Abbreviated Prospectus

 Previously called: ETCHEVERRIA FONDO, FI

 Incorporated on the 22-10-1998 and included in the CNMV Register on the 04-12-1998 with number 1664

 

0) GENERAL INFORMATION ABOUT INVESTMENT FUNDS

 "This document collects the necessary information for the investor to be able to formulate a well founded judgement about the proposed investment. Nevertheless, the information it contains may be modified in the future. Said modifications will be made public in the legally established way and may, should it be the case, grant the shareholder the corresponding right of separation."

The abbreviated prospectus is a separable part of the full prospectus, which contains the Management Regulations and more detailed information. The abbreviated prospectus must be delivered, previous to the signing of the contract, with the last published half-yearly report. All these documents can be freely requested with the last quarterly and annual reports in BANCO ETCHEVERRIA, S.A. or from InterMoney Gestión S.G.I.I.C. on the telephone number: 91 432 64 00 or they are also available on its web page www.grupocimd.com and can be consulted in the Registers of the CNMV.

 The positive verification and the consequent registering of the prospectus by the CNMV do not imply a recommendation for the subscription of the shares referred to, nor does it imply any type of pronouncement about the fund's solvency or the return or quality of the shares offered.

 The Funds' Investments, whatever their investment policy, are subject to market fluctuations and other risks inherent to investment in securities. Therefore, the shareholder must be aware that the net asset value of the share may fluctuate both up and down.

 The detailed composition of the Funds' portfolio may be consulted in the periodic reports. The closing date of the annual financial statements is 31st December.

 

I) PEOPLE WHO ASSUME RESPONSIBILITY FOR ITS CONTENT

 Mr. Luis Enrique Navarro Barrionuevo, with I.D number: 70.158.003-E, in his capacity as Director and Mr. Iñigo Trincado Boville, with I.D number: 32.756.885-D, in his capacity as Director, on behalf of and representing INTERMONEY GESTION, S.G.I.I.C., S.A.

 and Mr. José María Alonso-Gamo Sandoval, with I.D number: 7.226.908-D, in his capacity as legal representative, on behalf of and representing BANCOVAL, S.A., assume the responsibility for the content of this Prospectus and declare that, in their judgement, the information contained in this prospectus is true and fair and that no information has been omitted that may affect its scope.

 

II) IDENTIFYING INFORMATION

Management company	INTERMONEY GESTIÓN S.G.I.I.C, S.A. Group: CIMD
Depositary	BANCOVAL S.A. Group: DEXIA BIL
Subcustodians	CITYBANK	CLEARSTREAM	DEUTSCHE BANK
Auditor	PRICE WATERHOUSE & COOPERS
Marketers	BANCO ETCHEVERRIA S.A., InterMoney Valores S.V. and those legally authorised institutions that have signed a marketing contract. It is possible to carry out subscriptions and redemptions of shares through the Telephone Service, Electronic Service and Internet of those marketing institutions that have organised it and signed the corresponding contract.

 

III) GENERAL CHARACTERISTICS

The fund is in euros.

 

Minimum initial investment	1 share.
Minimum maintenance investment	Inexistent.
Maximum share volume per shareholder:	Not established.
Type of shareholders the fund is aimed at	The fund's main marketing target is the Galicia Region, although it does not exclude marketing in the rest of Spain. The main marketer will be Banco Etcheverría. The fund has a special interest in investing in Galician companies or companies that are well-established in the Galicia Region. The Fund's Shares are offered to investors that seek a balanced investment between equity and fixed income assets, with the aim of obtaining a progressive increase in the value of the assets, limiting the risk in equity to 30% of the investment.
Minimum recommended duration of the investment	A long term period is recommended of, at least, three years.
The fund's risk profile	Moderate-High.

IV) INVESTMENT POLICY

1. Aim of the fund and the management objective: Mixed Fixed Income
   The investment aim of the fund will be the acquisition of equity and fixed income financial assets, with the latter not exceeding 30% of the Fund's assets. The investment in non-euro assets will not exceed 5% of the assets.
   The fund has a special interest in investing in Galician companies or those that are well established in the Galician Region (both in equity and public and private fixed income assets).
   
   
2. Investment selection and distribution criteria
    The fund will invest in listed equity and fixed income assets, with the latter not exceeding 30% of the assets. The investment in non-euro assets will not exceed 5% of the assets.
   
    The fund will invest at least 10% of its assets in equity of Galician companies or companies that are well established in Galicia. This percentage may increase up to 30% if the managers consider that said companies may have a better performance relative to the rest of the equity market. The rest of the portfolio invested in equity will be invested in the Spanish continuous market and in securities that are listed in any other European Monetary Union country, without ruling out smaller investments in other OECD countries. The fund will invest in companies with high, medium and low stock exchange capitalisation.
   
    In fixed income, the fund will invest a minimum of 25% in issuers from the Galicia Region (both government and private companies), as well as private fixed income of companies that are well established in the Galicia Region. This percentage may gradually fall if the Fund's assets increased considerably, due to possible scarcity of issues that may exist at that moment in the market. The rest of the fixed income securities will be in euros and mainly issued by Institutions or companies from countries that belong to the European Monetary Union. The average duration of the fixed income portfolio may fluctuate between 1 and 5 years.
   
    The fund may invest a maximum of 50% of the fixed income portfolio in issuers with a rating equal to or lower than Baa or BBB, with the rest of the fixed income issuers having a rating higher than that level. As a result the credit quality of the Fund's fixed income portfolio will be medium.
   
    The maximum investment percentages, as well as the liquidity coefficient, established in the current legislation for each type of asset will be scrupulously respected at each moment.
   
   The fund may invest more than 35% of the assets in securities issued by a member state of the European Union, the Autonomous Communities, a local entity, the International Bodies that Spain is a member of and those states that present a solvency rating, awarded by an agency specialising in risk rating with well-known prestige, no lower than that of Spain. Specifically, it is anticipated that said percentage will be exceeded in government bonds issued by member states of the Euro Zone.
   
    This fund plans to trade in financial derivatives traded on organised derivatives markets with the aim of hedging and as an investment. These instruments involve additional risks to those of the spot market due to the leverage involved. This makes them especially sensitive to price variation in the underlying asset and can multiply the portfolio's value losses.
   
   The fund will not exceed the general limits on using financial derivatives due to market risk and counterparty risk as established in current regulations. Among other things, the commitments for derivatives transactions may not exceed, at any moment, the value of the the Institution's assets, nor may the premiums paid for options bought exceed 10% of said assets.
   
   
3. Risks inherent to investments:
   The issuers of the securities that the fund invests in have an average credit rating. Therefore, there is a moderate counterparty risk.
   
   The investment in equity involves the fund's return being affected by the volatility of the markets it invests in. Therefore, there is a high market risk.
   
   This risk may be increased due to the concentration of the investments in a specific geographical zone. In addition, the fund invests in securities of low capitalisation, which may deprive the investments of liquidity.
   
   Investment in fixed income assets involves an interest rate risk. This fund invests in both long and short term assets, whose sensitivity to interest rate fluctuations is high or low, respectively.
   
   

 

V) RETURN GUARANTEE

 No return guarantee has been given.

 

VI) FEES APPLIED

Fees applied	Tranches/Terms	%	Calculation base
Annual management fee		1.05	Assets
Annual depositary fee	On the percentage of the portfolio invested in national markets	0.10	Assets
	On the percentage of the portfolio invested in international markets	0.175	Assets

 The expenses that the fund bears are: CNMV rates, auditing expenses, settlement expenses, intermediation expenses, financial expenses for overdrafts and loans.

 The legal maximum limits for fees and discounts are the following:

Management fee:


 2.25% annually if calculated on the assets of the fund.

18% if calculated on the funds annual return.

1.35% annually on assets plus 9% on the annual return if calculated on both variables.

 Depositary fee: 0.20% annually on the fund's assets.

Subscription and redemption fees and discounts: 5% on the price of the shares.

 If the fees or discounts are set or increased in favour of the fund, this will be made public in the legally established way, thus allowing the shareholders the right of separation as referred to in Article 12 of the LIIC (Collective Investment Schemes Act) as well the corresponding updating of this explanatory prospectus.

 

VII) INFORMATION FOR THE SHAREHOLDER

 

Valuation of subscriptions and redemptions and publishing of the net asset value

The Management Company publishes the net asset value of the fund daily in its web page, www.grupocimd.com. For the subscriptions and redemptions requested in this Fund, the settlement value is that corresponding to the day of the request. Therefore, if a subscription or redemption is requested in Day "D", the net asset value applied will be that corresponding to day "D".
In all cases, the settlement value will be the same for the subscriptions and redemptions requested at the same time. The subscription request will be understood to have been performed in the moment that the sum passes into the fund's account. The marketers may set different and earlier cut times to those set generally by the Management Company. The marketer must inform the shareholder of this. The Management Company will demand 10 days' notice for redemptions greater than 300,000 euros. In addition, when the total sum of the redemption to one shareholder within a period of 10 days is equal to or greater than 300,000 euros, the Management Company will demand 10 days' notice for the new redemption requests that are made in the ten days following the last requested redemption, whatever the amount. For the calculation of the notice figures, the total redemptions ordered by one legal representative will be taken into account.
Orders issued by the shareholder after 12:00 or on a non-working day will be processed together with those made on the next working day. For this, working days are understood as those between Monday and Friday, except public holidays. Days in which there is no market for the assets accounting for more than 5% of the total assets will not be considered working days.

 

Periodic information pattern

The Management Company or the Depositary must remit a statement of the Fund's position to each shareholder, with a regularity no greater than one month. If in one period there are no subscriptions or redemptions, the statement of the fund's position may be postponed to the next period, although it will be mandatory to send the statement of the shareholder's position at the end of the financial period. If requested by the shareholder, the document will be sent by electronic means.
the Management Company will send the shareholders free successive annual and half-yearly reports, except if they expressly request otherwise, and, in addition, the quarterly reports to those shareholders that expressly request them. When the shareholder requests it, said document will be sent by telematic means.

 

VIII) TAX

The yields obtained by the Fund pay Corporate Tax at a fixed rate of 1%. The returns obtained by individual resident shareholders as a consequence of the redemption or transfer of shares are seen as capital gains or losses and capital gains or losses are withheld at 15%. Capital gains obtained in a period less than or equal to one year are liable to the general tax scale. Those obtained in a period of more than one year are taxed at 15%. None of this will affect deferred taxation as laid out in the current legal regulations applicable to transfers between Collective Investment Schemes.

Treatment of yields obtained by legal entities, non residents or in special tax systems will be bound by the current legal regulations. In case of doubt, it is recommended to seek legal advice.

 

X) OTHER POINTS OF INTEREST

 

X.I)

 

 The SGIIC has internal control systems of the depth of the market of the securities in which the collective investment scheme invests, considering the usual trading and the volume invested, with the aim of obtaining an ordered settlement of the collective investment scheme's positions through the normal contracting mechanisms.

Attached as an annex to this prospectus is the information collected in the fund's last published half-yearly report about the past evolution of the returns of the scheme and the total expenses of the fund expressed in terms of a percentage of the average total assets. Investors are warned that the past returns of the scheme are not an indicator of future returns.

 

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