Luxembourg, 25 February 2022
We are writing to inform you of the decision of the board of directors of the Company (the “Board”) to apply, in accordance with the provisions of the prospectus of the Company, a higher swing pricing factor to the Sub-Fund with effect as from the 25 February 2022 (the “Effective Date”) and until further notice.
1. Reasons for the application of the Swing Pricing
The current market environment due to the conflict between Russia and the Ukraine, severely impacts liquidity and pricing of instruments traded by the Sub-Fund, which results in an important gap between the real prices and those displayed by suppliers. Under these exceptional circumstances, and for the purpose of preserving the best interests of the shareholders of the Sub-Fund and ensuring their equitable treatment, the Board has resolved to increase swing pricing factor for the Sub-Fund as further detailed below.
2. Practical information
Swing pricing aims to protect existing or remaining shareholders of the Sub-Fund from the dilution's effects they may suffer as a result of subscriptions, redemptions and/or conversions of shares in or out of the Sub-Fund. Further details on the swing pricing mechanism can be found in section “SHARE PRICING” of the Prospectus.
The maximum swing factor (expressed as percentage of the net asset value) will be increased to up 5%. The swing pricing threshold is set at 1%. The maximum swing factor will be continuously reviewed and will be reduced as soon as it is no longer
required, taking into account the best interests of shareholders of the Sub-Fund. Shareholders will be informed about the reduction of the maximum swing factor via separate website notice.
If you require further information, please do not hesitate to contact La Française Asset Management or your financial adviser. Yours faithfully, On behalf of the Board