Information regarding the sub-fund CSOB Potravin a Napoju 5 1 Basic details

Transcription

1 Information regarding the sub-fund CSOB Potravin a Napoju 5 1 Basic details 1.1. Name: CSOB Potravin a Napoju Launch date: From 1 st August 2013 till 3 th October 2013 (inclusive) 1.3. Lifetime: Limited to 28 June Stock exchange listing: Not applicable 1.5. Delegation of the management of the investment portfolio: Management of the investment portfolio has not been delegated. 2 Investment information Sub-fund s objective: The main objective of this sub-fund is to generate the highest possible return for its shareholders by pursuit of capital gains and income Sub-fund s investment policy: Permitted financial instruments: The sub-fund may invest in transferable securities, money market instruments, units or shares of undertakings for collective investment (UCI s) established in EU Member States, deposits, financial derivatives, liquid assets and all other instruments in so far as permitted by the applicable laws and regulations and consistent with the object referred to in Selected strategy. The sub-fund may employ all techniques for an efficient portfolio management. The sub-fund may hold an adequate reserve of liquidities. The sub-fund is also authorised to borrow up to 25% of the net assets of each sub-fund without restriction and regardless of the object. However, this will not be used for leverage purposes Permitted derivatives transactions: Derivatives may be used either for hedging purposes or to achieve investment aims. Changes are made to investments at regular intervals in keeping with the sub-fund's investment strategy. In addition, listed and unlisted derivatives are used to achieve the objectives: these may be forward contracts, options or swaps on securities, indexes, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions Selected Strategy: INVESTMENT OBJECTIVES AND STRATEGY : The sub-fund has two investment objectives: firstly it seeks to preserve at Maturity 95% of the initial value on subscription and secondly a possible capital gain that is contingent on the possible increase of a basket of 20 shares of companies operating in the food and beverage sector. 60% of any increase in the value of the basket of 20 shares (=(End Value minus Starting Value) divided by the Starting Value), will be paid out at Maturity in addition to 100% of the initial value on subscription. The maximal capital gain is capped at 60% (yield to maturity: 8.56% before charges M_LU_SI_SHAREBASKET_POINTCAPPED

2 and taxes.) 100% of any decrease in the value of the basket will be taken into account with a maximum loss of 5% (yield to maturity: -0.90% before charges and taxes). Maturity: Friday 28 June 2019 (payment for value D+5 Luxembourg Banking Business days). Currency: CZK, for all shares in the Basket, changes in the value of the currency in which they are expressed relative to CZK are irrelevant. The investor pays the subscription amount in CZK and will be paid in CZK at maturity (or earlier). STARTING VALUE: Value of the Basket based on the average of the Value of the shares included in the Basket on Thursday 10 October 2013 and on the first Valuation Day of the next 3 months, more specifically from November 2013 till January 2014 (inclusive). END VALUE: Value of the Basket based on the average of the Value of the shares included in the basket on the final Valuation Day of the month for the last 18 months before Maturity, more specifically from December 2017 till May 2019 (inclusive) VALUE : For all shares, except those listed on the Milan stock exchange, the closing value, i.e. the value of a share in the basket calculated at market close and announced by the relevant authority of the stock market where the share is quoted (or its legal successor). For shares listed on the Milan stock exchange, the reference price. VALUATION DAY: For each share in the basket, this is a trading day both on the stock market where the share is quoted, and on the main options exchange where the options on this share are quoted, unless an event occurs on such a day which disrupts the market in this share (suspension or restriction of trading in that share), or unless the markets in question close early (where the stock market authority has announced an earlier closing time for this trading day than for others). If an event disrupts the market or if there is an earlier closing time affecting a share in the basket, the original Valuation Day for that share will be replaced by the next trading day when there is no event disrupting the market or earlier closing time and which is not itself an original Valuation Day or a day replacing an original Valuation Day due to an event that has disrupted the market or earlier closing time. If, however, on each of the eight trading days after the original Valuation Day an event disrupts the market or there is an earlier closing time, (i) this eighth trading day will be considered to be the original Valuation Day, and (ii) the sicav will, in consultation with the prime counterparty (counterparties) with which it has concluded a swap agreement, estimate in good faith the value of the share as it would have been quoted on this eighth trading day and (iii) the sicav will inform the shareholders of (a) the occurrence of the event disrupting the market or the early closure affecting one or more shares, (b) the modified conditions for determining the starting and/or end value and (c) the terms and conditions regarding disbursement based on the investment objectives that have been achieved. BASKET : In the table below, the columns from left to right reflect the number of the share, the name of the share, the Bloomberg code, the exchange on which it trades (City-MIC) and its initial weighting in the basket. (i) Issuer Bloomberg Code Exchange Initial Weighting Coefficients 1 ASAHI BREWERIES LTD 2502 JT equity TOKYO - XTKS % 2 ASSOCIATED BRITISH FOODS PLC ABF LN equity LONDON - XLON % 3 CAMPBELL SOUP CO CPB UN equity NEW YORK - XNYS % 4 COMPANHIA DE BEBIDAS-PRF ADR ABV UN equity NEW YORK - XNYS % 5 CONAGRA FOODS INC CAG UN equity NEW YORK - XNYS % 6 DIAGEO PLC DGE LN equity LONDON - XLON % 7 DR PEPPER SNAPPLE GROUP INC DPS UN equity NEW YORK - XNYS % 8 GENERAL MILLS INC GIS UN equity NEW YORK - XNYS % 9 HERSHEY CO/THE HSY UN equity NEW YORK - XNYS % 10 IMPERIAL TOBACCO GROUP PLC IMT LN equity LONDON - XLON % 11 JM SMUCKER CO/THE SJM UN equity NEW YORK - XNYS % 2

3 12 KELLOGG CO K UN equity NEW YORK - XNYS % 13 MCCORMICK & CO-NON VTG SHRS MKC UN equity NEW YORK - XNYS % 14 MONDELEZ INTERNATIONAL INC-A MDLZ UW equity NEW YORK - XNGS % 15 NESTLE SA-REG NESN VX equity ZURICH - XVTX % 16 PEPSICO INC PEP UN equity NEW YORK - XNYS % 17 REYNOLDS AMERICAN INC RAI UN equity NEW YORK - XNYS % 18 TATE & LYLE PLC TATE LN equity LONDON - XLON % 19 THE COCA COLA COMPANY KO UN equity NEW YORK - XNYS % 20 UNILEVER PLC ULVR LN equity LONDON - XLON % Selection criteria for the basket : A share/issuer can only be included in the basket if (i) the share is exchange-listed, (ii) the share issuer is a company operating mainly in the food and beverage industry and (iii) the Board of Directors of the sicav has approved the inclusion of the share in the basket ( Selection criteria ) Modifications to the basket due to mergers, acquisitions, demergers, nationalisation, bankruptcy or disqualification. Mergers or acquisitions If, during the life of the sub-fund, one or more issuers of shares in the basket are involved in a merger or acquisition, the shares of the relevant issuers which still meet the selection criteria after these operations will be given a weighting in the basket equal to the sum of the weightings of the shares of all issuers involved in the operation. If, after the operation, none of the issuers involved in the operation meet the selection criteria, the procedures described under Nationalisation, bankruptcy or disqualification will apply. Demergers If an issuer of a share in the basket proceeds to a demerger, the weighting of the relevant share will be allocated proportionately across the shares of all the issuers resulting from the demerger which meet the selection criteria. If, after the operation, none of the issuers resulting from the demerger meet the selection criteria, the procedures described under Nationalisation, bankruptcy or disqualification will apply. Nationalisation, bankruptcy or disqualification If an issuer of a share in the basket is nationalised, declared bankrupt or no longer meets the selection criteria ( disqualification ), this share will be sold at the last known price before removal. The amount thus realised will then be invested until Maturity at the rate of interest in force on money or bond markets at the moment of removal, and this for a term equal to the term remaining until Maturity of the sub-fund. The realised amount plus the interest will be taken into account at Maturity as the result achieved for that share in order to calculate the final increase in the value of the basket at Maturity Diversification: The sub-fund may not invest more than 30% of its assets or its commitments to subscribe to securities of the same nature issued by the same issuer. This restriction is not applicable to investments in securities, issued or guaranteed by OECD member states, their local authorities, supranational bodies or organisations. The assets underlying to financial derivative instruments used by the Sub-fund will be subject to the same investment restriction of 30%. The counterparty for all OTC transactions of the Sub-fund is KBC Bank S.A Sub-fund s risk profile: The value of a share can decrease or increase and the investor may not get back the amount invested, if redeemed before Maturity. Risk type Definition of the risk Level of risk Market risk The risk that the entire market of an asset class will decline, thus affecting the prices and values of the assets High 3

4 Credit risk Settlement risk Liquidity risk Exchange or currency risk Custody risk Concentration risk in the portfolio. In an equity fund, for instance, this is the risk that the equity market in question will go down and, in a bond fund, the risk that the bond market in question will fall. The higher the volatility of the market in which the UCI invests, the greater the risk. Such markets are subject to greater fluctuations in return. The market risk for this sub-fund is High for the following reason : the volatility of the stock market and the currency of the sub-fund which are expressed in an other currency than the euro The risk that an issuer or a counterparty will default and fail to meet its obligations towards the sub-fund. This risk exists to the extent that the sub-fund invests in debt instruments. Debtor quality also affects the credit risk (e.g., an investment in a debtor with a high rating, such as investment grade, will pose a lower credit risk than an investment in a debtor with a low rating, such as speculative grade ). Changes in the quality of the debtor can have an impact on the credit risk. The risk that settlement via a payment system will not take place as expected because payment or delivery by a counterparty fails to take place or is not in accordance with the initial conditions. This risk exists to the extent that the UCI invests in regions where the financial markets are not yet well developed. This risk is limited in regions where the financial markets are well developed. The risk that a position cannot be liquidated in a timely manner at a reasonable price. This means that the UCI can only liquidate its assets at a less favourable price or after a certain period. The risk exists if the UCI invests in instruments for which there is no market or a market with only limited liquidity; for example, in the case of unlisted investments and direct real estate investments. OTC derivatives may also lack liquidity. The risk that the value of an investment will be affected by changes in exchange rates. This risk exists only to the extent that the UCI invests in assets that are denominated in a currency that develops differently from the reference currency of the sub-fund. For instance, a sub-fund denominated in USD will not be exposed to any exchange risk when investing in bonds or equities denominated in USD, but it will be exposed to an exchange risk when investing in bonds or equities denominated in EUR. The risk of loss of assets held in custody as a result of insolvency, negligence or fraud on the part of the custodian or a sub-custodian. The risk relating to a large concentration of investments in specific assets or in specific markets. This means that the performance of those assets or markets will have a substantial impact on the value of the UCI s portfolio. The greater the diversification of the UCI s portfolio, the smaller the concentration risk. This risk will, for example, also be higher in more specialised markets (e.g., a specific region, sector or theme) than in widely diversified markets (e.g., a worldwide allocation). The concentration risk for this subfund is Medium for the following reason : there is a concentration of the investments in the shares of companies in the food and beverage industry None None Medium Performance risk The risk to return, including the fact that the risk may vary High depending on the choices made by each collective investment undertaking, as well as the existence or nonexistence of, or restrictions upon, any third-party security. The risk depends in part on the market risk and on how active the management of the manager is. The performance risk for this sub-fund is High for the following reason : the volatility of the stock market and the currency of the sub-fund which are expressed in an other currency than the euro Capital risk The risks to capital, including the potential risk of erosion 4

5 Flexibility risk Inflation risk Environmental factors due to the redemption of shares and the distribution of profit in excess of the investment return. This risk can be limited by loss-mitigation, capital-protection or capitalguarantee techniques. Inflexibility both within the product itself, including the risk of premature redemption, and constraints on switching to other providers. This risk can mean that the UCI is unable to take the desired actions at certain times. It can be higher in the case of UCIs or investments subject to restrictive laws or regulations. This risk is dependent on inflation. It applies, for example, to bonds with a long term to maturity and a fixed income. The inflation risk for this sub-fund is Medium for the following reason : the sensitivity of the sub-fund with regard to the rate of interest Uncertainty concerning the changeability of environmental factors (such as the tax regime or amendments to laws or regulations) that could affect how the UCI operates. Medium The assessment of the exchange risk does not take account of the volatility of all currencies in which the assets in portfolio are denominated vis-à-vis the reference currency of the UCI. 3. Company information Fees and charges: Non-recurrent fees and charges charged to the investor (unless indicated otherwise, in the currency the sub-fund is denominated in or as a percentage of the net asset value per share) Subscription Redemption Switching between subfunds Trading fee Amount to cover the costs of the purchase/sale of assets During the initial Max.2% After the initial Max. 2% During the initial 0% After the initial max. 1%for the subfund Max 1% At maturity:0 % Before: max. 1% for the subfund If the trading fee for the new sub-fund is higher than that of the former sub-fund: the difference between the two. If the relevant amount for the new sub-fund is higher than that of the former sub-fund: the difference between the two. Recurrent fees and charges paid by the sub-fund (unless indicated otherwise, in the currency the subfund is denominated in or as a percentage of the net asset value per share) Fee for managing the Max. 0.1 CZK per share per six-month period. investment portfolio: + Max. 0.1% on an annual basis for risk management. Administration fee Max % of the net assets of the sub-fund per annum. Custodian s fee Max % of the net assets of the sub-fund per annum. Annual tax 0.01% per annum on the net assets. Other charges (estimate), The sicav will bear all expenses payable by it, including but not limited to its including the auditor s and any operating charges. The various sub-funds will be charged all the costs and directors fees expenses attributable to them. 5

6 4. Information concerning the trading of shares Types of share offered to the public: At the moment, only capitalisation shares are issued. The Board of Directors can at any moment decide to issue dividend shares. The shares will be in registered or bearer form at the shareholder s choice and will be issued in the latter case in denominations of 1, 5 and 25 shares. In any case, bearer shares will not be materially deliverable, may only by issued in electronic form and may only be held on a depository account with KBC Bank NV, or with any other credit institution within the meaning of Directive 2004/39/EC from which the Sicav has received guarantees which satisfy the directors that this issue or conversion will not result in the possession of these shares by a national of the United States of America or by an investor who does not qualify for share ownership as restricted by the Law of 13 February 2007 relating to specialized investment funds. The registered shareholders will receive confirmation of entry in the register of shareholders of the Sicav and, on request, a registered certificate. If a holder of bearer shares requests that his bearer shares be exchanged for registered shares, or vice versa, or requests the exchange of certificates of different denominations, he must bear the cost of such an exchange. Before bearer shares are issued and before registered shares are converted into bearer shares, the Sicav may require guarantees which satisfy the directors that this issue or conversion will not result in the possession of these shares by a national of the United States of America or by an investor who does not qualify for share ownership as restricted by the Law of 13 February 2007 relating to specialized investment funds. The forms required for transferring shares can be obtained from the administrative agent Currency for the calculation of the net asset value: CZK 4.3. Dividend payment : Not applicable Initial subscription period/day: From 1 st August 2013 till 3 th October 2013 (inclusive); settlement for value: 10 th October Initial subscription price, minimum investment: Initial subscription price: 10 CZK Minimum investment: countervalue in CZK of EUR. The sub-fund is only offered to the entities of KBC Group 4.6. Calculation of the net asset value: The net asset value per share as well as the issue and redemption prices will, unless otherwise indicated, be valuated twice a month, on the 16 th of each month (or the preceding Luxembourg Banking Business Day if this is not a Luxembourg Banking Business Day) and the last Luxembourg Banking Business Day of each month (for the month December the last but one Luxembourg Banking Business Day), each a Valuation Day ) ( D ) on the basis of the last known prices and the value of the assets held on behalf of the sub-fund concerned. If this price is not representative of their true value, these assets will be valuated on the basis of their foreseeable realisation price, which will be determined prudently and in good faith. First calculated NAV: Wednesday 16 October 2013 The net asset value per share of each class of shares will be expressed in the reference currency (as defined in the documents of sale of the shares) of the Sub-fund concerned and will be calculated on the Valuation Day by dividing the net assets of the Sicav corresponding to each class of shares - comprising the pool of assets less the pool of liabilities attributable to this class of shares on the Valuation Day concerned - by the number of shares in this class in circulation at that time. The net asset value per share arrived at in this way may be rounded up or down to the nearest unit of the 6

7 currency concerned, as determined by the Board of Directors. If, subsequent to the date on which the net asset value was calculated, a substantial change occurs in prices on the markets on which a substantial proportion of the Sicav s investments attributable to the class of shares concerned are traded or listed, the Sicav may cancel the first valuation and carry out a second valuation with a view to safeguarding the interests of the shareholders as a whole and of the Sicav. The net asset value of the various classes of shares will be calculated in accordance with the articles of incorporation Publication of the net asset value: Once calculated, the net asset value may be obtained from the financial services providers How to buy and sell shares and switch between sub-funds: Subscription, redemption and conversion orders will be accepted each Valuation Day by AM at the latest. Payment of the orders is to be affected the fifth Luxembourg Banking Business Day following the relevant Valuation Day (D+ 5) Market timing and late trading: Shares of the Sicav are not offered to serve as a vehicule for frequent trading that seeks to take advantage of short-term fluctuations in the concerned securities markets. This type of trading activity is often referred to as 'market timing' and could result in actual or potential harm to the Shareholders. Accordingly, the Sicav may reject any purchase of Shares that the Sicav reasonably believes may represent a pattern of market timing activity involving the funds of the Sicav. The Sicav takes all measures required to prevent any activity of 'late trading' and to assure that the subscriptions, redemptions and conversions, are accepted at a moment on which the net asset value will be applied to this transactions is unknown. 7