Tideway UCITS Funds. (Société d Investissement à Capital Variable) Sub-fund: Global Navigator. Management Company: Alceda Fund Management S.A.

Transcription

1 VISA 2013/ PC L'apposition du visa ne peut en aucun cas servir d'argument de publicité Luxembourg, le Commission de Surveillance du Secteur Financier Last updated: December 2012 PROSPECTUS (including appendices and articles of association) Tideway UCITS Funds (Société d Investissement à Capital Variable) Sub-fund: Global Navigator Management Company: Alceda Fund Management S.A. Custodian: M.M. Warburg & CO Luxemburg S.A. 1

2 Table of Contents Prospectus... 9 Management Company... 9 Custodian and Registrar- and Transfer Agent Central Administration Agent The Investment Advisor Legal status of investors General notes on trading Sub-fund shares General investment guidelines and restrictions Investment Policy Determination of the net asset value per share Issuance of shares Redemption and conversion of shares Risks factors Potential conflicts of interest Taxation on the Investment Company Taxation of shareholders income from shares Publication of the Share Value and the Issue and Redemption Prices Information for the investor Appendix Articles of Association I. Name, Registered Offices and Purpose of the Investment Company Article 1 Name Article 2 Registered offices Article 3 Purpose Article 4 General Investment Principles and Restrictions II. Duration, Merger and Liquidation of the Investment Company Article 5 Duration of the Investment Company Article 6 The Merger of the Investment Company with another UCITS Article 7 Liquidation of the Investment Company III. The Sub-funds, Duration, Merger and Liquidation of one or several of the Sub-funds59 Article 8 The Sub-funds Article 9 Duration of the Individual Sub-funds Article 10 The Merger of one or several of the Sub-funds Article 11 The Liquidation of one or several of the Sub-funds IV. Equity and Shares Article 12 Equity Article 13 Shares Article 14 Calculation of Net Asset Value per Share Article 15 Suspension of the Calculation of Net Asset Value per Share

3 Article 16 Issue of Shares Article 17 Restriction and Suspension of the Issue of Shares Article 18 Redemption and Conversion of Shares V. General Meeting of Shareholders Article 19 Rights of the General Meeting of Shareholders Article 20 Convening Article 21 Quorum and Voting Article 22 Chairman, Counting of Votes, Secretary VI. Board of Directors Article 23 Composition Article 24 Authority Article 25 Internal Organisation of the Board of Directors Article 26 Management Company Article 27 Fund Manager Article 28 Investment Advisor and Investment Committee Article 29 Frequency and Convening Article 30 Meetings of the Board of Directors Article 31 Records Article 32 Authorised Signatories Article 33 Incompatibilities Article 34 Indemnification VII. Auditor Article 35 Auditor VIII. Miscellaneous and Closing Conditions Article 36 Distribution of the Profits Article 37 Reports Article 38 Costs All costs, fees and expenses described above are subject to VAT where applicable Article 39 Financial Year Article 40 Custodian Article 41 Amendments to Articles of Association Article 42 Miscellaneous

4 The Investment Company Tideway UCITS Funds 5, Heienhaff L-1736 Senningerberg Board of Directors of the Investment Company Chairman of the Board of Directors Peter Doherty, resident in United Kingdom Members of the Board of Directors Uwe Krönert Director Alceda Fund Management S.A. L-1736 Senningerberg Michael Sanders Director Alceda Fund Management S.A. L-1736 Senningerberg Peter Doherty Partner Tideway Investment Partners LLP GB-SW1H 0HW London 4

5 Management Company (Grand Duchy of Luxembourg) Alceda Fund Management S.A. 5, Heienhaff L-1736 Senningerberg Equity on 31 December 2011: EUR , 23 Board of Directors of the Management Company Chairman of the Board of Directors Michael Sanders Chairman of the Board of Alceda Fund Management S.A. Members of the Board of Directors Heinrich Echter Director of Alceda Fund Management S.A., Senningerberg Jost Rodewald Director of Aquila Capital Management GmbH, Hamburg Roman Rosslenbroich Director of Aquila Capital Management GmbH, Hamburg Uwe Krönert Director of Alceda Fund Management S.A., Senningerberg Directors of the management company Marc Kriegsmann Helmut Hohmann Uwe Krönert Heinrich Echter 5

6 Custodian (Grand Duchy of Luxembourg) M.M. Warburg & CO Luxembourg S.A. 2, Place Dargent L-1413 Luxembourg Central Administration Agent (Grand Duchy of Luxembourg) WARBURG INVEST LUXEMBOURG S.A. 2, Place Dargent L-1413 Luxembourg Paying Agent (Grand Duchy of Luxembourg) M.M. Warburg & CO Luxembourg S.A. 2, Place Dargent L-1413 Luxembourg Paying and Information Agent (Federal Republic of Germany) MARCARD, STEIN & CO AG Ballindamm 36 D Hamburg Registrar- and Transfer Agent (Grand Duchy of Luxembourg) European Fund Administration SA 2, rue d Alsace L-1017 Luxemburg Investment Advisor (United Kingdom) Tideway Investment Partners LLP 83 Victoria Street London SW1H 0HW (United Kingdom) Auditor of the Investment Company and Management Company (Grand Duchy of Luxembourg) PricewaterhouseCoopers (PwC),, Société Coopérative 400, Route d Esch L-1471 Luxembourg 6

7 Tideway UCITS Funds (the Investment Company ) presented in this Prospectus (plus Annexes and Articles of Association) (hereinafter Prospectus ) is an Investment Company under the law of the Grand Duchy of Luxembourg (Société d Investissement à Capital Variable), which was founded for an unlimited period pursuant to Part I of the Law of the Grand Duchy of Luxembourg dated 17 December 2010 relating to Undertakings for Collective Investment (hereinafter Law of 2010 ) in the form of an umbrella fund with one or several Sub-funds. This Prospectus is only valid in combination with the latest published annual report that must not be older than last sixteen months. In addition, if the annual report is older than eight months, the investor must be provided with the latest available semi-annual report. It is however understood that in respect of a newly established fund, such reports will only become available on a later date, as further disclosed herein. The current Prospectus and the Key Investor Information Documents form the legal basis for the subscription to or acquisition of shares. The acquisition of shares implies acceptance by the investor of the provisions contained in the Prospectus, the Key Investor Information Documents and all approved and published amendments to the same. The Key Investor Information Documents will be provided free of charge to the investors in sufficient time to the purchase of shares. No information or declarations that deviate from the Prospectus and the Key Investor Information Documents may be provided. The Investment Company bears no liability for information or declarations that deviate from the current Prospectus and the Key Investor Information Documents. The Prospectus and the Key Investor Information Documents, as well as the relevant annual and semi-annual reports are available free of charge as durable mediums at the registered offices of the Investment Company, the Management Company, the Custodian as well as the Paying and Information Agent. The Sales Prospectus and the Key Investor Information Documents are likewise available on the website of the Management Company The aforementioned documents will be provided to the investor in hardcopy form on request. Further information may be obtained from the Investment Company at any time during normal business hours. 7

8 Notes for investors relating to the United States of America The Management Company can restrict or prohibit the possession of shares by any person registered as a taxpayer in the United States of America ("USA"). Natural persons who are taxpayers in the USA include, for example, persons who a) were born in the USA or in one of its territories or sovereign territories; b) are naturalised citizens (or green card holders); c) were born abroad to parents, or to one parent, who is/are USA citizen(s); d) without being a citizen of the USA, are predominantly resident in the USA; e) are married to a citizen of the USA. Legal entities that are taxpayers in the USA include, for example, a) companies or organisations founded under the laws of one of the 50 federal states or the District of Columbia; b) a company or partnership founded under an Act of Congress; or c) a pension fund, founded as a US trust. 8

9 Prospectus The Investment Company (the Investment Company ) described in this Prospectus (including the Articles of Association and appendices) is managed by Alceda Fund Management S.A. which will in turn be advised by Tideway Investment Partners LLP as the investment advisor. Enclosed with this Prospectus are Annexes relating to the respective Sub-funds, as well as the Articles of Association of the Investment Company. The Prospectus (including appendices) and the Articles of Association form a meaningful unit and complement each other. The Investment Company The Investment Company is a private limited company under the law of the Grand Duchy of Luxembourg (Société d Investissement à Capital Variable) with its registered office located at 5, Heienhaff, L-1736 Senningerberg. It was incorporated for an indefinite period under the name Tideway UCITS Funds on 15 July The Company has been entered in the commercial register kept by the Luxembourg District Court under registration number R.C.S. Luxembourg The Investment Company s financial year ends on 31 December of each calendar year. Its Articles of Association of the Investment Company were published on 16 August 2011 in the Mémorial, Recueil des Sociétés et Associations, the official gazette of the Grand Duchy of Luxembourg ("Mémorial"). The last amendment of the Articles of Association came into force on 16 March 2012 and has been published with the Commercial Register. Notice of this was published on 22 March 2012 in the Mémorial. Pursuant to the laws of the Grand Duchy of Luxembourg, the minimum capital of the Investment Company is EUR 1,250,000. This amount must be attained within a period of six months of the licensing of the Investment Company by the Luxembourg supervisory authorities. Focus here is on the net assets of the Investment Company. Management Company The designated Management Company of the Investment Company is Alceda Fund Management S.A. (the Management Company ), a public limited company pursuant to the laws of the Grand Duchy of Luxembourg. Its registered office is located at 5, Heienhaff, L-1736 Senningerberg. The Management Company was founded on 9 January 2007 for an indefinite period of time. Its Articles of Association were published in the Mémorial on 27 February The first amendment of the Articles of Association came into effect on 31 December 2007 and was published in the Mémorial on 28 February The 9

10 Management Company is registered in the Luxembourg Commercial Register under the number Luxembourg B The Management Company's financial year ends on 31 December of each year. The Management Company may not carry out any activities other than that of managing Undertakings for Collective Investments in Transferable Securities (UCITS) authorised under Directive 2009/65/EC and subsequent amendments (hereinafter Directive 2009/65/EC) with the exception of other Undertakings for Collective Investments (UCI) that do not fall under this directive, in respect of which the Management Company is subject to supervision but whose shares cannot be sold in other member states of the European Union in accordance with Directive 2009/65/EC, and the management of other Luxembourg and foreign investment vehicles (including SICARs). The Management Company may carry out all activities that are necessary or useful to promote the sale of such shares and to manage these UCITS/UCI and SICAR. It may enter into any transactions and take any measures that promote its interests or otherwise serve its purpose, provided they are in accordance with chapter 15 of the Law of The Management Company is responsible for the day-to-day administration and management of the Investment Company. It is entitled to perform all management and administrative operations and to exercise all rights on behalf of the Investment Company directly or indirectly related to the assets of the Investment Company. The Management Company complies with the requirements of the amended Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to specific Undertakings for Collective Investment in Transferable Securities. In relation to the management of the assets of the respective Sub-funds, the Management Company may, under its own responsibility and control and at its own cost or at the cost of the respective Sub-fund's assets, engage the services of an investment advisor. The Management Company is also entitled to subcontract services to third parties while retaining its own responsibility for, and control of, such services. Any such transfer of tasks must not in any way impair the Management Company s ability to effectively supervise the Investment Company. In particular, any such transfer of tasks must not impede the Management Company s ability to act in the interest of its shareholders. In relation to the management of the assets of the respective Sub-fund, the Management Company may, under its own responsibility and control and at its own cost or at the cost of the respective Sub-fund s assets, appoint a fund manager. In this event, the Prospectus shall be adapted accordingly. 10

11 Custodian The Custodian of the Investment Company is M.M. Warburg & CO Luxembourg S.A. having its registered office at 2, Place Dargent, L-1413 Luxembourg. The Custodian is a public limited company pursuant to the laws of the Grand Duchy of Luxembourg having a banking licence. The duties of the Custodian are governed by the Law of 2010, the custodian bank agreement, the Articles of Association and this Prospectus (including its appendices). It acts independently from the Management Company and exclusively in the interest of the shareholders. 11

12 Registrar- and Transfer Agent The Registrar- and Transfer Agent of the Investment Company is European Fund Administration having its registered office at 2 rue d`alsace, L-1017 Luxemburg. The tasks of the registrar and transfer agent consist of processing applications or orders for the subscription, redemption, conversion and transfer of shares and in maintaining the register of shareholders. Central Administration Agent The central administration of the Investment Company is WARBURG INVEST LUXEMBOURG S.A. (the Central Administration Agent ) with its registered office at 2, Place Dargent, L-1413 Luxembourg. The Central Administration Agent is inter alia responsible for fund accounting, the calculation net asset value per share and preparation and compilation of the annual report. It is also entitled to subcontract services to third parties while retaining responsibility for and control of those services. The Investment Advisor The Management Company has appointed Tideway Investment Partners LLP (the Investment Adviser ) with registered office at 83 Victoria Street, London SW1H 0HW (United Kingdom) to provide investment advisory services in respect of the different Subfunds of the Investment Company. The Investment Advisor's duties are to observe the financial markets, analyse the make-up of investments in the respective Sub-funds and to provide the Management Company with recommendations for investment while complying with the guidelines contained in the investment policy and the investment restrictions of the Investment Company generally and the respective Sub-funds. The Management Company is not bound by recommendations submitted by the Investment Advisor. The Investment Advisor has the right to seek advice from third parties at its own expense. However, the Investment Advisor is not authorised to assign the fulfilment of its responsibilities to a third party without the prior written consent of the Management Company. Should the Investment Advisor be granted such written consent by the Management Company and transfer its responsibilities to third parties, it shall remain liable for the ensuing costs. 12

13 The Investment Advisor is not authorised to procure ownership or possession of investors' monies or securities. Legal status of investors The monies contributed by shareholders of the Investment Company will be invested by the different Sub-funds in accordance with allowed the risk spreading in securities and/or other permitted assets pursuant to Article 41, Paragraph 1 of the Law of The invested funds and the assets acquired therewith constitute the respective Sub-fund assets which are segregated from the Management Company's own assets. Investors participate in the assets of their respective Sub-fund to the extent of their share holdings. The types of shares issued for the respective Sub-fund are indicated in the relevant appendix to this Prospectus. Registered shares, if issued, are entered in the share register maintained by the Registrar and Transfer Agent. In this case, investors shall receive confirmation of the entry in the share register, which is sent to the address listed in the register. Investors are not entitled to request the delivery of physical certificates on the issue of bearer or registered shares. The types of shares issued for the respective Sub-fund are indicated in the relevant appendix to this Prospectus. All shares in a Sub-fund have the same rights and obligations, unless the Investment Company decides to issue different classes of shares within a Sub-fund in accordance with the Articles of Association. Whether or not shares within a Sub-fund are listed or admitted to trading on a stock exchange or other regulated market will be set out in the relevant appendix to the Prospectus. It is however possible that shares in a Sub-fund may be traded on other markets (e.g. shares are included in unofficial regulated trading on a stock market). In such cases the market price underlying market trading or trading in other markets is not solely determined by the value of assets held in the respective Sub-fund, but by the principles of supply and demand. Therefore, this market price may vary from the calculated share price. The investment company draws the investors attention to the fact that any investor will only be able to fully exercise his investor rights directly against the UCITS, notably the right to participate in general shareholders meetings if the investor is registered himself and in his own name in the shareholders register. In cases where an investor invests in the UCITS through an intermediary investing into the UCITS in his own name but on behalf of the investor, it may not always be possible for the investor to exercise certain shareholder rights directly against the UCITS. Investors are advised to take advice on their rights. 13

14 General notes on trading Sub-fund shares Investing in the Sub-fund is seen as a long-term investment. The systematic purchase and sale of shares, exploiting time differences and/or possible weaknesses or gaps in the valuation system of the net asset value so-called market timing can only jeopardise the interests of other investors. The Investment Company rejects such arbitrage techniques. In order to avoid such practises, the Investment Company reserves the right to withdraw, to revoke or to suspend an investor s subscription or conversion orders, if there are reasons to suspect that the investor is involved in market timing. If this is the case, the Investment Company shall take appropriate measures to protect the other investors in the respective Sub-fund. General investment guidelines and restrictions The aim of the investment policy for each individual Sub-fund is to achieve a reasonable performance in the respective Sub-fund Currency. The investment policies of each Subfund are described in the relevant appendix to the Prospectus. General investment guidelines and restrictions outlined in Article 4 of the Articles of Association apply to all Sub-funds, unless deviations are provided for in the relevant appendix for the respective Sub-fund. Relevant Sub-fund assets are invested in compliance with the principles of risk spreading within the meaning of rules provided for in Part I of the Law of 2010 and in accordance with investment guidelines described in Article 4 of the Articles of Association as well as within the investment restrictions. Investment Policy The goal of the investment policy for the individual Sub-fund is to secure reasonable performance in the respective Sub-Fund currency. Investment policies for specific Subfunds are described in the relevant appendix to the Prospectus. General investment principles and restrictions outlined in Article 4 of the Articles of Association apply to all Sub-funds, unless deviations or additions are contained in the relevant appendix for the respective Sub-fund. Relevant Sub-fund assets are invested in compliance with the principles of risk spreading within the meaning of rules provided for in Part I of the Law 2010 and in accordance with investment principles described in Article 4 of the Articles of Association as well as within investment restrictions. 14

15 Notes on techniques and instruments As explanation of the general investment guidelines described in Article 4 of the Articles of Association, the Investment Company can in particular use for investment as well as for hedging purposes the following techniques and instruments for the respective Sub-fund: 1. Options An option conveys the right to buy ( buy option / call ) or to sell ( sale option / put ) a specific asset at a price specified in advance (the strike or exercise price) on a specific date in the future (expiry date) or during a specified period in the future. The price of a call or put option is the option premium. Both call and put options can be bought or sold for the respective Sub-fund provided that the respective Sub-fund is entitled to invest in the underlying asset in accordance with the investment objectives. 2. Financial futures Financial futures are unconditionally binding agreements between both contracting parties to buy or to sell a specific amount of an underlying asset at a price agreed upon in advance on a specified date, the expiry date. Financial futures can only be concluded for the respective Sub-fund provided the relevant Sub-fund is entitled to invest in the underlying assets in accordance with the investment objectives. 3. Securities lending In accordance with the circular 08/356 issued by the Commission de Surveillance du Secteur Financier (the CSSF ), each Sub-fund may lend up to 50% of the securities held in its portfolio to a borrower for a period of up to thirty days either directly or indirectly through a standardised securities lending system organised by a recognised clearing institution or a securities lending system organised by a financial institution subject to prudential supervision regarded by the CSSF as equivalent to those prescribed by Community law. The net risks that a UCI exposes against one counterparty that result from securities borrowing for buying or selling securities, have to be taken into account within the 20% investment limit of article 42 (2) of the Law of In addition, a guarantee must be provided to the Investment Company in accordance with II b) of the above circular prior to, or on, the transfer of the lent securities. It is not intended that the monies received by way of guarantee will be reinvested. 15

16 In all cases the borrower must be subject to prudential supervision considered by the CSSF as equivalent to those prescribed by Community law. If the agreement provides that the respective Sub-fund can make use of its rights relating to withdrawal and surrender at any time, more than 50% of the securities held in the respective Sub-fund s portfolio can be lent. 4. Currency futures The Investment Company may enter into contracts for currency futures in relation to the relevant Sub-fund. Currency futures are unconditional binding agreements between both contracting parties to buy or to sell a specific amount of an underlying currency at a price agreed upon in advance on a specified date, the expiry date. 5. Swaps The Investment Company is authorised to conclude swaps on behalf of the relevant Subfund assets within the scope of the investment guidelines. A swap is an agreement between two parties that entails exchanging the flow of payments, assets, revenues or risks. Swaps that can be concluded for the respective Sub-fund include, but are not restricted to, interest, currency, asset and credit default swaps. An interest swap is a transaction in which two parties exchange flows of payment that are related to fixed or variable interest payments. The transaction can be compared to accepting funds at a fixed rate of interest and the simultaneous lending of funds at a variable rate of interest. The nominal amounts of the assets are not exchanged. Currency swaps mainly involve an exchange of the nominal amounts of assets. They can be compared to accepting funds in one currency while simultaneously lending funds in another currency. Asset swaps, often called synthetic securities, are transactions that convert returns from a specific asset to another interest-based rate of return (fixed or variable) or to another currency in which the asset (e.g. bond, floating rate note, bank deposit, and mortgage) is combined with an interest or currency swap. An equity swap is characterised by the exchange of flows of payment, value adjustments and/or revenues from one asset against flows of payment, value adjustments and/revenues from another asset, with at least at one of the exchanged flows of payment, or revenues from an asset classed as a share or a share index. 16

17 The Investment Company may undertake swap transactions provided the contracting partner is a reputable financial institution specialised in such transactions and provided that the relevant Sub-fund is entitled to invest in the underlying assets in accordance with the investment objectives. 6. Methods of managing credit risks The Investment Company is entitled to deploy credit linked notes, viewed as securities within the meaning of Article 4 of the Articles of Association, for the respective Sub-fund as well as techniques and instruments (credit default swaps) used in the course of the efficient management of the respective Sub-fund, provided that these are issued by reputable financial institutions and comply with the investment policy of the Sub-fund. Credit default swaps (CDS) can be concluded for the respective Sub-fund. CDS are the most common and prolific instruments in the credit derivatives market. CDS enable the credit risk to be disassociated from the underlying credit relationship. This separate marketability of default risks extends the range of options for systematic risk and revenue management. With a CDS, the secured party (the protection buyer) can hedge against certain risks arising from a credit relationship for a fixed period by paying one of the periodic premiums calculated on the basis on the nominal amount and transferring the credit risk to the party furnishing security (the protection seller). The premium is partly based on the quality of the underlying reference entity (i.e. the credit risk). Risks to be shifted are defined in advance as credit events. If the credit event does not occur, the CDS buyer does not have to make a payment. Should the credit event occur, the buyer pays the amount defined in advance, e.g. the face value or a cash settlement (an amount equivalent to the difference between the face value of the reference asset and its prevailing market value after the credit event occurred). The buyer then has the right to tender a reference entity s asset defined in the agreement, whereas the buyer s premiums are suspended at this point. The respective Sub-fund is entitled to act as protection buyer or protection seller. CDS are traded over the counter (OTC) making it possible to take account of the more specific, non-standardised needs of both contracting parties although this also has an impact on liquidity. The commitment relating to obligations arising from the CDS should be in the exclusive interest of the Fund and in accordance with its investment policy. The investment restrictions provided for in Article 4 of the Articles of Association are applied to consider the underlying bonds of the CDS as well as the relevant issuer. CDS are valued on a regular basis using traceable and transparent methods. Both the Investment Company and the auditor shall supervise the comprehensibility and 17

18 transparency of the valuation methods and their application. If discrepancies are established, these are to be remedied by the Investment Company. The combined exposure resulting from CDS and other techniques and instruments shall not exceed the net assets of the respective Sub-fund. 7. Observations As new derivative instruments become available on the market, these may include these new derivative instruments to the techniques and instruments mentioned above provided they correspond to the investment objectives and that the respective Sub-fund is entitled to use them pursuant to supervisory and legal regulations. Determination of the net asset value per share The net asset value of the Investment Company is denominated in GBP ( Reference Currency ). The net asset value per share ( Share Value ) is denominated in the currency indicated in the respective appendix to the Prospectus (the Sub-fund Currency ) unless an alternative currency is indicated for any other classes of shares in the respective appendix to the Prospectus (the Share Class Currency ). The Share Value is calculated by the Central Administration Agent or one of its authorised representatives under the supervision of the Custodian in Luxembourg, on the particular Valuation Day ( Valuation Day ) that is indicated in the relevant appendix to this Prospectus. This figure is rounded up to two decimal places. The Share Value is calculated on each Valuation Day based on the value of the assets of the respective Sub-fund, minus the liabilities of the Sub-fund (the Sub-fund Net Assets ) and divided by the number of shares in circulation on the respective Valuation Day. This figure is rounded up to two decimal places. Further details on the determination of the Share Value can be found in Article 14 of the Articles of Association. Issuance of shares 1. Shares are issued on each Valuation Day at the issue price. The issue price is the Share Value increased by an eventual subscription fee in favour of the distributor whose maximum amount, if applicable, is detailed for the respective Sub-fund or share class in the relevant appendix to this. The issue price can be increased by fees or other charges incurred in the relevant country where shares will be offered. 18

19 2. Subscription applications for the subscription of registered shares, if any, may be submitted to the Registrar and Transfer Agent, the distributors and the Paying Agents. The collecting agents are obliged to forward the subscription applications to the Registrar and Transfer Agent without delay. The relevant date and time for the application of the cut off time is the date and time of reception of the respective subscription application by the Registrar and Transfer Agent. The Registrar and Transfer Agent accepts subscription applications on behalf of the Investment Company. Complete subscription applications received by the Registrar and Transfer Agent by (CET) on a Bank Working Day before a Valuation Day ( Order Acceptance Deadline ) will be settled on the basis of the Share Value on the subsequent Valuation Day. The Investment Company shall ensure, in all cases, that the issue of Shares is settled on the basis of a Share Value previously unknown to the investor. Should there be reason to suspect that the investor is operating late trading, the Investment Company is entitled to refuse acceptance of the application until the subscriber has had a chance to dispel any doubts relating to his subscription application. Complete subscription applications for the purchase of registered shares that are received after the Order Acceptance Deadline will be settled on the basis of the share value of the next following Valuation Day, provided that the counter value is available for the subscribed shares. A subscription application for the subscription of registered shares is complete when it indicates the surname and first name(s), the address, the date and place of birth, the profession and nationality of the investor, the number of shares subscribed and/or the amount to be invested and the name of the Sub-fund, and when it is signed by the investor. Furthermore, the subscription application should also include the type and number of personal identification presented by the investor as well as the name of the authority issuing the form of identification. A statement should also be included to state whether the investor holds an official office. The collecting agents shall confirm on the subscription application that details in the document presented matches those on the application itself. Upon receipt of the issue price at the Custodian, the bearer shares are transferred by the Custodian on behalf of the Management Company by crediting the institution at which the subscriber maintains his securities account. If consideration is to be returned out of the Investment Company s assets, in particular due to revocation, a dishonoured debit note or due to any other reason, the Investment Company shall redeem the relevant shares in the interest of the concerned Sub-fund. Any differences negatively affecting the Sub-fund s assets and resulting from any such 19

20 redemption will have to be borne by the respective subscriber. Revocations made pursuant to consumer protection laws are however excluded from such regulation. The issue price is payable within three Bank Working Days of the appropriate Valuation Day in the relevant Sub-Fund currency at the Custodian in Luxembourg. 3. Circumstances leading to the suspension of the issuance of shares are described in Article 17 of the Articles of Association. Redemption and conversion of shares 1. Shareholders are entitled to request the redemption of shares at the Share Value determined pursuant to Article 14 No 4 of the Articles of Association, after deduction of a redemption fee, if any, (the Redemption Price ). Shares can only be redeemed on a Valuation Day. If a redemption fee is levied, the maximum amount applicable for each Subfund and/ or class is indicated in the relevant appendix to this Prospectus. In certain countries, the Redemption Price may be reduced by taxes and other charges. Shares are cancelled when the Redemption Price is paid. 2. Payment of the Redemption Price and any other payments to shareholders are made via the Custodian and the Paying Agents. The Custodian is only obliged to effect payment to the extent that no legal provisions, e.g. currency regulations or other circumstances beyond the control of the Custodian prohibit the transfer of the Redemption Price to the country of the applicant. The Investment Company is entitled to compulsory redeem shares against payment of the Redemption Price should this appear to be necessary in the interest of the remaining shareholders or to protect the Sub-fund or the shareholders. 3. All or some of the shares can be converted to shares of another Sub-fund based on the applicable Share Value of the respective Sub-funds in accordance with Article 14 of the Articles of Association. A conversion may be subject to a conversion fee as described in the relevant appendix. If no conversion fee is levied, this is mentioned in respect of a Subfund or share class in the relevant appendix to the Prospectus. If different share classes within a Sub-fund are offered, shares can be converted from one class to another unless otherwise provided for in the relevant appendix to the Prospectus, provided that the investor fulfils the conditions for admission in the respective share class. The Investment Company can however reject an application for conversion for the respective Sub-fund if this appears necessary to preserve the interest of the Investment Company, or the Sub-fund or in the interest of the shareholders. 20

21 Complete applications for the redemption or conversion of registered shares may be submitted to the Registrar and Transfer Agent, the distributor or the Paying Agents. The collecting agents are obliged to forward the redemption or conversion applications to the Registrar and Transfer Agent without delay. The redemption or conversion application is deemed complete when the name and the address of the investor, the number or value of the shares to be redeemed or converted and the name of the Sub-fund (and in respect of conversions the name of the new Subfund) is indicated and when it has been signed by the shareholders. Complete redemption or conversion applications for bearer shares are forwarded by the institution where the investor maintains his securities account to the Registrar and Transfer Agent. 4. Complete redemption and conversion applications which have been received before the acceptance deadline will be processed at the next valuation day as described in the relevant appendix for each Sub-fund and share class, less any redemption or conversion fee. The Investment Company shall ensure that, in all cases, the redemption and/or conversion of shares is processed on forward basis, i.e. a Share Value previously unknown to the investor. Complete redemption and complete conversion applications received after the Order Acceptance Deadline are settled at the Share Value on the subsequent Valuation Day, less any back-end load or conversion fee. The controlling date for receipt of the application for redemption or conversion is, for registered shares, the date on which it is received by the Registrar and Transfer Agent or, for bearer shares, the date on which it is received by the Custodian. Payment of the Redemption Price is made not later than three Valuation Days following the corresponding Valuation Day in the respective Sub-fund currency. In the case of registered shares, payment is made to an account designated by the shareholder. Any fractional amounts resulting from the conversion of bearer shares will be paid out by the Custodian in cash. 5. The Investment Company is authorised to temporarily suspend the redemption or conversion of shares due to the suspension of the calculation of the net asset value. 6. With the prior approval of the Custodian and in the interest of shareholders, the Investment Company is entitled to postpone substantial redemptions until respective Subfund assets have been sold without delay. In this case, shares are redeemed at then applicable Redemption Price. The same applies to applications for conversion of shares. 21

22 However, the Investment Company shall ensure that sufficient liquid funds are available to the respective Sub-funds to enable the redemption or conversion of shares under normal conditions upon request of the investors. Risks factors Risk management t procedure The Management Company will use a risk management procedure according to the Law of 2010 and any other regulations including CSSF circular 11/512. With the help of this risk management procedure the management company detects and measures the market risks, liquidity risks, counterparty risks and any other risks including the operational risks which are essential for the fund. An investment in any of the Investment Company s Sub-funds is associated with the following particular risk factors: Risk of Interest Rate Changes To the extent a Sub-fund invests directly or indirectly in interest-bearing assets, it is exposed to interest-rate risk. If market interest rates rise, the value of the interest-bearing assets held by the Sub-fund may decline substantially. This applies to an even greater degree if a Sub-fund also holds interest-bearing assets with a longer residual time to maturity and a lower nominal interest rate. Creditworthiness Risk The creditworthiness (solvency and willingness to pay) of the issuer of a security or moneymarket instrument directly or indirectly held by a Sub-fund may subsequently fall. This usually leads to drops in the price of the security, which surpass those caused by the general market fluctuations. General Market Risk If a Sub-fund invests directly or indirectly in securities and other assets, it is exposed to general trends and tendencies on the markets, especially the securities markets, which are based on manifold, sometimes irrational factors. Such factors may lead to a more significant and longer lasting decline in prices affecting the entire market. Securities from top-rated issuers are subject to essentially the same general market risk as other securities and assets. 22

23 Company-Specific Risk The price development of the securities and money market instruments directly or indirectly held by a Sub-fund is also dependent on company-specific factors, for example, the issuer s business situation. If the company-specific factors deteriorate, the price of the respective security may drop significantly and for an extended period of time, possibly even without regard to an otherwise generally positive market trend. The issuer of a security directly or indirectly held by a Sub-fund or the debtor of a claim belonging to a Sub-fund may become insolvent. This could result in the corresponding assets of the Sub-fund becoming economically worthless. Address default risk Issuers of securities held by the Sub-fund and/or debtors of a receivable owned by the Investment Company may become insolvent. The relevant Sub-fund assets can therefore lose their value. Counterparty Risk If the Sub-fund engages in over-the-counter trading, there is the risk beyond the general address default risk that the counterparty to the transaction may default or fail to meet its obligations in full. This particularly applies to transactions involving techniques and instruments. Currency Risk If a Sub-fund directly or indirectly holds assets denominated in foreign currencies, it is exposed to a currency risk (if foreign currency positions have not been hedged). Any devaluation of the foreign currency against the base currency of the Sub-fund would cause the value of the assets denominated in the foreign currency to fall. Country and Region Risk If a Sub-fund focuses its investments on certain countries or regions, this also reduces risk diversification. Consequently, the Sub-fund is particularly dependent on the development of individual or interdependent countries and regions, or of companies based and/or operating in those countries or regions. Concentration Risk If a Sub-fund focuses its investments on certain markets or types of investment, by definition this concentration does not allow the same scope of diversification of risks across 23

24 different markets as would be possible if investments were not so concentrated. Consequently, a Sub-fund is particularly dependent on the development of these investments or of individual or related markets or of companies included in those markets. Country and Transfer Risks Economic or political instability in countries in which a Sub-fund is invested may lead to a situation in which a Sub-fund does not receive part or all of the monies owed to it in spite of the solvency of the issuer of the respective security or other asset. Currency or transfer restrictions or other legal changes, for example, may be of significance in this regard. Liquidity Risk Even relatively small orders for purchases or sales of illiquid securities (securities that cannot be sold readily) in particular can lead to significant price changes. If an asset is not liquid, there is the risk that the asset cannot be sold or can only be sold at a significant discount to the purchase price. The lack of liquidity of an asset may cause its purchase price to increase significantly. Custodial Risk Custodial risk is the risk arising from the possibility that to the detriment of the Sub-fund, the Sub-fund could be denied access, in whole or in part, to investments held in custody in case of bankruptcy, negligence, wilful misconduct or fraudulent activity on the part of the custodian or sub-custodian. Emerging Markets Risks Investing in emerging markets means investing in countries not classified by the World Bank as high gross national income per capita (i.e. not developed ). In addition to the specific risks of the particular asset class, investments in these countries are subject to greater liquidity risk and general market risk. Additionally, increased risks may arise in connection with the settlement of transactions in securities in these countries, especially as it may not be general practice or even possible to deliver securities directly when payment is made in such countries and the Custodian may not be willing to bear any settlement risk but requires any respective Investment Company s Sub-funds to hold it harmless. Any loss arising therefrom would have to be borne directly by the Investment Company/the Subfund (please see also below Settlement Risk ). In addition, the legal and regulatory environment, as well as the accounting, auditing and reporting standards in emerging markets may deviate, to the detriment of the investors, substantially from the levels and standards that are considered standard international practice. There may also arise increased custodial risk in such countries, which may, in particular, also result from differing disposal methods for acquired assets. 24

25 Specific Risks of Investing in High-Yield Investments High-yield securities means interest-bearing investments that are either rated noninvestment grade by a recognised rating agency or are not rated at all, but that would presumably receive a rating of non-investment grade if they were rated. Such investments are subject to the same general risks of these asset classes, but the level of risk is greater. In particular, such investments are normally associated with increased creditworthiness risk, the risk of interest rate changes, general market risk, company-specific risk and liquidity risk. Risk of changes to the Articles of Association, the investment policy and other basic principles of the Investment Company. The shareholder is advised that the Articles of Association, the investment policy of a Subfund and the other basic principles of a Sub-fund may be amended as permitted. In particular, by changing the investment policy of a compliant Sub-fund within the permissible spectrum of investment, risks related to the Sub-fund may also be subject to change. Performance Risk It cannot be guaranteed that the investment objectives of a Sub-fund or the investment performance desired by the investor will be achieved. The net asset value per share may also fluctuate, and in particular, may fall, causing investors to incur losses, especially in consideration of risks that individual assets acquired at the Sub-fund level are subject to in general and the risks that are entered into in the selection of individual assets in particular. Investors assume the risk of receiving a lesser amount than they originally invested. Neither the Investment Company nor any third parties offer guarantees as to specific performance of Sub-fund investments, unless a guarantee is explicitly expressed in the respective information sheet. (Sub)Fund Capital Risk Because of the risks described here to which the valuation of the assets held in the (sub) fund/share class is subject, there is the risk that the (sub)fund asset value or a part thereof that can be allocated to a (specific a share class will decrease. Excessive redemption of Sub-fund shares or an excessive distribution of returns on investments could have the same effect. A reduction in the capital of the (sub)fund or the capital that can be allocated to a share class could make the management of the Investment Company, a Sub-fund or a share class unprofitable, which could lead to the liquidation of the Investment Company, a Sub-fund or a share class and to investor losses. 25

26 Risk of Restricted Flexibility The redemption of Sub-fund shares may be subject to restrictions. If redemption of shares is suspended or delayed, investors cannot redeem their shares and are compelled to remain invested in the Sub-fund for a longer period of time than originally intended or desired, and their investments continue to be subject to the risks inherent to the Sub-fund. If a Sub-fund or a share class is liquidated or if the Investment Company exercises the right to force redemption of shares, investors no longer have the opportunity to remain invested. The same applies if the Sub-fund or share class held by the investors merges with another fund, Sub-fund or share class, in which case the investors automatically become holders of shares in another fund, Sub-fund or share class. The subscription fee levied when shares are acquired could reduce or even eliminate any gains on an investment, particularly if the investment is held for only a short period of time. If shares are redeemed in order to invest the proceeds in another type of investment, investors may, in addition to the costs already incurred (e.g. subscription fee for the purchase of shares), incur other costs, such as a redemption fee for the Sub-fund held or extra sales charges for the purchase of other shares. These events and circumstances could result in investor losses. Inflation Risk Inflation risk is the risk that assets will lose value because of a decrease in the value of money. Inflation can reduce the purchasing power of income made on an investment in a Sub-fund as well as the intrinsic value of the investment. Different currencies are subject to different levels of inflation risk. Risk of the Liabilities of Individual Share Classes Affecting Other Share Classes Share classes of a Sub-fund are not treated as separate entities for purposes of liability law. In relation to third parties, the assets allocated to a certain share class are not liable for just the debts and liabilities that can be allocated to that share class. If the assets of a certain share class should not be sufficient to cover the liabilities (e.g. for any existing currencyhedged share classes, liabilities arising from the share class specific currency hedging transactions) that can be allocated to this share class, those liabilities may have the effect of reducing the value of other share classes of the same Sub-fund. Risk of Changes in Underlying Conditions Over time, the underlying conditions (e.g. economic, legal or tax) may change. This could have a negative effect on the investment and on the treatment of the investment by the investor. 26