Change in the name and Rules of MF DSK Stability - German Equities
With a decision from 25.10.2024. The Deputy Chairman of the Financial Supervision Commission, in charge of the Investment Supervision Department, approved changes to the Rules of MF DSK Stability - German Equities, which come into force on 22.01.2025.
The changes to the Fund's rules relate to the following:
1. Change in the investment objectives, strategy and policy of the Fund
The main objectives of the Fund will be to protect 101 (one hundred and one) per cent. of the value of Unitholders' investments in the Fund, and (where possible) to grow the value of Unitholders' investments above the protected amount by realising the maximum possible return from the Fund at low risk, and to ensure maximum liquidity of Unitholders' investments during the Open period.
The Fund will invest predominantly in securities issued or guaranteed by the Bulgarian State, another Member State or a third country, and/or bank deposits with credit institutions domiciled in the Republic of Bulgaria, another Member State or a third country.
In order to achieve the Fund's investment objectives, the Fund's activities are cyclical in nature. Each investment cycle lasts approximately one year and eight months and includes two main periods - open and limited.
The first main period is referred to as the "open period" and lasts approximately two months. During this period active fundraising by investors takes place. This is also the period during which investors who have purchased units of the Fund in previous investment cycles and wish to redeem are advised to sell their units back to the Fund.
During the Open Period, the Fund's assets are invested primarily in money market instruments and/or bank deposits.
The second main period is referred to as the "limited period" and lasts approximately one year and six months. The "limited period" starts on the first day after the expiry of the "open period".
During the "Limited period", the Fund will pursue its primary objectives of providing protection of one hundred and one percent (101%) of the value of Unitholders' investments in the Fund and realizing a capital gain. Protection of 101 (one hundred and one) percent of the value of the investment during this period means that the net asset value per unit calculated as of the last business day of the "limited period" shall not be less than 101 (one hundred and one) percent of the net asset value per unit calculated as of the last business day of the "open period".
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 and/or bank deposits.
An "transitional period" of approximately one month is provided for within each "limited period", commencing approximately 12 months after the start of the "limited period". The " transitional period" is provided for in the interest of investors in order to provide liquidity to their investments on better terms in a given cycle of the "limited period". In particular, during the " transitional period" the costs borne by investors in selling and redeeming units will be lower than during the rest of the "limited period". If an investor wishes to buy or sell back Units, he will be able to do so during the " transitional period" on better terms than during the rest of the "limited period".
Investors should note that investors who purchase Units during the "limited periods", including the " transitional period", will not be able to rely on the protection of 101 (one hundred and one) per cent. 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 commencement 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': 3% 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': 5% 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.
The changes to the Rules of the Fund will come into effect on 22 January 2025. If Unitholders do not agree to the changes to the Rules, they may sell back their Fund units in the period until the changes to the Rules come into effect without additional charges beyond those provided for in the Rules and the Prospectus of the Fund. Unitholders who do not agree to the amendments may redeem their Units until December 20, 2024, for which they will be subject to the applicable fees for the "limited period" (10% of the NAV per Unit) and from December 21, 2024 to January 21, 2025 for the "open period" (0% of the NAV per Unit).
The approved Rules of the Fund as well as the updated Prospectus and Key Information Document (effective from 22.01.2025) 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 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.