8 April 2013
A decision was made to establish an investment fund, in which clients do not have to choose between funds with different focuses, as it is the task of our specialists who invest the fund’s capital on stock exchanges offering the best return across the world. Although the term ‘hedge fund’ does not officially exist in Estonia, our fund is a classical hedge fund, which means that we take long and short positions in equities, indexes, options, futures, currencies, and bonds.
23 August 2013
We submitted to the Financial Supervision Authority an application for the establishment of the fund. Pille Pettai, a sworn advocate, who is currently active in law firm TEDER, consulted us on legal matters during this process. We choose Interactive Brokers as the broker of the fund allowing us to work in 24 countries with 22 different currencies and trade on 110 stock exchanges. The created conditions enable us to earn our investors maximum profit.
21 February 2014
The Financial Supervision Authority issued the fund an activity authorisation and Swedbank AS was chosen as the fund’s depositary. This marked the beginning of our launch period and the objective was to ensure that not one requirement set by the Financial Supervision Authority, our depository, and broker goes unnoticed before we begin offering KRR fund services to our clients. During this trial period, we tested successfully all possible problems that the fund may experience in future, as well as legal and other current problems that may arise in connection with starting up a business.
13 January 2015
Mart Schults joined the team as a member of the Management Board during the trial period.
14 July 2015
The management of the fund manager elected Mart Schults officially the fund manager and he took on the task of managing the fund after the end of the trial period on 31 December 2015.
1 January 2016
Our first year in business began and during this period we invested solely the fund owners’ capital without including external investors to check and test our skills and capabilities not to harm any clients.
As the incentive fee of our fund is 50% of return and profit earned per each share is paid out based on quarterly calculations within the calendar month following the end of a quarter, we decided to establish a new fund where fund shares can be redeemed once a month subject to an investor’s notice, otherwise all earned profit will be reinvested to grow the value of the fund’s shares. Consequently, we reduced the incentive fee for the new fund to 30% of return. To differentiate, we decided to use trademark KRR where the fund names KRR Fund USD (a share owner is made a payout of profit every quarter) and KRR Fund EUR (a share owner can liquidate an entire position or part thereof once a month subject to a notice and in accordance with the rules of the fund) are derived from.
5 September 2016
The rules of KRR Fund EUR were registered at the Financial Supervision Authority.
1 December 2016
KRR Fund EUR, the incentive fee of which is 30% and return earned on investments is reinvested monthly, allowing earning return on compound interest, began its operations. KRR Fund EUR suits investors that wish to invest long-term and grow the value of the fund’s share over time.
1 January 2017
In our first year, we achieved a return of 60.06% (official return confirmed by the Estonian Financial Supervision Authority and our depository Swedbank AS) in our KRR Fund USD; so we considered our first official year sufficiently successful and decided to offer other interested parties the opportunity to invest into our funds.