back to 12/31/96.
Marketcap
is calculated using the formula:
Marketcap = Number of shares outstanding x Last price traded
"Free float"
means the
number of "free" shares available to buy in the
market. That means we subtract the shares owned by government
or strategical investors because they usually don't sell
their shares to public.
The price of the share of the Index Fund
is equal to net asset value per share of the Investment
Variable Capital Company NSEL 30 Indekso Fondas.
The price of the share of the Fund is calculated every day
and will be published in the Fund's website www.indexfund.lt.
Private Corporation Investicijø portfeliø valdymas is the management company of NSEL 30 indekso fondas.
It's purpose is to manage the portfolio of the
fund by buying and selling the shares on behalf of the fund
and to the fund; to advertise; to make fund's accounting;
to prepare financial accounting reports; to manage the fund's
taxes; to calculate and publish the price of the share of
the fund every day.
The main distributor of the shares of the fund, the custodian
and the personal share accountant is a Joint-Stock Company
Vilniaus bankas.
