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Investment Management Agreement

(hereinafter referred to as the “Contract“)

made on the date below between

Comfort Zone Investments, osoba rizikového kapitálu, a.s. , with registered office at Sokolovska 428/130, 186 00 Prague 8, Czech Republic, Company ID 09040927, registered in the Commercial Register maintained by the Municipal Court in Prague, Section B, Insert 25191,

E-mail: info@comfortzoneinvestments.com

Bank account: CZ8255000000002127766002

Swift Code: RZBCCZPP

Represented by Ing. Petr Tmej, board member

Correspondence Address: Ing. Petr Tmej, Barvitiova 934/4, Prague 5 158 00, Czech Republic

 

(hereinafter referred to as the “Manager“)

 

and

Name, Surname: ............................................................

Date of Birth: ............................................................

Place of Birth: ............................................................

ID/passport number: ............................................................

Issued by: ............................................................

Validity until: ............................................................

Permanent Residence: Street + No.: ............................................................

Municipality + Postcode: ............................................................

Country of Permanent Residence: ............................................................

Nationality: ............................................................

Bank account IBAN, SWIFT Code: ............................................................

Phone: ............................................................

E-mail: ............................................................

 

Correspondence Address (only if different from your Permanent Address)

Residence - Street + No.: ............................................................

Municipality + Postcode: ............................................................

Country: ............................................................

 

(hereinafter referred to as "Client")

(The Manager and the Client are hereinafter also referred to individually as "Party" or jointly as "Parties")

Manifestation of the will of the contracting parties

  1. In accordance with Section 1746(2) et seq. of Act No. 89/2012 Coll., the Civil Code, as amended (hereinafter referred to as the "Civil Code"), the Parties hereby enter into this Investment Management Contract, which includes:

    1. Annex 1 - Investment Strategy - COMFORT ZONE INVESTMENTS,

    2. Annex 2 - Terms and Conditions of Comfort Zone Investments a.s.,

    3. Annex 3 - Fee Schedule,

    4. Annex 4 - Information for clients, and

    5. Annex 5 - Information on the processing of personal data

    6. Annex 6 – Disclosure of Key Information

    7. Annex 7 – AML Questionnaire

    8. Annex 8 - Information on the processing of personal data of Comfort Zone Investments a.s.

  2. All capitalized terms shall have the meaning defined in the Terms and Conditions unless otherwise specified elsewhere in this Contract.

3. Subject of the Contract

  1. The subject of this Contract is the provision of collective fund management services within the meaning of Section 15(1) of the ZISIF.

  2. By entering into this Contract, the Client entrusts the Manager with the management of the Investment (as defined in the Terms and Conditions).

  3. The Manager undertakes to manage the Investment for the Client on the basis of the Investment Strategy, which the Manager has made known to the Client and which forms part of this Contract, and on the terms and in the manner hereinafter set out in this Contract and the Terms and Conditions.

  4. The Manager is entitled to a fee for managing the Investment. The Client is obliged to pay the Manager a fee for the management of the Investment in accordance with the Fee Schedule.

 

4. Statement

  1. The Client hereby declares that

    1. before signing the Contract, he/she has familiarized himself/herself with its wording and all attachments, in particular the Terms and Conditions, the Investment Strategy, the Fee Schedule and the Client Information;

    2. if the Contract is concluded remotely, received information pursuant to Section 1843 of the Civil Code prior to the conclusion of the Contract, including a notice of the impossibility to withdraw from the Contract within the meaning of Section 1847 of the Civil Code;

    3. is aware that the activities of the Manager are not supervised by the CNB;

    4. become familiar with and understand the Investment Strategy;

    5. agrees to the manner of changes in the content of the Contract, including changes to the Terms and Conditions and the Fee Schedule;

    6. is aware of its liability for any untruthfulness, incompleteness or inaccuracy of its representations in this Contract and undertakes to notify the Manager promptly in writing if any such representations continue to be untrue, incomplete or inaccurate in any respect or if there is any change in such representations;

    7. has the legal capacity to enter into the Contract and to exercise the rights and obligations arising therefrom;

    8. by entering into the Contract, exercising its rights and performing its obligations under the Contract, it does not violate the law or any obligations to which it is bound;

    9. is unaware of the existence or threatened existence of any circumstances, such as legal, administrative or other proceedings, which may prevent it from fulfilling its obligations under the Contract;

    10. the funds to be used for the Investment are not derived from criminal activity or used to finance terrorism;

    11. if the funds used for the Investment fall within the community asset of the spouses, the consent of the other spouse has been given to the conclusion of the Contract and the making of the Investment;

    12. is aware that the Manager may execute trades in different currencies and that investments in other currencies carry exchange rate risk and may also reduce the Value of the investment to be paid by currency conversion costs;

    13. agrees that negotiations between the Parties may also be conducted by electronic or other technical means, enabling the content of the negotiations to be captured and the person acting to be identified The Client also declares that the e-mail address and mobile phone number provided by the Client in the Contract are the address and number that the Client uses and is entitled to use for his/her personal use within the scope of this Contract;

    14. is aware that an investment in Investment Instruments and other assets is subject to risks, that past performance is not indicative of future returns and that the value of Investment Instruments and other assets may fluctuate over time, as a result of which the return on the Investment is not guaranteed;

    15. acknowledges the possibility of a reduction in the value of its Investment;

    16. understands that the Manager is not obliged to take into account the Client's tax circumstances in the performance of the Contract and that the transactions carried out may affect the Client's tax obligations;

    17. agrees that the Manager shall be entitled to proceed and unilaterally set off any claims against the Client under this Contract;

    18. understands that the Manager is liable for damages caused by a breach of its obligations under the Contract only if caused by grossly negligent or intentional conduct.  The Trustee shall not be liable for damage caused by force majeure;

    19. understands that the Manager is entitled to delegate the performance of its obligations under this Contract to third parties. In selecting them, the Manager is obliged to act with professional care. However, the Manager shall not be liable for damages caused by any third party used to perform its obligation;

    20. entrusts the Investment to the Manager and understands that it is a collective asset management as defined in the Terms and Conditions below, with all its consequences;

    21. acknowledges that the Controller processes his/her personal data for the purpose of performance of this Contract and for the purposes of the Controller's legitimate interests and that more information on the collection and processing of personal data can be found in the Information on personal data processing;

    22. all statements under this Article of the Contract are made expressly.

 

5. Other arrangements

  1. The Parties have agreed that all rights and obligations not expressly provided for in this Contract shall be governed by the Terms and Conditions and the Fee Schedule.

  2. The Manager is entitled to unilaterally change the Terms and Conditions. The Manager shall notify the Client of a change to the Terms and Conditions by e-mail at least three months before the date of the legal effect of the change. The Client is entitled to reject the change of the Terms and Conditions and to terminate the Contract for this reason with a notice period of 30 (thirty) calendar days.

  3. If the Manager does not receive a notice of termination of the Contract no later than on the effective date of the change to the Terms and Conditions, then the Client shall be deemed to have accepted the change.

  4. In the event of a change to the Terms and Conditions, all Investments after the changes become effective shall be governed by the new version of the Terms and Conditions. For the avoidance of doubt, any individual regular Investments made or to be made shall also be governed by the new version of the Terms and Conditions.

  5. The Manager is entitled to unilaterally change the Fee Schedule. Articles 5.2 to 5.4 of the Contract shall apply mutatis mutandis.

  6. The minimum initial investment is at least the equivalent of .....................

 

6. Duration and Termination of the Contract

  1. The Contract is concluded for an indefinite period.

  2. The Contract can only be terminated by:

    1. by written agreement of the Parties;

    2. by written notice from either Party as follows:

      1. if the notice is delivered to the other Party by the 20th day of the calendar month: with a notice period of 20 (twenty) calendar days from the first day of the following month;

      2. if the notice is delivered to the other Party after the 20th day of the calendar month: with a notice period of 50 (fifty) calendar days from the first day of the following month;

    3. by withdrawing from the Contract for reasons pursuant to Section 2002 of the Civil Code;

    4. by withdrawing from the Contract for the reasons set out in the Terms and Conditions, in particular in Article D.6.

  3. The Parties agree that withdrawal, termination, or other termination of the Contract shall not affect the validity and effectiveness of the disbursement of invested funds provisions of Section E. Terms and Conditions for reasons based on the nature of the assets in which the investment will be made.

  4. The Client is not entitled to withdraw from the Contract for reasons and under the terms of Section 1829 of the Civil Code (withdrawal from a contract concluded by distance), with reference to Section 1837(b) of the Civil Code (delivery of goods or services whose price depends on financial market fluctuations).

7. Final provisions

  1. The Client authorizes the Manager to take all legal actions necessary to perform this Contract on behalf of the Client.

  2. The Client undertakes to issue the Manager with a written power of attorney upon the latter's request without undue delay if required for the performance of this Contract.

  3. The Contract may be amended only by written amendments signed by both Parties. Article 5 of the Contract shall not be affected thereby.

  4. This Contract shall be governed by Czech law.

  5. The Parties agree that the courts of the Czech Republic shall have exclusive jurisdiction to settle disputes arising out of this Contract.

  6. The Contract shall be signed in two copies, one of which shall be given to the Client and one to the Manager.

  7. The Contract shall come into force upon signature by both Parties and shall become effective on the date on which the first Investment is credited to the Bank Account of the Manager by the Client.

 

In..... on.....

 

...................

Signature of the Client

In..... on.....

...................

Signature of the Manager

 

List of attachments:

Annex 1 - Investment Strategy - COMFORT ZONE INVESTMENTS

Annex 2 - Terms and Conditions of Comfort Zone Investments a.s.

Annex 3 – Fee Schedule

Annex 4 - Information for Clients

Annex 5 - Information on The Processing of Personal Data

Annex 6 – Key Information Document

Annex 7 – AML Questionnaire

Annex 8 - Information on the processing of personal data of Comfort Zone Investments a.s.

 

Annex 1 Investment strategy

General description, investment method, and risk allocation rules

The investment strategy is based on the principle of trading stock titles on stock exchanges in the USA, Europe, Asia or Australia in the following forms:

(a) In the form of buying and selling a diversified basket of Exchange Traded Funds (ETFs); and

b) In the form of the purchase and sale of a diversified basket of selected stock titles with historically high market capitalizations that, in the opinion of the Manager, are at a favorable price level; and

(c) The Manager will utilize long (long) and short (short) trading of stocks and ETFs as market opportunities arise.

d) Futures Trading

e) CFD Trading

The objective is to provide the Client with a sufficiently diversified portfolio that will seek to protect the Client's funds in the first instance. The proportion of equity investments in these different forms - i.e. a), b), c), d), e) - will be determined by the current situation on the world markets.

Currency of the fund

USD

Main asset categories

The main asset category will be stocks and ETFs, currency hedging instruments (currency forwards or futures)

Industry, geographic and market sectors and specific asset classes

Geographical focus will be on the US, Europe and Asia.

Sector-blended strategy. All available equity sectors will be traded - Basic Materials, Conglomerates, Consumer Goods, Financials, HealthCare, Industrial Goods, Services, Technology, Utilities and others.

 

Investments will be made in the following assets: securities admitted to trading on a regulated market, multilateral trading facility or similar market in a third country: shares, ETFs, bonds; additionally, participation and other forms of ownership in Czech unlisted companies and the provision of loans, borrowings and other forms of lending to Czech unlisted companies, including promissory notes; currency hedging instruments, in particular currency forwards, futures or CFD.

Policy for loans and other leverage

Leverage will be used as follows:

(1) By accepting a loan or borrowing to facilitate a trade in an investment instrument in which the lender participates ("margin trading");

(2) by accepting a foreign currency loan or borrowing; and

(3) investing in derivatives according to an investment strategy (futures trading, CFD trading to hedge currency risk)

The leverage ratio calculated in accordance with Commission Delegated Regulation (EU) No 231/2013 shall not exceed 5:1. The actual leverage ratio may be limited by ESMA's decision on product intervention.

Investment horizon

The recommended investment horizon is at least 5 years.

Annex 2  Terms and Conditions 

A.General provisions

  1. These Terms and Conditions of Comfort Zone Investments a.s. ("Terms and Conditions") govern the rights and obligations of the Parties in the administration of the Investment (as specified below) by the Manager. The Investment Management Contract shall take precedence over the Terms and Conditions.

  2. The Manager is a person registered with the Czech National Bank as a "Person referred to in Section 15(1) of the ZISIF Act", i.e. a person performing asset management comparable to asset management as defined in Section 15(1) of Act No. 240/2013 Coll., on Investment Companies and Investment Funds, as amended (hereinafter referred to as "ZISIF"). Thus, the Manager is authorised to manage assets consisting of funds or valuables collected from or acquired with such funds or valuables from third parties (clients) for the purpose of co-investing them on the basis of a defined strategy for the benefit of such clients.

  3. The trustee is only registered with the Czech National Bank ("CNB") in the relevant list. The CNB does not supervise the Manager.

  4. The Manager is obliged to manage the Investment in accordance with the Investment Strategy.

  5. The Manager is not responsible for the development of the market value of the assets of the investment instruments and other assets in which it has placed the Investment and the returns thereon. The Client acknowledges the possibility of a decrease in the value of its Investment. The Client further acknowledges that the Manager shall not be liable for any depreciation in the value of the Investment or for any appreciation less than the expected return. Therefore, the Client shall have no claims against the Manager in this respect, in particular, the Client shall not be entitled to compensation for damages.

  6. Past returns on the Investment do not guarantee future returns.

  7. The value of the investment for redemption (as defined below) is dependent on the market price performance of the assets and investment instruments in which the Manager has placed the Client's Investment.

  8. The Client agrees to pay the Manager a fee for its services under this Contract in accordance with the Fee Schedule.

 

B. Definition of some terms

  1. For the purposes of the Contract and the Terms and Conditions, the following terms, which are capitalized, shall have the following meanings:

    1. "Manager's Bank Account" means a cash account maintained with a bank or other financial institution with an appropriate license, as specified in the Contract or notified to the Client in writing by the Manager, for the purpose of receiving funds from the Client;

    2. "Total Investment Appreciation" means the difference between the amount of the Investment and the Value of the Investment to be paid out;

    3. "Investment Value" means the total value of the Investment as of the Valuation Date.

    4. "Payout Value" means the value of the Investment as at the last Valuation Date to be paid by the Manager to the Client pursuant to a Payout Instruction or upon termination of the Contract; for the avoidance of doubt, the Payout Value is the amount already less fees as set out in the Fee Schedule;

    5. "Personal Data Processing Information" means a document containing information on the processing of personal data by the Manager in accordance with the relevant legislation, The Personal Data Processing Information was provided to the Client upon signing the Contract and is also available at the Manager's registered office;

    6. "Investment" means all Client funds entrusted to the Manager under the Investment Management Contract;

    7. "Investment Strategy" means the Manager's plan for allocating the Investment to various investment instruments and other assets as further specified in Annex 1 to the Contract;

    8. "Assets under management" means the market value of the aggregate of all clients' investments in the Investment Strategy;

    9. "Costs" means fees paid by the Manager to third parties in connection with the provision of services to the Client under this Contract (e.g., transfer point fees, funds transfer fees, legal and other services related to asset acquisitions, asset acquisition costs, cash handling or currency conversion costs). Costs are not operating costs of the Manager (e.g., payroll costs, general operating costs);

    10. "Valuation" means the calculation of the market value of all assets and cash managed by the Manager under the Investment Strategy and the subsequent use of that value to determine the Investment Value;

    11. "Payout Instruction" means a Client's instruction under which and in accordance with the agreed rules, the Manager will pay the Investment Value to be paid out or any other (lower) amount specified in the instruction without cash to the Client's bank account specified in this Contract;

    12. "Fee Schedule" means the document governing the amount of the Manager's fee for services provided under this Contract; the Fee Schedule is contained in Exhibit 3 to the Contract.

 

C. Communication between the Parties, delivery

  1. The Client expressly agrees that the written form is maintained even in the case of actions taken by electronic or other technical means that allow the content of the action and the identification of the person acting (e.g. e-mail communication) to be captured.

  2. Delivery shall be made to the addresses of the Parties set out in the header of this Contract.

  3. In the event of a change in contact or payment details, the Party shall notify the other Party in writing of the new contact or payment details within five working days of the change.

  4. If there is any doubt as to the identity of the person acting, the Manager is entitled to request from the Client any action in documentary form bearing the officially certified signature of the Client. Such action shall only be effective against the Manager upon delivery of the relevant document bearing a certified signature.

  5. The Manager shall not be liable to the Client or any other person for any loss or damage arising from the fact that a document which the Manager, in good faith and in the exercise of such level of care as is customary in the Manager's business, believed to be genuine or issued by the Client or a person authorised to represent the Client, contained defects or was not genuine.

  6. The Client shall be obliged to submit to the Manager in writing any inaccuracies detected in the documents received from the Manager within fifteen days from the date of delivery of the document. In the event of the expiration of this deadline, the document shall be deemed to have been approved by the Client.

 

D. Investment Management Rules

  1. The investment can be one-off or recurring. In the case of a recurring investment, the total value of the funds entrusted by the Client is considered to be the Investment.

  2. The Client's Initial Investment is a one-time investment (hereinafter referred to as the "Initial Investment") with the Manager allowing the Client to make subsequent Investments (hereinafter referred to as the "Subsequent Investment"). The Manager will always inform Clients in advance of the time period in which it will allow Clients to make an Initial Investment or Subsequent Investment. 

  3. The minimum amount of the Initial Investment is EUR 125.000,- or equivalent in another accepted currency. The Client is entitled to make a higher Initial Investment.

  4. The minimum amount of the Subsequent Investment is EUR 1.000,- or equivalent in another accepted currency. The Client is entitled to make a higher Subsequent Investment.

  5. The decisive date of receipt of the Investment is the date on which the funds are credited to the Bank Account of the Manager. If the funds are credited to the Manager's Bank Account before the Manager receives the executed Contract, the record date for receipt of the Investment shall be the date on which the Contract is delivered to the Manager.

  6. The Client shall make the Initial Investment within five Business Days of entering into this Contract unless otherwise agreed in writing by the Manager. Otherwise, the Manager shall be entitled to withdraw from this Contract.

  7. The Investment shall be disposed of by the Manager only from the Valuation Date following the date of receipt of the Investment. For the avoidance of doubt, funds credited to the Manager's account between the preceding Valuation Date and the next following Valuation Date (inclusive) shall be valued on that next following Valuation Date and shall be managed by the Manager from that next following Valuation Date under the Investment Strategy.

  8. The Manager is entitled to refuse the Initial Investment in part, in particular in the event of an imminent overrun of the applicable limit specified in the ZISIF.

  9. The Trustee shall be entitled to reject the Subsequent Investment.

  10. The trustee buys and sells assets with the funds entrusted to it in order to increase their value.

  11. In managing the Investment, the Manager shall exercise its discretion. The Manager is obliged to respect the Investment Strategy and to act with professional care when managing the Investment.

  12. The investments of all clients within the Investment Strategy are invested together (collective asset management).

  13. The Client acknowledges that the Manager is not a securities dealer, investment intermediary or other licensed person. The Manager does not provide investment services on an individual basis. Accordingly, the Client is not authorized to instruct the Manager on how to dispose of the Investment, except for a Disbursement Instruction. During the time the Investment is managed by the Manager, the Client has no dispositive authority over the Investment.

  14. The Trustee shall pay the Costs associated with the provision of services under this Contract out of the Assets under management.

  15. The Manager is not obliged to bill the Client for the Costs.

  16. The trustee is entitled to delegate certain tasks to third parties, including activities involving collective asset management. The delegation is possible only if the following conditions are met:

    1. the mandate must not prevent the Manager from acting in the best interests of investors;

    2. The assignment was preceded by a careful selection;

    3. The trustee shall not grant a delegation to the extent that it delegates the actual responsibility of senior management;

    4. The Manager must be able to control the activities of the delegated person; and

    5. The manager must recognise and avoid potential conflicts of interest and, where this is not possible, address them in order to prevent them from adversely affecting the interests of investors.

  17. The value of the Investment is determined in US Dollars (USD). The payment of the Investment will always be made in US Dollars (USD) or in any other currency that the Client and the Manager expressly agree upon. In such case, the Client bears the exchange rate risk and currency conversion costs.

 

E. Informing about the Investment

 1.The Client agrees that information about the Investment will be delivered to the Client exclusively through the Client Zone on the website www.comfortzoneinvestments.com, including information about the Investment Value and the Valuation, as well as information about changes to the Terms and Conditions and the Fee Schedule and other information and documents.

 2.The Manager informs the Client about the Investment on a daily basis.

F. Disbursement of Investment

  1. The Client is entitled to submit a Disbursement Instruction, subject to the conditions set out in this Article F.

  2. Subject to the rules set out in Article F.1, the Client is entitled to request by a Withdrawal Instruction the payment of only

    1. the entire Investment Value to be paid; or

    2. lump sums greater than USD 1.000,- and at the same time less than the Value of the investment to be paid out, only so that the Value of the investment to be paid out does not actively fall below the equivalent of EUR 125.000,-, unless the Client agrees otherwise with the Manager.

  3. The instruction to pay out must be in writing and must be marked with the Client's name, date, Client's signature and whether all or part of the Investment Value is to be paid out, otherwise it is invalid.

  4. The Value of the investment to be paid out will be equal to the Value of the investment according to the Valuation closest following the date on which the Client requested the payout, less applicable fees.

  5. The Trustee shall make payment to the account specified in the header of this Contract or to an account notified to the Trustee in accordance with Article C.3.

  6. If the Payment Instruction is received by the Manager by the twentieth (20th) day of the calendar month, the Manager will make the payment pursuant to the Payment Instruction in question within twenty (20) calendar days after the Valuation closest to the date on which the Client requested the payment. Disbursement Instructions received by the Manager after the twentieth (20th) day of a calendar month will be paid by the Manager within twenty (20) calendar days after the Valuation relating to the following month.

  7. The Trustee may suspend payments under the Disbursement Guidelines for a maximum of one (1) year if necessary to protect the rights or legally protected interests of investors. The decision to suspend a payout shall be made by the statutory body of the Manager and the Manager shall prepare a record of the decision, specifying the date and exact time of the decision, the reasons for the suspension, the point in time from which the payout is suspended, whether the suspension extends to Payout Instructions already submitted, whether the effect of existing Payout Instructions continues after the suspension ends (or whether a new Payout Instruction must be submitted), and the period for which the payout is suspended. The Manager shall inform the Client of the decision made. The Client shall not be entitled to interest on late payments during the period of suspension.

  8. The Trustee is limited by law to the maximum amount of Assets under management, i.e. the Trustee is not entitled to exceed the applicable limit defined in the ZISIF. If the volume of Assets under management equals or exceeds ninety percent of the applicable limit, the Trustee shall immediately, and no later than within thirty (30) calendar days, ensure that the applicable limit is not exceeded. In such a case, the Manager may, in particular, make a partial payment of the Investment Value in proportion to the Investment Value of each investor.

 

G. Calculation of the Investment Value

  1. The valuation will be carried out at the end of each day. The calculation of the Investment Value shall always be made by the Manager without undue delay after the Valuation.

  2. The Manager uses the following formulas and calculations to calculate the Investment Value:

    1. Value of investment at the beginning of the quarter

plus Value of all trades closed in the quarter

plus Value of open trades at the end of the quarter

plus Value of dividends (Withholding tax included) at the end of the day

minus Broker's fees for the quarter (third party, which Manager have no influence on)

minus Management Fee, which is explained in Annex 3,

minus Performance Fee, which is explained in Annex 3.

  1. The asset will be measured at fair value.

  2. Debts will be measured at fair value.

 

H. Revenue and payment of revenue

  1. The Manager cannot and does not guarantee the appreciation of the Investment or the amount thereof. Past returns do not guarantee future returns.

  2. The Manager does not pay dividends or other interim distributions to clients, except in the case of a Payout Instruction. Profits are reinvested.

 

I. Fees

  1. The Manager is entitled to a fee for the performance of its activities under this Contract in accordance with the Fee Schedule, namely a Performance Fee, which is dependent on the Manager's performance in increasing the value of the Investment, and Management Fee.

  2. The Performance Fee may be deducted by the Manager (a) at the end of each day and (b) on the relevant Valuation Date in respect of the funds subject to a Disbursement Instruction and (c) on the date of the Subsequent Investment, but only in each case if the conditions under the Fee Schedule are met.

  3. The Management fee is deducted quarterly after the regular Valuation, i.e. 4 times a year on the first trading day of February, May, August and November of the calendar year.

 

J. Efficiency

  1. These Terms and Conditions become effective on 1st January 2022

Annex 3 Fee schedule 

 

Entry Fee: 0%

Exit Fee: 0 %

Management Fee: First year free of charge, after first year 1% p.a., charged quarterly, i.e. on the first trading day of February, May, August and November of the calendar year

Performance Fee: 20% of the return, charged daily on the Value of the investment based on the high water-mark principle (when the client's assets surpass their highest ever market value)

Asset record keeping: Free of charge

Client zone with daily reports: Free

Bank transfer to a CZK account in the Czech Republic: Free of charge

Bank transfer to an account in the Czech Republic in USD: According to the bank's tariff

Bank transfer to an account in the Czech Republic in EUR: According to the bank's tariff

Bank transfer to a broker's account in CZK: According to the bank's tariff

Bank transfer to broker's account in USD: According to the bank's tariff

Bank transfer to broker's account in USD: According to the bank's tariff

 

 

Management Fee = Rate (1% / 4) * Value of investment as of Valuation date

Performance Fee = Rate (20%) * (Value of the investment as at the Valuation Date - Value of the investment as per the Valuation at the time the performance fee was last payable). The fee is charged on a daily basis.

 

The current valuation of the property and the highest historical Value of the investment according to previous Valuations (high water-mark principle, HWM) are relevant for its calculation. The fee is calculated separately for each subsequent investment of the client. The lowest permissible fee amount is CZK 0.

Annex 4 Information for Clients

 

A. Assets and investment instruments

The Manager places the Investment in the following assets:

a) Shares

is a security or a book-entry security with which the rights of a shareholder as a shareholder to participate in the management, profit and liquidation balance of a joint-stock company according to the law and the articles of association of the company are connected.

b) Futures

is a financial contract in which two parties agree to exchange a specified quantity of a financial asset (e.g. foreign currency) or commodity (e.g. crude oil) at a predetermined time for a predetermined price.

c) CFD

A contract for differences (CFD) is an arrangement made in financial derivatives trading where the differences in the settlement between the open and closing trade prices are cash-settled. There is no delivery of physical goods or securities with CFDs.

 

d) Forward

A currency forward is a binding contract in the foreign exchange market that locks in the exchange rate for the purchase or sale of a currency on a future date.

2) Classification of Investment Strategies into groups according to risk-return profile

The value of an investment can go down as well as up. There is no guarantee of a return on the amount originally invested. Classification in the relevant group is subject to change. Even a classification in the least risky group does not mean a risk-free investment.

3) Risks of investing

Potential clients should pay close attention to the risks associated with investing before deciding to entrust their investment to the Manager.

a) Basic notice

There can be no assurance that the value of the assets and investment vehicles will increase in the future or that the anticipated investment objectives will be achieved. The value of the assets and investment instruments and the returns thereon may go down as well as up over time and it is possible that the Client may not recover the full amount invested. Therefore, only those persons who are financially able to bear any loss should make the Investment.

b) Basic types of risks:

I) Credit risk (insolvency)

Credit risk is the risk of insolvency of the Manager or any person involved in the management of the Investment.

ii) Risk of insufficient liquidity

The extent of the Manager's ability to convert assets, particularly into cash, in extreme and crisis situations may be limited by the nature of those assets. The liquidity of individual assets and investment instruments is affected by changes in supply and demand.

iii) Settlement risk

It represents the non-delivery of the purchased assets by the counterparty or the non-payment or delay of the transaction.

iv) Market risk (supply and demand risk)

Risk of loss of invested funds due to adverse movements in market prices and rates. Asset prices are affected by changes in supply and demand caused by a number of factors, including the expectations of market participants.

v) Operational risk

Operational risk is the risk of loss of assets resulting from inadequate or faulty internal processes of the Manager and persons involved in the management of the Investment, from failure of operational systems or human factors, or from external events.

vi) Concentration risk

Concentration risk arises from the possible concentration of collectively managed assets in a particular type of investment so that the invested funds are not sufficiently diversified.

vii) Risk of foreign markets

Foreign investments and investments with a foreign element may be exposed to foreign market risks. The potential gain or loss on transactions executed in foreign markets or in foreign currencies will be affected by movements in the exchange rates of the respective currencies.

viii) Currency risk

Currency risk is the fact that the value of an investment denominated in USD may be affected by changes in foreign exchange rates. In the case of transactions in investment instruments and assets that are denominated in a currency other than USD, a movement in the exchange rate may have both a positive and negative impact on the gains or losses on such a transaction.

ix) Interest rate risk

Interest rate risk is a type of market risk. It is the risk of changes in interest rates.

x) Regulatory/legal risk

All investments are exposed to regulatory and legal risk. Regulatory and legal changes may result in a reduction in profits or loss of invested funds.

Changes in certain areas (e.g. tax laws and regulations) can significantly affect the profitability of an investment. Legal and regulatory risks are unpredictable and depend on many political, economic and other factors.

The Manager is not subject to the supervision of the Czech National Bank.

xi) Risk of losing the entire investment

Investing involves the risk of losing the invested funds. There is also the possibility of losing the entire investment.

xii) Leverage effect

Leverage is the use of a small amount of equity capital supplemented by a much larger amount of foreign capital to finance an investment. The use of leverage increases both the potential return on the investment and the risks.

Annex 5 Verification of the Client's identity and signature

If the identity has been verified by a member of the statutory body:

Mrs. Renata Tmejova, the board member of the Manager, confirms that she has verified the identity of the Client, or his representative, according to a valid identity document and the data specified in the Contract and the appearance of the Client, or his representative, agrees with the identity document. He/she declares that the Client or his/her representative has signed the Contract in his/her own handwriting.

Name, surname

 

Functions

 

 

Renata Tmejova

 

statutory director

 

 

Location

 

Date

 

Signature

 

 

If the identity has been verified by an authorised person:

I confirm that I have verified the identity of the Client, or his/her representative, according to a valid identity document and the information provided in the Contract and the likeness of the Client, or his/her representative, matches the identity document. I certify that the Client, or his/her representative, has signed the Contract in his/her own handwriting.

Name, surname

 

E-mail

 

Phone

Location

 

Date

 

Signature of authorised person

Annex 6 Disclosure of Key Information

Key Information Document (KID)

Purpose

This document provides you with key information about this investment product. It is not promotional material. The provision of this information is required by law to help you understand the nature, risks, costs, potential returns, and losses associated with this product and to compare it with other products

Product

Product name: COMFORT ZONE INVESTMENTS ("Product")

Product creator: Comfort Zone Investments a.s. ("Manager"), with registered office at Sokolovska 428/130, 186 00 Prague 8, The Czech Republic, ID No. 09040927, registered in the Commercial Register maintained by the Municipal Court in Prague, Section B, Insert 25191 (hereinafter referred to as the "Manager")

Manager's website: http://www.comfortzoneinvestments.com/

Tel: +420 725 404 694

Email: info@comfortzoneinvestments.com

Competent supervisory authority: The Manager is not subject to any supervisory authority. The Manager is registered in the list of persons carrying out asset management comparable to asset management pursuant to Section 15(1) of the ICIIF, maintained by the Czech National Bank (Na Příkopě 28, 115 03 Prague 1, www.cnb.cz).

What kind of product is it?

 

Type

The management of assets collected from investors for the purpose of joint investment on the basis of a defined investment strategy for the benefit of those investors.

​​

Objectives

The Comfort Zone Investments a.s. fund aims at long-term appreciation of investors' capital through publicly traded shares and other assets.

 

The philosophy of COMFORT ZONE INVESTMENTS is based on three basic pillars:

- Investing mainly in markets with high asset liquidity;

- Portfolio diversification;

- The long-term experience of the managers in asset management.

 

The primary focus will be on exchange-traded equities. The manager will use both long and short trading depending on market opportunities.

Other assets include exchange-traded funds (ETFs) and exchange-traded bonds.

Currency hedging instruments, which mainly include FX forwards, futures, or CFD, may also be used.

The currency of the product is CZK, USD, EUR according to the client's choice. The recommended investment horizon is 5 years.

Intended investor

The product is intended primarily for (a) persons who are declared by law to be qualified investors; (b) persons who are likely to invest more than the equivalent of

EUR 125 000 and who can be expected to understand the risks. Other persons may also invest in the Product, but regulatory restrictions on the distribution of the Product must always be respected.

The investment is not intended for investors with an investment horizon of fewer than 5 years and for investors without sufficient capital to ensure that any failure of the investment will not significantly jeopardize the investor's standard of living and the impact on the achievement of their financial objectives will not be significant.

 

Duration of the product

The activity of the Manager is not limited in time. The Investment Management Agreement between the Investor and the Manager is for an indefinite period of time and may be unilaterally terminated, commencing on the first day of the month following receipt of the notice. The investment horizon is set at a minimum of 5 years.

What risks am I taking and what return could I achieve?

Summary risk indicator

The risk indicator assumes that you retain the product for 5 years. The Aggregate Risk Indicator is a guide to the level of risk of this product compared to other products.

​The value of an investment can go down as well as up. There is no guarantee of a return on the amount originally invested. Classification in the relevant group is subject to change. Even a classification in the least risky group does not mean a risk-free investment.

It shows how likely a product is to lose money due to market movements or other factors.

 

1     2     3     4     5     6   

     Lower Risk      <            >      Higher Risk 

 

​We've ranked this product 7 out of 7, which is the highest risk class. This values the potential loss of future performance at a very high level and makes it very likely that the Product's performance will be affected by adverse market conditions. The value of the Product can go down and up significantly over time - the risk associated with the investment varies significantly with different holding periods. You may recover significantly less if you do not adhere to the investment horizon. The value of the investment may go down and up over time and the return on investment is not guaranteed. In extreme cases, the maximum loss may be the entire amount invested. The product does not hold any capital protection against potential market risk.

The aggregate risk profile does not include the following additional risks associated with an investment in the Product:

Operational risk, arising from potential shortcomings or failures of internal processes, human factors or failures due to external events. Settlement risk, representing the theoretical possibility that a transaction may not settle as expected, e.g. due to counterparty default.

Performance scenarios

This table shows the money you could recover over the next 3 years under different scenarios, assuming you invest a lump sum of 125,000 EUR

 

These scenarios illustrate how your investment could perform. You can compare them with other product scenarios.

The scenarios presented are an estimate of future performance based on past evidence of how the value of this investment varies and are not an accurate indicator.

What you get will vary depending on how the market performs and how long you keep the Product. The stress scenario shows what you could get back in an emergency market circumstances and does not take into account a situation where we are unable to pay you.

The figures include all the costs of the Product itself. The figures do not take into account your personal tax situation, which may also affect how much you get back.

Investment - How much could you get back.png

What happens if the Manager is unable to make a payout?

There is no guarantee of the return on the investment, any part of it or the yield on the investment. No guarantees are provided by third parties for the protection of investors.

 

What costs are associated with the investment?

The Impact on Return (RYI )shows the impact the costs issued will have on the investment return you could receive. Total costs take into account one-off, ongoing and incidental costs. The amounts shown here are the cumulative cost of the product itself over three different holding periods. They include potential early termination fees. The figures assume that you invest 125,000 EUR in one lump sum. These figures are estimates and may change in the future. The person selling or advising you on this product may charge you different costs. If so, they will provide you with information about these costs and explain the impact that any costs will have on your investment over time

Costs over time

Investment - Total Cost.png

Cost composition

The table below shows:
- the impact of different types of costs on the investment return you could earn at the end of the recommended holding period,
- the importance of different categories of costs.

This table shows the impact on return per year

Cost Composition.png

How long should I hold the investment? Can I withdraw money earlier?

Recommended minimum holding period: 5 years.  The length of the recommended holding period is related to the risk profile of the product, where riskier assets are subject to higher market fluctuations in the short term and thus the value of the investment may be negatively affected. Adherence to the horizon significantly increases the likelihood that the appreciation of the investment will be positive. Your investment in the Product is made for an indefinite period of time with the option of unilateral termination. The Product may only be terminated by: a) written agreement; b) written notice by either Party as follows: If notice is received by the other Party before the 20th day of the calendar month: with a notice period of 20 (twenty) calendar days from the first day of the following month; d)if notice is received by the other Party after the 20th day of the calendar month: with a notice period of 50 (fifty) calendar days from the first day of the following month;

How can I make a complaint?

You have the possibility to file a complaint or claim in the following ways:

(a) via the website: http://www.comfortzoneinvestments.com/

b) by email to: info@comfortzoneinvestments.com

The Manager aims to deal satisfactorily with any complaint or grievance. Complaints or claims should be made without undue delay from the time the investor has identified the grounds for the complaint or claim, particularly in order to allow for timely investigation and assessment of the circumstances. The investor is obliged to provide his/her identification data in the complaint or claim; for flexible handling, we also recommend providing telephone and e-mail contact details. Furthermore, it is necessary to describe the case to which the complaint or claim relates and to provide all relevant documentation. The Administrator's goal is to resolve each complaint or claim satisfactorily. Complaints or claims should be made without undue delay from the time the investor has identified the grounds for the complaint or claim, particularly in order to allow for timely investigation and assessment of the circumstances. The investor is obliged to provide his/her identification data in the complaint or claim; for flexible handling, we also recommend providing telephone and e-mail contact details. Furthermore, it is necessary to describe the case to which the complaint or claim relates and to provide all relevant documentation.

 

Other relevant information

Documents to which the investor (client) is entitled by law: contractual materials, key information notices Documents/information available beyond the law that are available to the investor - can be obtained on request: Any other information that is relevant to your contract. Additional information can be obtained via the website http://www.comfortzoneinvestments.com/, by telephone or in writing using the contact details already provided.

Annex 7 AML questionnaire

Queries pursuant to Act No. 253/2008 Coll., on certain measures against the legalization of the proceeds of crime and the financing of terrorism:

 

Name and surname: ..........................................................................................................................................

Date of birth: ..........................................................................................................................................

(hereinafter referred to as "Client")

Are you a politically exposed person?

☐ No                  

☐ Yes

and if YES, what is the basis for such classification: ..................................................................

What is the main source of your income?

☐Employment (dependent activity)

                              Name of employer: ..................................................................

                              Job title: ..................................................................

☐Income from holding property (rental property, etc.)

                              Entity owning the property: ..................................................................

                              Property location (city): ..................................................................

☐Business .................................................................. (specify industry)

                              Place of business: ..................................................................

                              Business Name: ..................................................................

                              TAX ID: ..................................................................

☐ Income from capital assets

Type of investment instruments owned (e.g. stocks, bonds, etc.):

..................................................................

                              Name of the financial institution holding your capital assets: ..................................................................

☐Other .................................................................. (please specify)

What is your net annual income?

☐Up to 100 thousand EUR. CZK 100,000

☐Up to 500 thousand. CZK

☐Up to 1 mill. CZK

☐up to 3 million CZK

☐above CZK 3 million CZK

 

What is the size of your assets, including liquid assets (cash, bank deposits, pension products, building savings, etc.), investments (collective investment securities, shares, bonds, investment properties and other investments) and real estate?

☐Up to 100 thousand. 

☐Up to 500 thousand CZK 

☐Up to CZK 1 million CZK

☐Up to 10 mil. CZK

☐above CZK 10 million CZK 10,000

What is the expected amount of funds invested (amount, currency, estimate over the next 18 months)?

     

What is the nature of the funds to be invested?

☐ Source mentioned above

               ☐ Other source: .................................................................. (please specify)

 

 

I declare that the above information is current, accurate and complete and undertake to inform .........., registered office .........., ID ..........., immediately of any changes. I acknowledge that I am liable for any damage caused by false or incomplete completion of the questionnaire.

 

In .................

                       

on............

     

 

Client's signature

 

 

......................................

Annex 8 - Information on the processing of personal data of Comfort Zone Investments a.s.

 

1. Introductory provisions
1.1 This Information on the processing of personal data ("Information") is prepared in accordance with Regulation No. 2016/679 of the European Parliament and of the Council, General Data Protection Regulation ("General Data Protection Regulation").
1.2 The purpose of this Infomation is to provide information to clients and potential investors using collective money management services (hereinafter referred to as "Clients") of Comfort Zone Investments a.s., with registered office at Sokolovská 428/130, Karlín, 186 00 Prague 8, ID No. 09040927, registered in the Commercial Register maintained by the Municipal Court in Prague, Section B, Insert 25191, (the "Company"), about the collection and processing of personal data by the Company.
1.3 The Company considers all personal data of the Client to be strictly confidential.


2.    Personal Data Protection Policy
2.1 In particular, the Company is bound by the following principles when processing personal data:
2.1.1. personal data must be processed fairly and in a lawful and transparent manner;
2.1.2. personal data may only be collected for the purposes of fulfilling a legal obligation and may not be further processed in a manner incompatible with those purposes;
2.1.3. personal data may be processed only to the extent necessary in relation to the purpose in question;
2.1.4. the processing of personal data must take into account its accuracy;
2.1.5. personal data may be kept only for the necessary period; and
2.1.6. personal data must be processed under appropriate security.


3. Information for Clients
The Company provides the following information to Clients about the processing of personal data:
3.1. the data controller
3.1.1 The data controller, i.e. the one who collects and is responsible for the data, is the Company. The contact address of the Company is set out above; further contact details can be found at https://www.comfortzoneinvestments.com/.
3.2 Purposes of processing and their legal basis
3.2.1 The Company processes personal data for the following purposes in particular:
(a) the proper provision of services to Clients, 
b) to comply with legal requirements, 
c) for the performance of the contract; and
d) to prevent the laundering of the proceeds of crime and the financing of terrorism.
3.2.2 The legal basis for the collection of personal data is primarily the legislation of the Czech Republic, in particular Act No. 240/2013 Coll., on Investment Companies and Investment Funds ("ICIF") and related implementing regulations issued by the Czech National Bank, as well as Act No. 253/2008 Coll., on Certain Measures against the Legalization of Proceeds of Crime and Terrorist Financing, and the Company's legitimate interest in preventing the legalization of proceeds of crime and terrorist financing.
3.2.3 The Company processes the Client's identification and contact data, such as the Client's name and surname, date of birth, birth number, home address, e-mail, telephone number or bank account number. Within the framework of the prevention of money laundering and terrorist financing, the Company processes the Client's name and surname, birth number, date of birth, place of birth, gender, permanent or other residence, nationality and image, data on the issue and validity of the Client's identification documents, income and assets and political exposure. Data on the Client's assets or investment knowledge and experience may also be processed for the purpose of assessing or categorising the Client for regulatory reasons (in particular the ISIF).
3.3 Obligation to provide personal data
3.3.1 The Company shall not enter into a contractual relationship with any person who refuses to provide personal data to the extent required by law. If the Client refuses to provide such information, the Company shall not enter into any contractual relationship with the Client or shall be obliged to terminate the existing contractual relationship with the Client.
3.4 Archiving period
3.4.1 The Company shall archive the Clients' personal data for such period as is necessary in relation to the purpose for which it was obtained.
3.5 Categories of recipients of personal data
3.5.1 The Company may disclose Personal Data to entities and authorities to whom it is obliged or entitled to disclose Personal Data in order to fulfil the purposes set out above and to comply with its legal obligations. This applies in particular to government authorities or auditors.
3.6 Transfer of personal data to third countries
3.6.1 The Company does not envisage any first-time transfers of personal data to countries outside the European Union. In the event of transfers of personal data to third countries where the level of protection of personal data is not considered sufficient by the European Commission, the Company will apply the standard contractual provisions approved by the European Commission and will follow the relevant provisions of the General Data Protection Regulation.

4.    Rights of Clients
4.1 The primary bearer of personal data is always the Client and as such has the rights in relation to his/her personal data as set out below and specified in more detail in the General Data Protection Regulation.
4.2 Right of access to personal data
4.2.1 The Client has the right to obtain confirmation from the Company as to whether it processes his/her personal data and the right to access such data and information about it.
4.3 Right to rectification or completion
4.3.1 The Client may request the correction or completion of his/her personal data. The Company is obliged to comply with the Client's request if justified.
4.4 Right to erasure
4.4.1 The Client has the right to ask the Company to delete his/her personal data if any of the legal grounds for deletion is present.
4.4.2 The Client does not have the right to erasure if the processing of the personal data is necessary for the establishment, exercise or defence of legal claims or for the performance of a legal obligation under the law. 
4.5 Right to restriction of processing
4.5.1 In case of uncertainty about the accuracy or lawfulness of the processing of personal data, the Client may request that the Company temporarily restrict the processing of his/her personal data.
4.6 Right to data portability
4.6.1 If the legal prerequisites are met, the Client has the right to request from the Company his personal data in a machine-readable format and the right to request the transfer of such data to another controller.
4.7 Right to object
4.7.1 The Client shall have the right to object to the processing of their personal data by the Company on grounds relating to their particular situation (and in the case of direct marketing, at any time). Unless there are compelling legitimate grounds for processing, the Company shall no longer process the Client's personal data in question.
4.8 Right to lodge a complaint
4.8.1 Every Client has the right to lodge a complaint with a supervisory authority in the European Union if he/she believes that the processing of his/her personal data violates the General Data Protection Regulation. The supervisory authority in the Czech Republic is the Office for Personal Data Protection, located at Pplk. Sochor 27, 170 00 Prague 7, www.uoou.cz.


5.    Final provisions
5.1 The Company is entitled to unilaterally change the Personal Data Protection Information at any time.
5.2 This Information shall take effect on 1 January 2022.

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