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Rules' amendments for DSK MMF, DSK Euro MMF and DSK Alternative into force from 30.08.2018

On 21 July 2018, Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on money market funds (the "Regulation") entered into force.

The regulation introduces a severe restrictive regime both on the investment limitation of these funds and on their administration. These changes are expected to significantly hamper the functioning of money market funds (MMFs) and for that reason multiple management companies in Europe have to liquidate or merge the respective MMFs under their management.

Due to the practical impossibility in the conditions of the Bulgarian market and the economic inadvisability to apply the Regulation to the money market funds managed by us, DSK Asset Management AD took action to change the rules of the managed money market funds - DSK Money Market Fund and the DSK Euro Money Market Fund. The same step has been taken for the DSK Alternative’s rules, which is not classified as MMFs, but because of its investment objectives and investment strategy also falls under the range of the Regulation. It is planned that the change in the rules of the three Funds will enter into force one month after the date of their approval by the Financial Supervision Commission (i.e. 30 August 2018).
Under the projected amendments, the three Funds will continue to pursue a conservative investment strategy in order to ensure predictable growth of the value of the Fund’s units with limited fluctuations. The funds will invest predominantly in deposits with credit institutions and, to a lesser extent, debt securities.

In connection with the requirements of the Regulation, the names of DSK Money Market Fund and DSK Euro Money Market Fund will be changed respectively to DSK Alternative 1 and DSK Alternative 2.

The Rules, Prospectuses and KII of the three Funds with amendments, effective from 30 August 2018, are published on the DSK Asset Management AD website at the Documents section of each Fund.

Until the changes come into effect, investors in the three funds may sell back their units under the current conditions without any redemption fee, so that investors who disagree with the changes will be able to get rid of their units under the current conditions (note, that even after the rules’ changes come into force, there won’t be a redemption fee).

Investors should have in mind that the value of the funds’ units and the income from them may decrease, the profit is not guaranteed and they take up the risk of not recovering their investment in full. Before making a final investment decision, it is advisable for investors to familiarize themselves with the Prospectus and the Key Investor Information Document of the respective fund. The documents are in Bulgarian and they are available on the website of DSK Asset Management AD (www.dskam.bg), and upon request can be obtained free of charge on paper at the office of the Management Company or at the offices of the DSK Bank AD, designated as a distribution point, every working day within their working hours.