The fund is property
Fund assets are segregated from the management company’s own property.
The unit records investor rights
A unitholder has statutory and rule-based rights, not ownership of each underlying asset.
Management may change
Licence loss or inability to manage triggers a special route, not ordinary bankruptcy of the fund.
Identify the actual risk
| Situation | Meaning | First step |
|---|---|---|
| Unit value falls | Market risk in fund assets | Check valuation and portfolio composition |
| Management licence is revoked | The existing management model cannot continue | Check Bank of Russia, depositary and fund notices |
| Management company enters bankruptcy | Its own debts are not the same as fund property | Verify segregated accounting and the next management route |
| Fund is terminated | Assets and settlements follow special statutory rules | Check the ground, timetable, responsible entity and unitholder register |
| Depositary or registrar problem | Rights records and replacement infrastructure require confirmation | Obtain statements and official notices |
Unitholder action plan
Identify the fund
Record the full name, fund type, rule number and management company.
Prove the unit
Obtain a unitholder-register or custody statement.
Check participants
Verify the manager, specialised depositary and registrar in Bank of Russia registers.
Download the rules
Review issue and redemption, fees, valuation and termination.
Find official notices
Keep licence, transfer-of-management and termination notices.
Verify settlement
Check the register, payment details, calculated value and payment or transfer documents.
Different investment structures
| Instrument | Investor holds | Main bankruptcy risk |
|---|---|---|
| Fund unit | A unit and rights under fund rules | Manager, infrastructure, termination and portfolio value |
| Company share | Corporate right in the issuer | Issuer bankruptcy and no residual value after creditors |
| Bond | Debt claim against issuer | Default, creditor register and insufficient assets |
| Brokerage account | Rights to recorded money and securities | Segregation of client assets from broker property |
Frequently asked questions
Can a PIF itself be declared bankrupt?
The fund is not a legal entity. Review the manager, fund infrastructure, assets and statutory grounds for termination of trust management.
Do fund assets enter the manager’s bankruptcy estate?
The special regime generally segregates fund property. Accounting, title and any dispute still require documentary proof.
Is unit value guaranteed?
No. Asset segregation does not remove market, credit, liquidity and operational risks.
Who settles with investors when the fund terminates?
It depends on the statutory ground and special procedure under Law No. 156-FZ and the fund rules; check the official notice and appointed entity.
How is this different from broker insolvency?
A broker intermediates and records client money and securities. A PIF is a separate asset pool under specialised management and custody.
Primary legal sources
- Federal Law No. 156-FZ on Investment Funds
- Federal Law No. 127-FZ on Insolvency
- Bank of Russia securities-market registers
- Bank of Russia financial-organisation directory
- Russian Commercial Court Docket
Related guides
Broker insolvency · Brokerage account and IIS in personal bankruptcy · Bonds in issuer bankruptcy
Need to verify the fund, management company and rights represented by a unit?
Initial consultation