Change in the name and Rules of the CF DSK Alternative
With Decisions dated 13.07.2022, the Deputy Chairman of the Financial Supervision Commission, who heads the Supervision of Investment Activity Department, approved changes to the rules of the contractual fund DSK Alternative, which come into force on 13.10.2022. As of this date, the name of the Fund also changes to DSK Stability - European Equities 2.
Changes to the fund's rules relate to the following:
1. Change in the investment objectives, strategy and policy of the Fund
The general goals of the Fund are protection of 100 (hundred) per cent of the value of the unitholders’ investments in the Fund, as well as (if possible) to increase the value of its unitholders investments above the protected amount by means of making the maximum possible income while taking low to moderate risk, as well as to ensure maximal liquidity of the unitholders investments during the “open period”.
In view of achievement its investment goals the Fund its activity has cyclical nature. Each investment cycle lasts approximately 4 (four) years and includes two basic periods, conditionally called the "open period" (with a duration of about 2 months) and "limited period" (lasting about 4 years). During both, different fees/expenses will be applied on investors for sale and redemption of units. In order to ensure the liquidity of unit holders' investments, during the "limited period" several "transitional periods" of about one month duration are foreseen, during which lower fees will be applied on investors for sales and redemptions of units compared to the fees for sale and redemption of units during the remainder of the "limited period".
The fund will primarily invest in securities issued or guaranteed by the Bulgarian state, by another member state or a third country, municipal bonds, corporate bonds and/or bank deposits in credit institutions with registered office in the Republic of Bulgaria, in another member state or in a third country. In order to provide investors with a capital gain, the Fund may also invest in other liquid financial assets within the meaning of Art. 38 of ACISOCIUA, incl. derivative financial instruments. The fund can also invest in shares/units of collective investment schemes which have their registered office in the Republic of Bulgaria or abroad.
The investment horizon of the Fund changes to 4 years.
The Management Company will inform unitholders and other investors of the exact date on which each "open"/"limited" and "transitional" period of the Fund's investment cycle will begin, at least 30 days before the start of the relevant period by means of announcements:
- at all "counters" where orders for sale and redemption of units from the Fund are accepted;
- on the website of the Management Company.
2. Change in the risk profile of the Fund
The Fund's risk profile will change from "low" to "low to moderate" risk. The possible higher risk of the Fund is based on the intended investments in derivative financial instruments. At the same time, the main part of the Fund's assets will be invested in low-risk instruments, which leads to a decrease in the Fund's overall risk.
3. Change in sale and redemption fees
For sale of the Fund’s units the Management Company includes in the issuance value of the purchased units increase amounting to, as follows:
a) during the “open period” 0.00% (zero);
b) during the “limited period”: 5% (five per cent) of the net asset value per unit;
c) during the “transitional period”: 1% (one per cent) of the net asset value per unit.
The distributor charges for the investor's account fees for the sale of shares of the Fund (separate from the above-mentioned allowance) in the amount of up to:
a) for the "open" period: 0.30% (zero whole and thirty hundredths of a hundred) of the net asset value of one share;
b) for the "restrictions" and the "intermediate" period: 0.00% (zero).
For redemption of units the Management Company includes in the redemption value of the units deduction amounting to, as follows:
a) during the “open period” 0.00% (zero);
b) during the “limited period”: 10% (ten per cent) of the net asset value per unit;
c) during the “transitional period”: 2% (two per cent) of the net asset value per unit.
The distributor does not charge the investors for redemption of the Fund’s units.
The changes in the Fund's Rules come into force on 13.10.2022, when the first "open" period of the Fund's investment cycle begins. It will last until 12.12.2022, respectively from 13.12.2022 the first "limited" period begins. In case the unit holders do not agree with the changes in the Rules, they can sell back their units to the Fund in the period until the changes in the Rules come into force.
The approved Rules of the Fund, as well as the updated Prospectus and Document with key information for investors (effective from 13.10.2022), can be found on the website of DSK Asset Management www.dskam.bg
This announcement is for informational purposes and does not constitute investment advice, investment recommendation or investment research. The value of the fund's units and the investment income may decrease, profit is not guaranteed and investors take the risk of not recovering their investment. Please, read the Prospectus and the Document with key investors information before the final investment decision. The documents are in Bulgarian and are available on the website of DSK Asset Management AD www.dskam.bg, and upon request they can be received free of charge at the office of the Company or at the offices of DSK Bank, that are points if funds’ distribution, every working day within their working hours. Investors can get a summary of their rights in Bulgarian at the following link: https://dskam.bg/docs/librariesprovider3/dskam/documents/unitholders-rights.pdf.