Change in the name and Rules of the NCF "DSK Horizon 2040"
By Resolutions dated 25.08.2023 the Vice-Chairman of the Financial Supervision Commission, in charge of the Investment Supervision Department, has approved changes to the rules of the NCF DSK Horizon 2040, effective 25.10.2023. As of this date, the name of the Fund is changed to "DSK Stability - European Equities 4".
The changes to the Fund's rules relate to the following:
1. Changes to the Fund's investment objectives, strategy and policy
The main objectives of the Fund are to protect 100 percent of the value of Unitholders' investments in the Fund and (where possible) to grow the value of Unitholders' investments above the protected amount by realizing the maximum possible return from the Fund while taking low to moderate risk, and to ensure maximum liquidity of Unitholders' investments during the Open Period.
Investment cycles are introduced, which are conventionally referred to as the open period and the limited period.
During the open period, which will last approximately 2 months, the Fund will actively raise funds from investors. During the limited period, which will last for approximately 5 years, the Fund will pursue its primary objectives of providing protection for 100 (one hundred) percent of the value of the investments of Unitholders in the Fund and realizing a capital gain.
The majority of the Fund's assets during the limited period will be invested in securities issued or guaranteed by the Bulgarian State, a Member State or a third country, municipal bonds, corporate bonds and/or bank deposits.
To realize capital gains, a portion of the Fund's assets may be invested in such a way as to provide exposure to indices on European company shares, primarily through investments in derivative financial instruments.
In the interest of investors, to provide liquidity to their investments on better terms, "transitional periods" of approximately one (1) month are provided in certain cycles of the limited period. There will be 4 transitional periods within each limited period, with the first period starting approximately 12 months after the start of the limited period and each subsequent transitional period starting approximately 12 months after the start of the previous transitional period. Purchasers of Units during the transitional periods will not be able to rely on protection of 100 percent of the value of their investment at the end of the limited period.
The Management Company will inform Unitholders and other investors of the exact date on which each "open"/"limited" period of the Fund's investment cycle will begin, as well as of each "transitional period" within the "limited period", at least 30 days prior to the start of the relevant period through announcements:
- at all "counters" at which orders to sell and redeem units of the Fund are accepted;
- on the website of the Management Company.
2. Change in the costs of issuing and redeeming units
2.1. The Fund is required to offer its Units to investors on an ongoing basis at an issue price based on the net asset value per Unit, increased by the costs of issuance as follows:
(a) For the "open period": 0.00%;
(b) for the limited period': 5% of the net asset value per unit;
(c) for the 'transitional period': 1% of the net asset value per unit.
If the distribution of the Fund's units is entrusted to a third party, the distributor may charge the investor fees when selling the Fund's units, but the amount of such fees when selling the units may not exceed:
(a) for the "open period": 0.50% of the net asset value per unit;
b) for the "limited" and "transitional" periods: 0.00%.
The above distributor fees are payable separately from the issue costs.
2.2 The Fund is obliged, at the request of Unitholders, to redeem Units at a price based on the Net Asset Value per Unit less redemption costs, the reduction being as follows:
(a) for the "open period": 0.00%;
(b) for the 'limited period': 10% of the net asset value per unit;
(c) during the "transitional" period: 2% of the net asset value per unit.
In the event of assigning the distribution of the Fund's Units to a third party, the Distributor may not charge redemption fees on the Fund's Units to the investor.
3. Waiver of periodic purchase orders under an investment plan
The ability to place periodic purchase orders for Fund units under an investment plan is no longer available.
4. Change in the amount of the Management Company's remuneration
The Management Company's remuneration is reduced from 2.00 percent to 1.00 percent of the average annual net asset value of the Fund, while the Management Company remains free to waive part of this remuneration.
The changes to the Fund Rules will take effect on 25 October 2023.
The approved Rules of the Fund, as well as the updated Prospectus and Key Information Document (effective from 25.10.2023), can be found on the website of DSK Asset Management www.dskam.bg.
This announcement is for information purposes only and does not constitute investment advice, advice, investment recommendation or investment research. The value of the Units and the income from the Units may decline, a profit is not guaranteed and investors bear the risk of not recovering their investment in full. Please read the Prospectus and the Key Information Document before making a final investment decision. The documents are in Bulgarian and are available on the website of DSK Asset Management AD www.dskam.bg, and can be obtained free of charge on paper upon request at the office of the Management Company or at the offices of DSK Bank AD designated as a distribution point, every business day during business hours. Investors can obtain a summary of their rights in Bulgarian at the following hyperlink: https://dskam.bg/docs/librariesprovider3/dskam/documents/unitholders-rights.pdf.