NOVA Green Energy - Subfund 2

NOVA Green Energy is a fund of qualified investors (hereinafter only “Fund”) investing in equity of companies operating small and medium facilities (1-4 MW) that generate power from renewable sources of energy in the Central and Eastern Europe, particularly in the Czech Republic and Slovakia. The yield of the Fund is steady because it’s based on feed-in tariffs of electricity for a period of 15 – 20 years; moreover these prices exceed a common market electricity price. Those factors together with effective asset management reflect in economic result of the Fund. 

The Fund aims to be the best option for conservative investors expecting stable  and adequate capital appreciation in the area of renewable sources. Strict regulation framework, clearly set management motivation, a respected fund manager, expert and auditor as well as other institutional and project guarantees ensure maximum transparency of NOVA Green Energy following the model of Western Europe investment funds.

ndividual Investors

The investment in the Fund is exclusively intended for persons matching the definition of a qualified investor in compliance with Act No. 240/2013 Coll., on Investment Companies and Investment Funds, therefore it is necessary to invest at least 125,000 EUR (3,500,000 CZK) and sign a Declaration of Risk Awareness concerning this type of investment and including investment experience.

Subsequently, the investor wishing to make investments fill out the following documents with the fund manager:

• Agreement on Subscription/Redemption of Investment Shares
• Request for Issuance of Investment Shares 
• Declaration of Risk Awareness
• Anti-Money Laundering (AML) Form
• FATCA documents

Institutional Investors, asset managers and similar financial institutions

You will need to fill out a few subscription documents:

• Agreement on Subscription/Redemption of Investment Shares
• Request for Issuance of Investment Shares
• FATCA documents
• Official list of authorized persons entitled to sign these documents on behalf of the institution/client
• A copy of documents (e.g. your licence or similar document) that proves that your institution can be considered the professional investor

We will need hard copies of these documents from you by mail. To accelerate the process, please send us scan copies by e-mail while the hard copies are delivered to us.

Why to invest into the Fund?

• Stable and predictable return profile
• Low/no correlation to financial market volatility
• Strong service level agreements with reputable parties
• Proven team and track record

The fund provides an opportunity anchored in legislation-protected investment environment, suitable for cautious investors looking for stable returns.

The fund issues investment shares as no-par value shares. The redemption of investment shares is ongoing throughout the year process and the redemption periods by the investment company are set according to the size of required redemption amount. In case of the investment up to 10 million CZK, 4 months is a maximum period from the end of the month in which the investment company received the request for redemption. In the period starting from the delivery of the request until the redemption of investment shares, the investment shares do not bear any interest.

The investment into the Fund is not time limited. The minimum recommended investment horizon is 3 years. 

The purchase of investment shares by individuals (natural) and legal persons is most often carried out through so called “direct investment”. Direct investment means that the investor sends financial means directly to the Fund’s account maintained by its depository and subsequently investment shares are credited to its asset account maintained by one of the participants of the Central Securities Depository (CSD) at an aliquot value. In case the investor has no property account at its disposal, the services of fund’s manager may be used in terms of account setting and the completion of the entire transaction.

In the first place, any investor interested in investing should read the information available about the Fund and its investment profile.

The key risks in the field of renewable resources that the Fund faces include technological risk, project implementation risk, and natural risk. All those risks may represent a malfunction of the technology, respectively failure to achieve the expected technical parameters of production, which may result in the inefficiency of equipment production at higher costs. Very important is a specific risk of instability of state energy policy, which may negatively affect the value of the Fund's assets.

Another specific risk is technological risk, as well as the operation risk of sources used in order to produce electricity and heat from renewable sources, which are directly linked to natural conditions that may not be influenced externally. Moreover, natural sources such as annual average wind speed, sunshine or crop yield for biomass production could significantly oscillate. Investments targeted by the Fund, both in the Czech Republic and abroad, are subject to state regulations and any change in law, both in the Czech Republic and in other countries where the Fund invests, may, therefore, change legal relationships applying to the Fund's investments, that may differ significantly from the current situation.

We used available data of comparable investment funds on the Czech market to determine the aggregate risk indicator.

The Fund may invest into the following facilities:

• Photovoltaic Powerplants
• Wind Powerplants
• Small Hydro Powerplants
• Waste-to-energy Facilities
  
• Combined Heat and Power Production (cogeneration)
• Biogas Powerplants
• Biomass Facilities
• Energy Funds