EGRN extracts may show ownership structured as follows:
Under “Owner(s)”: unit-holders of a closed-end mutual fund managed by LLC “…”, identified using records of unit-holder accounts in the unit-holder register and depot accounts.
Type of right: joint shared ownership.
In “Restrictions and encumbrances”, the right type may be stated as trust management, naming the asset-management company.
To interpret these entries correctly, it helps to recall how mutual funds and trust management are defined in Russian law.
Federal Law No. 156-FZ of 29.11.2001 “On Investment Funds”
An investment fund is an aggregate of assets owned by a joint-stock company or jointly by individuals and legal entities, where use and disposal are carried out by the management company solely in the interests of that company’s shareholders or the settlors of the trust management.
Art. 10: “1. A mutual investment fund is a segregated pool of assets transferred in trust to the management company by one or more settlors with pooling of those assets with assets of other settlors, and of assets obtained in the course of such management, where the share in ownership is evidenced by securities issued by the management company. A mutual investment fund is not a legal entity.”
Art. 11: “3. The management company carries out trust management of the mutual investment fund… It enters into transactions over the fund’s assets in its own name, stating that it acts as trustee…”
In litigation and other procedures involving such objects, interests are represented by the management company acting as trustee of the relevant mutual fund.