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Commercial bank Center Invest is the first market maker to support quotations of shares of real-estate investment fund Arsagera-Housing Development on the MICEX Stock Exchange. The Exchange launched the institution of market makers in order to increase the liquidity of the market for shares of investment funds, reduce the fluctuation of their quotations and improve the attractiveness of investments in stock-market assets for individual and corporate investors.
Under the agreement concluded with the MICEX Stock Exchange, Center Invest Bank gets the status of official market maker on the MICEX SE. In the course of the trading session (except for quotation breaks), the Bank is obliged to enter orders and support two-side quotations of shares of closed-end real-estate investment fund Arsagera-Housing Development under the management of Arsager Management Company (state registration number of the rules of trust management 0402-75409534, trading code RU000A0JC5V1).
Closed-end investment funds enable to make long-term investments (in compliance with the RF legislation, from one to fifteen years with possible prolongation). Thus, the law provides the possibility of using investment funds for the implementation of long-term investment projects or chains of interconnected investment projects. Due to the long-term nature of investment funds, investors can sell their shares to other investors on the secondary market only (or through exchanges, if the management company decides to admit shares to exchange-based trading).
The existence of a market maker for Arsagera-Housing Development makes it possible for investors to buy or sell shares of this investment fund on any trading day. An investor can do it by addressing any participant in trading on the MICEX SE. The market maker’s duty is to support prices at which a participant in trading is able to satisfy his client's buy or sell orders.
The real-estate market is one of the most dynamic and diverse sectors of the Russian economy. Prices on this market demonstrate much lower volatility compared to the stock market. When buying shares of real-estate investment funds and thus investing in real estate, investors deal with very reliable assets. The presence of market makers, encouraging the exchange-based trading is shares, creates additional possibilities for investors.
Background:
Center Invest, the largest bank in Southern Russia, was established on 26 November 1992. It holds the General License of the RF CB #2225 of 26 January 1998. Center Invest provides a wide range of services to companies, organizations and the population of the South of Russia, which satisfy international standards and are based on up-to-date technologies. Since 7 December 2004, Center Invest has participated in trading on the MICEX Stock Exchange. Stockholders of Center Invest include European Bank for Reconstruction and Development (EBRD), Deutsche Entwicklung Gesellschaft (DEG) and RLB Oberoesterreich. The Bank’s partners are International Finance Corporation (IFC), KfW, United State Agency for International Development (USAID) and other leading banks and financial organizations. Center Invest is the largest regional bank in the Rostov Region. It accounts for more than one third of local banks' total capital and over 40% of assets, loans and deposits. Center Invest is one of Russia’s 100 largest banks.
Arsagera Management Company provides different investment solutions on the stock market. When preparing customized investment solutions for its clients, Arsagera develops unique strategies of capital management based on customers’ investment preferences and their tolerance to investment risks. Arsagera manages two closed-end investment funds, Arsagera-Housing Development and Favorit, interval fund Arsagera-Stocks and two open-end funds, Arsager – Equity Fund and Arsagera - Mixed Investments Fund.
