Allra S.A., SICAV Société d investissement à capital variable Registered office: 33A, avenue J.F. Kennedy L-1855 Luxembourg R.C.S. Luxembourg: B 177.315 PROSPECTUS March 2015 Distribution of this prospectus is not authorised unless it is accompanied by a copy of the latest available annual report of the Fund containing the audited balance-sheet and a copy of the latest semi-annual report, if published after such annual report. The prospectus of the Fund (the "Prospectus") and the various annual and semi-annual reports may be obtained free of charge from all paying agents and sales agencies. It is prohibited to publish information on the Fund that is not contained in this Prospectus, the documents mentioned herein, the latest annual report and any subsequent semi-annual report.
TABLE OF CONTENT SECTION I: DESCRIPTION OF THE SUB-FUNDS... 7 ALLRA STRATEGI RÄNTA... 8 ALLRA LAGOM... 13 ALLRA MODIG... 17 ALLRA STRATEGI FÖRSIKTIG... 21 ALLRA STRATEGI LAGOM... 25 ALLRA STRATEGI MODIG... 29 SECTION II: GENERAL PROVISIONS... 33 MANAGEMENT AND ADMINISTRATION... 33 1. THE FUND... 35 Structure of the Fund... 35 Legal aspects... 36 2. INVESTMENT OBJECTIVES AND POLICY... 36 3. INVESTING IN THE FUND... 37 NAV... 37 Issue and conversion of shares... 39 Redemption of shares... 42 Suspension of the calculation of NAV and of the issue, conversion and redemption of shares... 43 4. DISSOLUTION AND MERGER OF THE FUND AND OF ITS SUB-FUNDS... 44 Dissolution of the Fund... 44 Dissolution of a Sub-Fund... 45 Division of a Sub-Fund... 46 Mergers of the Fund or of Sub-funds with another UCITS or other sub-funds thereof; mergers of one or more sub-funds within the Fund; division of sub-funds... 46 5. DIVIDEND POLICY... 47 6. CUSTODIAN BANK... 47 7. CENTRAL ADMINISTRATIVE AGENT AND DOMCILIARY AGENT... 48 8. PORTFOLIO MANAGERS/ INVESTMENT ADVISORS... 48 9. TAXATION... 48 10. FOREIGN ACCOUNT TAX COMPLIANCE ACT ("FATCA")... 49 11. CHARGES AND EXPENSES... 50 12. SHAREHOLDER INFORMATION AND COMPLAINTS HANDLING... 51 13. INVESTMENT RESTRICTIONS... 51 Investment restrictions... 51 Financial techniques and instruments... 57 14. INVESTMENT RISKS... 60 15. COLLATERAL MANAGEMENT... 67 Page 2
DEFINITIONS 1915 Law means the Luxembourg law of 10 August 1915 on commercial companies, as amended 2010 Law means the Luxembourg law of 17 December 2010 on undertakings for collective investment, as amended Board Business Day Calculation Day Conversion Cut-Off Time CSSF Dealing Day Directive 2009/65/EC Directors EEA ETF EU EUR means the board of directors of the Fund means any day on which banks in Luxembourg and Sweden are open for normal banking business (excluding Saturdays, Sundays, 24 December, 31 December and in addition the business day preceding Swedish Midsummer day) means, unless otherwise determined by the Directors and notified to shareholders in advance, every day on which the NAV per share is calculated for each Dealing Day means a specified time on the relevant dealing day as set out for each sub-fund separately in Section I means the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg means the relevant dealing day as set out for each sub-fund separately in Section I means Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) means members of the Board of the Fund means the European Economic Area which includes each of the Member States of the European Union and the three States of the European Free Trade Association (Iceland, Liechtenstein, and Norway) means exchange-traded funds means the European Union means Euro Page 3
Fixed Income Securities Fund Investment Grade KIID LIBOR Management Company NAV OTC Portfolio Manager Pension Plan Redemption Cut-Off Time "Savings Directive SEC means any interest bearing securities, which are not classified as money market instruments, which include sovereign, municipal or corporate bonds (such bonds may be rated or unrated, fixed and/or floating), notes, certain classes of preferred stock or money market instruments in each case listed or traded on a Regulated Market and commercial paper means Allra S.A., SICAV means rated BBB- or above by Standard & Poor s, Baa3 or above by Moody s, or an equivalent rating from any other recognised rating agency means Key investor information document means London Inter-Bank Offered Rate means Luxembourg Investment Solutions S.A means net asset value, which is the aggregated value of assets attributable to each entity minus the total liabilities of that entity means over the counter means Allra Pension AB means (i) institutions for occupational retirement pension or similar investment vehicles, set up on one or more employers initiative for the benefit of their employees and (ii) companies of one or more employers investing funds they hold, to provide retirement benefits to their employees and (iii) any corporate or sovereign pension plan, including but not limited to the Swedish Pension Agency, created for the direct and indirect benefit of related retirees of such pension plan (i) institutions for occupational retirement pension or similar investment vehicles, set up on one or more employers initiative for the benefit of their employees and (ii) companies of one or more employers investing funds they hold, to provide retirement benefits to their employees and (iii) any corporate or sovereign pension plan, including but not limited to the Swedish Pension Agency, created for the direct and indirect benefit of related retirees of such pension plan means a specified time on the relevant dealing day as set out for each sub-fund separately in Section I means the Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments means the Securities and Exchange Commission of the United States of America Page 4
SEK SICAV Sub-Fund Swedish Agency Pension means Swedish Kroner means société d investissement à capital variable means one of the sub-funds of the Fund, each a Sub-Fund or collectively Sub-Funds means the Swedish government agency in charge of the national retirement pension in Sweden Subscription Cut-Off Time UCITS USD Valuation Day means a specified time on the relevant dealing day as set out for each sub-fund separately in Section I means the Swedish government agency in charge of the national retirement pension in Sweden means United States dollar means the Business Day on which the net asset value per Share of a Sub-Fund is determined, as set out in Section I. Unless otherwise specified in Section I; where valuation of the net asset value per Share occurs daily, each Business Day shall be a Valuation Day Page 5
INTRODUCTION The Fund is a SICAV incorporated as a société anonyme registered under Part I of the 2010 Law. This registration may not be interpreted as a positive evaluation on the part of the supervisory authority as to the contents of this Prospectus or as to the quality of the securities offered and held by the Fund. Any representation to the contrary is unauthorised and unlawful. This Prospectus does not constitute either an offer or a solicitation by anyone in any jurisdiction in which such offer or solicitation is not allowed. The Fund represents and warrants that its units/shares will not be offered, sold or delivered to US investors. US investors for this purpose are defined as (i) citizens or residents of the United States, or other persons or entities whose income is subject to US federal income tax regardless of source or (ii) that are considered to be US persons pursuant to regulation S of the US Securities Act of 1933 and/or (iii) the US Commodity Exchange Act, as amended. In particular, the shares of the Fund have not been registered with the SEC and may therefore not be offered in the United States of America or in any state, territory or possession thereof or areas subject to its jurisdiction. The Sub-Funds may be registered in different marketing countries. No person is authorised to publish any information other than that contained in this Prospectus or in the documents referred to herein and that are available for consultation by the public. Board assumes responsibility for all information contained in this Prospectus as at the date of its publication. Potential subscribers to the Fund should inform themselves about the laws and regulations in force in their country of citizenship, residence or domicile that may apply to the subscription, acquisition, holding, conversion or redemption of shares in the Fund. This Prospectus may be updated to take into account significant changes made to this document. For this reason, it is recommended that subscribers inquire at the Fund with regard to the publication of any more recent Prospectus. The attention of potential subscribers is drawn to the fact that this Prospectus is composed of Section I, on the regulations applicable to each Sub-Fund, and Section II, on the regulations to which the Fund as a whole is subject. Page 6
SECTION I: DESCRIPTION OF THE SUB-FUNDS List of available Sub-Funds - Sub-Fund 1: Allra Strategi Ränta - Sub-Fund 2: Allra Lagom - Sub-Fund 3: Allra Modig - Sub-Fund 4: Allra Strategi Försiktig - Sub-Fund 5: Allra Strategi Lagom - Sub-Fund 6: Allra Strategi Modig Unless otherwise indicated in the tables below, each Sub-Fund of the Fund is subject to the general regulations as set out in Section II of this Prospectus. Page 7
Allra Strategi Ränta 1 This section describes the characteristics of the Sub-Fund Allra Strategi Ränta (the Strategi Ränta Sub-Fund ) and all of the information contained therein should be read in conjunction with the general provisions as set out in Section II of the Prospectus. 1. Investment Objective The Strategi Ränta Sub-Fund s objective is to achieve an attractive level of total return (capital growth and income) for its investors through investments in a portfolio of bonds and other fixed and floating rate securities, denominated in any currency and for an ancillary part of its assets in shares or units in collective investment schemes which are replicating one or more of the before-mentioned instruments. These fixed income securities will predominantly be issued by corporate issuers, governments, government agencies and supra-national entities. However other types of fixed income securities and to some extent equities and equity related investments for a limited part of the net assets of the Sub-Fund are also eligible investments for the Sub-Fund. 2. Investment Policy The Strategi Ränta Sub-Fund will mainly invest its assets in debt securities, bonds, notes, commercial paper, other fixed-interest or floating-rate securities (including securities issued on a discount basis), money market instruments, convertible, exchangeable and warrant bonds and convertible debentures issued by global corporate and government issuers located in developed countries and will invest for a small part of its assets in debt securities issued by government issuers located in emerging market countries. A large part of these investments will carry investment-grade rating, while non-investment-grade investments are also eligible investments for the Sub-Fund. The intention is to invest a large part of the investments into liquid transferable securities listed on or traded on regulated markets in accordance with the Market in Financial Instruments Directive (MiFID), or on an regulated market outside the EEA, or recently issued transferable securities which will be listed on a regulated market within one year of issue according to their terms at issue. A large part of the securities will normally have up to medium-term maturities (up to 7 years). In general, top priority from an investment policy viewpoint will be given to diversification in terms of markets, sectors, borrower quality, companies and maturity structures in line with interest-rate expectations. In addition, the Strategi Ränta Sub-Fund may invest its assets directly or indirectly in equities, equity related investments, equity rights and warrants as well as shares, other equity shares and dividend-right certificates, which could be acquired directly, or through the exercise of conversion and subscription rights or warrants, and warrants remaining after the separate sale of ex-issues and any equities acquired with these warrants. Additionally, the Strategi Ränta Sub-Fund may also invest in government and other nongovernment issued debt and debt-related securities denominated in any currency. Generally, debt securities and claims include bonds, notes, all types of asset-backed securities and mortgage-backed securities and similar fixed- and floating-rate secured or unsecured debt 1 Strategi Ränta means Strategy Rates Page 8
instruments issued by international and supranational organisations, public corporations, private borrowers and semi-public issuers, as well as similar securities. The Strategi Ränta Sub-Fund may not invest more than 20% of its net assets in asset-backed securities or mortgage-backed securities. The Strategi Ränta Sub-Fund may also invest in other assets, including collective investment schemes, other transferable securities, cash and near cash, deposits, warrants, money market instruments and other derivative instruments denominated in a European currency or any global currency. The Strategi Ränta Sub-Fund can also invest into alternative strategies/financial derivatives in order to achieve the investment objective and/or to reduce risk and/or to manage the Strategi Ränta Sub-Fund more efficiently. These alternative strategies may thus be used to either hedge interest/currency exposure or add performance to the Strategi Ränta Sub-Fund. The Company may, as a main element in achieving the investment policy for the Strategi Ränta Sub-Fund, within the statutory limits, use special techniques and financial instruments whose underlying assets are eligible investments, such as securities, money market instruments and other financial instruments. The Strategi Ränta Sub-Fund does gain exposure via financial derivatives in its investment strategies. As the Strategi Ränta Sub-Fund may be invested in securities denominated in other currencies than the reference currency of the Strategi Ränta Sub-Fund, the Portfolio Manager may decide, depending on his market expectations to hedge this foreign exchange exposure partly or completely from time to time back into the reference currency of the Strategi Ränta Sub- Fund. The Portfolio Manager might also use foreign exchange derivatives to add leverage to its strategy. The Strategi Ränta Sub-Fund may also lend securities held in its portfolio to third parties ("securities lending") for the purposes of efficient portfolio management within the meaning of, and under the conditions set out in, applicable laws, regulations and circulars issued by the CSSF from time to time as well as Section II of this Prospectus. 3. Profile of the typical investor The Strategi Ränta Sub-Fund is suitable for investors who are able to tolerate moderate risk and wish to invest in a broadly diversified portfolio of mainly corporate bonds, sovereigns and alternative strategies. Investors are likely to use this Strategi Ränta Sub-Fund to complement an existing core bond portfolio and core equity portfolio for enhanced diversification and should have an investment horizon of at least 5 years. Page 9
4. Risk Profile of the Strategi Ränta Sub-Fund In general, the Strategi Ränta Sub-Fund can be affected by the following risk factors as described further in Section II of the Prospectus: Counterparty risk Credit risk Currency risk Currency Hedging risk Derivative risk Emerging Markets Country risk Interest rate risk Liquidity risk Securities lending risk Volatility risk Tax related risk In addition to the general risk factors as mentioned above, potential investors should be particularly aware of certain fund specific risks: The Strategi Ränta Sub-Fund s risk profile may be higher relative to other bond funds due to its potential investments in securities with a lower rating. The underlying debt instruments may, or can, present a greater risk in terms of downgrading or may exhibit a greater default (credit) and interest rate risk than debt instruments issued by investment grade issuers. Potential higher return should be viewed as compensation for the greater degree of risk. The Strategi Ränta Sub-Fund may utilise financial derivative instruments for investment purposes in pursuing its investment objective and its strategy (in addition to use for efficient portfolio management or hedging purposes). Use of leverage via derivatives for other reasons than for hedging purposes may result in increased volatility in the NAV of the Strategi Ränta Sub-Fund, and can also lead to increased counterparty risk. The markets in options, futures, forwards and swaps are volatile; both the opportunity to achieve gains as well as the risk of suffering losses are greater than with investments excluding financial derivative instruments. 5. General information Reference currency: SEK which is the currency in which the NAV of shares in the Strategi Ränta Sub-Fund is calculated. Investments will be made in the currencies that are most suitable for the performance of the Strategi Ränta Sub-Fund and might deviate from the reference currency. Dealing Day: applications for subscriptions, redemptions and conversions for Shares can be made on any Valuation Day for the relevant Sub-Fund prior to 11:00 CET (the Subscription, Redemption and Conversion Cut-Off time ) provided the applications are received in good order. Applications for subscriptions, redemptions and conversion received after such time will be dealt with on the following Valuation Day. The value of the assets of the Sub-Fund is determined as at the end of the relevant Valuation Day. Page 10
Calculation Day: the actual calculation of the value of the assets of the Sub-Fund will take place on the following Business Day. Dividend policy: This Strategi Ränta Sub-Fund pursues a policy of accumulation. Share classes: Class ISIN A (SEK) LU0910945848 Class A shares are restricted to institutional investors and Pension Plan investors. Shares are issued in the form of registered shares without certificates representing the Shares. 6. Fees and expenses Class A (SEK) Strategi Ränta Sub-Fund Subscription Fee 0,00% Portfolio Management Commission Management Company Fee Taxe d abonnement up to 1,45% p.a. up to 0,05% p.a. 0,01% p.a. as described in Section II of this Prospectus Section 9. Taxation In addition to the above the Strategi Ränta Sub-Fund will incur fees to be paid to the Central Administrative Agent and the Custodian Bank, which are further specified in Section II of this Prospectus. In addition the following fees will be applicable: The Portfolio Manager is entitled to a portfolio management commission detailed above, which is calculated (all taxes excluded) monthly on the average total net assets of the Strategi Ränta Sub-Fund (excluding those net assets held in the form of investments in other investment funds managed or controlled by entities of the same Portfolio Manager). This fee is payable monthly in arrears. 7. Performance The performance of this Strategi Ränta Sub-Fund is presented in a histogram included in the KIID. 8. Portfolio management The Management Company appointed the Portfolio Manager having its registered office at Sveavägen 24-26, 111 57 Stockholm, Sweden as portfolio manager of this Strategi Ränta Sub- Fund. The Portfolio Manager is an asset management company, authorised and regulated by the financial supervisory authority in Sweden. The firm was founded as a private limited liability Page 11
company in 2008 and is active in the area of portfolio management services in Sweden. The Strategi Ränta Sub-Fund was renamed on 19 March 2015 and has been launched on 24 September 2013 with the former designation Prognosia Fund Gravity. 9. Limits concerning global exposure The global risk exposure calculation method in accordance with applicable laws and regulations can be prepared based either on the commitment approach or the value at risk approach (relative or absolute). The method used for the determination of the global exposure of the Sub-Fund is the commitment approach. The commitment approach is designed to ensure that when calculating the global exposure of financial derivative instruments held within a Sub-Fund, a calculation is made as to the market value of the assets underlying the financial derivative instruments, or the notional value of an equivalent underlying asset. Generally the commitment approach is only to be used where the types of financial derivative instruments used can be translated in a relatively straightforward manner into the underlying property. Page 12
Allra Lagom 2 This section describes the characteristics of the Sub-Fund Allra Lagom (the Lagom Sub- Fund ) and all of the information contained therein should be read in conjunction with the general provisions as set out in Section II of the Prospectus. 1. Investment Objective The investment objective of the Lagom Sub-Fund is to generate long term capital appreciation to its shareholders by investing mainly, directly or indirectly, in equity and/or equity related instruments. 2. Investment Strategy and Policy The Lagom Sub-Fund is a fund that invests directly in equity and equity related instruments and on ancillary basis in fixed income and fixed income related instruments. The Lagom Sub- Fund can also make investments in other financial instruments in order to increase the potential proceeds or reduce the risks. The assets of the Lagom Sub-Fund may be invested in transferable securities, money market instruments, shares or units of collective investment schemes, derivative instruments and deposits with credit institutions. The management strategy of the Lagom Sub-Fund's composition may vary greatly over time depending on market conditions. The ambition is however to over time have a global and diversified equity or equity related portfolio. The active asset allocation within the Sub-Fund aims to invest in global markets with emphasis on developed world equities with a limited exposure to emerging markets and to some extent global fixed income investments, with a view to achieve positive absolute returns with, over the long run, moderate risk for investors At least 90% of the Sub-Fund related investments should, under normal circumstances and over time, be directly or indirectly invested in equity or equity related investments. The intention is to invest a large part of the investments into liquid transferable securities listed on or traded on regulated markets in accordance with the Market in Financial Instruments Directive (MiFID), or on a regulated market outside the EEA. The investment policy of the Lagom Sub-Fund is global and diversified and therefore not limited to any particular industry. Any investments into collective investment schemes could be in so-called ETFs, i.e. exchange-traded funds. ETFs refer to funds and fund companies pursuant to point 13 (1) (A) (h) of Section II ( Investment Instruments ) of this Prospectus. The direct investment in units or shares of collective investment schemes shall never exceed 10% of the Sub-Funds net assets. The Lagom Sub-Fund may not invest more than 20% of its net assets in asset-backed securities or mortgage-backed securities. 2 Lagom means Moderate Page 13
The assets of the Lagom Sub-Fund may be invested in derivative instruments, subject to compliance with point 13 (1) (A) (f) of Section II ( Investment Instruments ) of this Prospectus, including OTC derivative instruments. The assets of the Lagom Sub-Fund may be invested in money market instruments referred to in point 13 (1) (A) of Section II ( Investment Instruments) of this Prospectus. In addition, the Lagom Sub-Fund's assets may be invested in transferable securities and money market instruments as referred to in point 13 (1) (B) of Section II ( Investment Instruments ) of this Prospectus. The Lagom Sub-Fund may also lend securities in its portfolio to third parties ("securities lending") for the purposes of efficient portfolio management within the meaning of, and under the conditions set out in, applicable laws, regulations and circulars issued by the CSSF from time to time as well as Section II of this Prospectus. 3. Profile of the typical investor The Lagom Sub-Fund is suitable for investors who are able to tolerate risk and wish to invest in a broadly diversified portfolio of equities and equity related instruments, and to some extent also fixed income and fixed income related instrument. Investors are likely to use this Lagom Sub-Fund to complement an existing core bond portfolio and core equity portfolio for enhanced diversification, and any such investor should have an investment horizon of at least 5 years. 4. Risk Profile of the Lagom Sub-Fund In general, the Lagom Sub-Fund can be affected by the following risk factors as described further in Section II of the Prospectus: Counterparty risk Credit risk Currency risk Currency Hedging risk Derivative risk Emerging Markets Country risk Interest rate risk Liquidity risk Securities lending risk Volatility risk Tax related risk In addition to the general risk factors as mentioned above, potential investors should be particularly aware of certain fund specific risks: The Lagom Sub-Fund s risk profile may be higher relative to other equity or mixed asset funds due to the fact that a significant portion of its assets may be invested in volatile equities or equity related assets. It can also do potential investments in for example securities with a moderate credit rating and as such with higher risk. Potential underlying debt instruments may or can present a greater risk in terms of downgrading or may exhibit a greater default and interest rate risk than debt instruments issued by investment grade issuers. Potential higher return should be viewed as compensation for the Page 14
greater degree of risk. The Lagom Sub-Fund may utilise financial derivative instruments for investment purposes in pursuing its investment objective and its strategy (in addition to use for efficient portfolio management or hedging purposes). Gaining exposure via derivatives for other reasons than for hedging purposes may result in increased volatility in the net asset value of the Lagom Sub-Fund, and can also lead to increased counterparty risk. The markets in options, futures, forwards and swaps are volatile; both the opportunity to achieve gains as well as the risk of suffering losses are greater than with investments excluding financial derivative instruments. 5. General information Reference currency: SEK which is the currency in which the NAV of shares in the Lagom Sub-Fund is calculated. Investments will be made in the currencies that are most suitable for the performance of the Lagom Sub-Fund and might deviate from the reference currency. Dealing Day: applications for subscriptions, redemptions and conversions for Shares can be made on any Valuation Day for the relevant Sub-Fund prior to 11:00 CET (the Subscription, Redemption and Conversion Cut-Off time ) provided the applications are received in good order. Applications for subscriptions, redemptions and conversion received after such time will be dealt with on the following Valuation Day. The value of the assets of the Sub-Fund is determined as at the end of the relevant Valuation Day. Calculation day: the actual calculation of the value of the assets of the Sub-Fund will take place on the following Business Day. Dividend policy: This Lagom Sub-Fund pursues a policy of accumulation. Share classes: Class ISIN A (SEK) LU0990017807 Class A shares are restricted to institutional investors and Pension Plans investors. Shares are issued in the form of registered shares without certificates representing the Shares. 6. Fees and expenses Class A (SEK) Lagom Sub-Fund Subscription Fee 0,00% Portfolio Management Commission Management Company Fee Taxe d abonnement up to 2,20% p.a. up to 0,05% p.a. 0,01% p.a. as described in Section II of this Prospectus Section 9. Taxation Page 15
In addition to the above the Lagom Sub-Fund will incur fees to be paid to the Central Administrative Agent and the Custodian Bank, which are further specified in Section II of this Prospectus. In addition the following fees will be applicable: The Portfolio Manager is entitled to a portfolio management commission detailed above, which is calculated (all taxes excluded) monthly on the average total net assets of the Lagom Sub-Fund (excluding those net assets held in the form of investments in other investment funds managed or controlled by entities of the same Portfolio Manager). This fee is payable monthly in arrears. 7. Performance The performance of this Lagom Sub-Fund is presented in a histogram included in the KIID. 8. Portfolio management The Management Company appointed the Portfolio Manager having its registered office at Sveavägen 24-26, 111 57 Stockholm, Sweden as portfolio manager of this Lagom Sub-Fund. The Portfolio Manager is an asset management company, authorised and regulated by the financial supervisory authority in Sweden. The firm was founded as a private limited liability company in 2008 and is active in the area of portfolio management services in Sweden. 9. Limits concerning global exposure The global risk exposure calculation method in accordance with applicable laws and regulations can be prepared based either on the commitment approach or the value at risk approach (relative or absolute). The method used for the determination of the global exposure of the Sub-Fund is the commitment approach. The commitment approach is designed to ensure that when calculating the global exposure of financial derivative instruments held within a Sub-Fund, a calculation is made as to the market value of the assets underlying the financial derivative instruments, or the notional value of an equivalent underlying asset. Generally the commitment approach is only to be used where the types of financial derivative instruments used can be translated in a relatively straightforward manner into the underlying property. Page 16
Allra Modig 3 This section describes the characteristics of the Sub-Fund Allra Modig (the Modig Sub- Fund ) and all of the information contained therein should be read in conjunction with the general provisions as set out in Section II of the Prospectus. 1. Investment Objective The investment objective of the Modig Sub-Fund is to generate long term capital appreciation to its shareholders by investing mainly, directly or indirectly, in equity and/or equity related instruments. 2. Investment Strategy and Policy The Modig Sub-Fund is a fund that invests directly or indirectly in equity or equity related financial instruments. The Modig Sub-Fund can also make investments in other financial instruments such as, including but not limited to, direct or indirect investments in fixed income and fixed income related instruments in order to increase the potential proceeds or reduce the risks. The assets of the Modig Sub-Fund may be invested in transferable securities, money market instruments, shares or units of collective investment schemes, derivative instruments and deposits with credit institutions. The management strategy and the Modig Sub-Fund's composition may vary greatly over time depending on market conditions. The ambition is however to over time have a global and diversified equity or equity related portfolio. The active asset allocation within the Sub-Fund aims to invest in global markets with emphasis on growth and emerging world related equities and to some extent global and emerging fixed income investments, with view to achieve positive absolute returns with, over the long run, high risk for investors. At least 90% of the Sub-Fund related investments should, under normal circumstances and over time, be directly or indirectly invested in equity or equity related investments. The intention is to invest a large part of the investments into liquid transferable securities listed on or traded on regulated markets in accordance with the Market in Financial Instruments Directive (MiFID), or on a regulated market outside the EEA. The investment policy of the Modig Sub-Fund is global and diversified and therefore not limited to any particular industry. Any investments into collective investment schemes could be in so-called ETFs, i.e. exchange-traded funds. ETFs refer to funds and fund companies pursuant to point 13 (1) (A) (h) of Section II ( Investment Instruments ) of this Prospectus. The direct investment in units or shares of collective investment schemes shall never exceed 10% of the Sub-Funds net assets. The Modig Sub-Fund may not invest more than 20% of its net assets in asset-backed securities or mortgage-backed securities. 3 Modig means Brave Page 17
The assets of the Modig Sub-Fund may be invested in derivative instruments, subject to compliance with point 13 (1) (A) (f) of Section II ( Investment Instruments ) of this Prospectus, including OTC derivative instruments. The assets of the Modig Sub-Fund may be invested in money market instruments referred to in point 13 (1) (A) of Section II ( Investment Instruments) of this Prospectus. In addition, the Modig Sub-Fund's assets may be invested in transferable securities and money market instruments referred to in point 13 (1) (B) of Section II ( Investment Instruments ) of this Prospectus. The Modig Sub-Fund may also lend securities in its portfolio to third parties ("securities lending") for the purposes of efficient portfolio management within the meaning of, and under the conditions set out in, applicable laws, regulations and circulars issued by the CSSF from time to time as well as Section II of this Prospectus. 3. Profile of the typical investor The Modig Sub-Fund is suitable for investors who are able to tolerate high risk and wish to invest in a portfolio of mainly equities and equity related instruments and in addition to some extent in fixed income and fixed income related investments. Investors are likely to use this Modig Sub-Fund to complement an existing core bond portfolio and core equity for enhanced diversification and should have an investment horizon of at least 5 years. 4. Risk Profile of the Modig Sub-Fund In general, the Modig Sub-Fund can be affected by the following risk factors as described further in Section II of the Prospectus: Counterparty risk Credit risk Currency risk Currency Hedging risk Derivative risk Emerging Markets Country Risk Interest rate risk Liquidity risk Securities lending risk Volatility risk Tax related risk In addition to the general risk factors as mentioned above, potential investors should be particularly aware of certain fund specific risks: The Modig Sub-Fund s risk profile may be higher relative to other equity or mixed asset funds due to the fact that a significant portion of its assets may be invested in risky equities or equity related assets that can increase the volatility of the fund. It can also do potential investments in for example securities with a lower credit rating and as such with higher risk. Potential underlying debt instruments may or can present a greater risk in terms of downgrading or may exhibit a greater default and interest rate risk than debt instruments issued by investment grade issuers. Potential higher return should be viewed Page 18
as compensation for the greater degree of risk. The Modig Sub-Fund may utilise financial derivative instruments for investment purposes in pursuing its investment objective and its strategy (in addition to use for efficient portfolio management or hedging purposes). Gaining exposure via derivatives for other reasons than for hedging purposes may result in increased volatility in the net asset value of the Modig Sub-Fund, and can also lead to increased counterparty risk. The markets in options, futures, forwards and swaps are volatile; both the opportunity to achieve gains as well as the risk of suffering losses are greater than with investments excluding financial derivative instruments. 5. General information Reference currency: SEK which is the currency in which the NAV of shares in the Modig Sub-Fund is calculated. Investments will be made in the currencies that are most suitable for the performance of the Modig Sub-Fund and might deviate from the reference currency. Dealing Day: Applications for subscriptions, redemptions and conversions for Shares can be made on any Valuation Day for the relevant Sub-Fund prior to 11:00 CET. (the Subscription, Redemption and Conversion Cut-Off time ) provided the applications are received in good order. Applications for subscriptions, redemptions and conversion received after such time will be dealt with on the following Valuation Day. The value of the assets of the Sub-Fund is determined as at the end of the relevant Valuation Day. Calculation day: the actual calculation of the value of the assets of the Sub-Fund will take place on the following Business Day. Dividend policy: This Modig Sub-Fund pursues a policy of accumulation. Share classes: Class ISIN A (SEK) LU0990018441 Class A shares are restricted to institutional investors and Pension Plan investors. Shares are issued in the form of registered shares without certificates representing the Shares. 6. Fees and expenses Class A (SEK) Modig Sub-Fund Subscription Fee 0,00% Portfolio Management Commission Management Company Fee Taxe d abonnement up to 2,20% p.a. up to 0,05% p.a. 0,01% p.a. as described in Section II of this Prospectus Section 9. Taxation Page 19
In addition to the above the Modig Sub-Fund will incur fees to be paid to the Central Administrative Agent and the Custodian Bank, which are further specified in Section II of this Prospectus. In addition the following fees will be applicable: The Portfolio Manager is entitled to a portfolio management commission detailed above, which is calculated (all taxes excluded) monthly on the average total net assets of the Modig Sub-Fund (excluding those net assets held in the form of investments in other investment funds managed or controlled by entities of the same Portfolio Manager). This fee is payable monthly in arrears. 7. Performance The performance of this Modig Sub-Fund is presented in a histogram included in the KIID. 8. Portfolio management The Management Company appointed the Portfolio Manager having its registered office at Sveavägen 24-26, 111 57 Stockholm, Sweden as portfolio manager of this Modig Sub-Fund. The Portfolio Manager is an asset management company, authorised and regulated by the financial supervisory authority in Sweden. The firm was founded as a private limited liability company in 2008 and is active in the area of portfolio management services in Sweden. 9. Limits concerning global exposure The global risk exposure calculation method in accordance with applicable laws and regulations can be prepared based either on the commitment approach or the value at risk approach (relative or absolute). The method used for the determination of the global exposure of the Sub-Fund is the commitment approach. The commitment approach is designed to ensure that when calculating the global exposure of financial derivative instruments held within a Sub-Fund, a calculation is made as to the market value of the assets underlying the financial derivative instruments, or the notional value of an equivalent underlying asset. Generally the commitment approach is only to be used where the types of financial derivative instruments used can be translated in a relatively straightforward manner into the underlying property. Page 20
Allra Strategi Försiktig 4 This section describes the characteristics of the Sub-Fund Allra Strategi Försiktig (the Strategi Försiktig Sub-Fund ) and all of the information contained therein should be read in conjunction with the general provisions as set out in Section II of the Prospectus. 1. Investment Objective The investment objective of the Strategi Försiktig Sub-Fund is to generate long term capital appreciation for its shareholders by investing in fixed income and fixed income related investments and in equity and equity related investments. 2. Investment Strategy and Policy The Strategi Försiktig Sub-Fund is a fund that invests directly or indirectly in fixed income, fixed income related, equity and equity related financial instruments. The Strategi Försiktig Sub-Fund can also make investments in other financial instruments in order to increase the potential proceeds or reduce the risks. The assets of the Strategi Försiktig Sub-Fund may be invested in transferable securities, money market instruments, shares or units of collective investment schemes, derivative instruments and deposits with credit institutions. The management strategy of the Strategi Försiktig Sub-Fund's composition may vary greatly over time depending on market conditions with emphasis on lower risk equities with predictable cash flows and global fixed income investments, with view to achieve positive absolute returns with, over the long run, moderate risk for investors. A substantial part of the Strategi Försiktig Sub-Fund's investments should over the long run be invested in fixed income related investments principally issued by issuers in developed countries but also for a small part of the assets of the Sub-Fund by government issuers located in emerging markets countries. As such the investment directly in equities, or indirectly via for example collective investment schemes, should not exceed 70% of the Strategi Försiktig Sub-Fund's assets. The direct investment in units or shares of collective investment schemes shall never exceed 10% of the Sub-Fund s assets. The intention is to invest a large part of the investments into liquid transferable securities listed on or traded on regulated markets in accordance with the Market in Financial Instruments Directive (MiFID), or on a regulated market outside the EEA. The investment policy of the Strategi Försiktig Sub-Fund is global and diversified and therefore not limited to any particular industry. Any investments into collective investment schemes could be in so-called ETFs, i.e. exchange-traded funds. ETFs refer to funds and fund companies pursuant to point 13 (1) (A) (h) of Section II ( Investment Instruments ) of this Prospectus. 4 Strategi Försiktig means Strategy Conservative Page 21
The assets of the Strategi Försiktig Sub-Fund may be invested in derivative instruments, subject to compliance with point 13 (1) (A) (f) of Section II ( Investment Instruments ) of this Prospectus, including OTC derivative instruments. The assets of the Strategi Försiktig Sub-Fund may be invested in money market instruments referred to in point 13 (1) (A) of Section II ( Investment Instruments) of this Prospectus. In addition, the Strategi Försiktig Sub-Fund's assets may be invested in transferable securities and money market instruments referred to in point 13 (1) (B) of Section II ( Investment Instruments ) of this Prospectus. The Strategi Försiktig Sub-Fund may not invest more than 20% of its net assets in assetbacked securities or mortgage-backed securities. The Strategi Försiktig Sub-Fund may also lend securities in its portfolio to third parties ("securities lending") for the purposes of efficient portfolio management within the meaning of, and under the conditions set out in, applicable laws, regulations and circulars issued by the CSSF from time to time as well as Section II of this Prospectus. 3. Profile of the typical investor The Strategi Försiktig Sub-Fund is suitable for investors who are able to tolerate moderate risk and wish to invest in a broadly diversified portfolio of fixed income and equity related investments. Investors are likely to use this Strategi Försiktig Sub-Fund to complement an existing core bond portfolio and core equity portfolio for enhanced diversification, and any such investor should have an investment horizon of at least 5 years. 4. Risk Profile of the Strategi Försiktig Sub-Fund In general, the Strategi Försiktig Sub-Fund can be affected by the following risk factors as described further in Section II of the Prospectus: Counterparty risk Credit risk Currency risk Currency Hedging risk Derivative risk Emerging Markets Risk Interest rate risk Liquidity risk Securities lending risk Volatility risk Tax related risk In addition to the general risk factors as mentioned above, potential investors should be particularly aware of certain fund specific risks: The Strategi Försiktig Sub-Fund s risk profile may be higher relative to other mixed asset funds due to its potential investments in securities with a moderate rating and its investments in equity related instruments. The underlying debt instruments may or can present a greater risk in terms of downgrading or may exhibit a greater default Page 22
(credit) and interest rate risk than debt instruments issued by investment grade issuers. Potential higher return should be viewed as compensation for the greater degree of risk. A significant portion of assets may be invested in equities or equity related assets that can significantly increase the volatility of the fund. The Strategi Försiktig Sub-Fund may utilise financial derivative instruments for investment purposes in pursuing its investment objective and its strategy (in addition to use for efficient portfolio management or hedging purposes). Gaining exposure via derivatives for other reasons than for hedging purposes may result in increased volatility in the net asset value of the Strategi Försiktig Sub-Fund, and can also lead to increased counterparty risk. The markets in options, futures, forwards and swaps are volatile; both the opportunity to achieve gains as well as the risk of suffering losses are greater than with investments in investments excluding financial derivative instruments. 5. General Information Reference currency: SEK which is the currency in which the NAV of shares in the Strategi Försiktig Sub-Fund is calculated. Investments will be made in the currencies that are most suitable for the performance of the Strategi Försiktig Sub-Fund and might deviate from the reference currency. Dealing Day: applications for subscriptions, redemptions and conversions for Shares can be made on any Valuation Day for the relevant Sub-Fund prior to 11:00 CET. (the Subscription, Redemption and Conversion Cut-Off time ) provided the applications are received in good order. Applications for subscriptions, redemptions and conversion received after such time will be dealt with on the following Valuation Day. The value of the assets of the Sub-Fund is determined as at the end of the relevant Valuation Day. Calculation Day: the actual calculation of the value of the assets of the Sub-Fund will take place on the following Business Day. Dividend policy: This Strategi Försiktig Sub-Fund pursues a policy of accumulation. Share classes: Class A (SEK) B (SEK) ISIN LU1209008116 LU1209011417 Class A shares are restricted to Pension Plan investors. Class B shares are restricted to Institutional investors. Shares are issued in the form of registered shares without certificates representing the Shares. Page 23
6. Fees and expenses Class A (SEK) B (SEK) Strategi Försiktig Sub-Fund 0,00% 0,00% Subscription Fee Portfolio Management up to 1,45% p.a. up to 2,20% p.a. Commission Management Company Fee up to 0,05% p.a. up to 0,05% p.a. Taxe d abonnement 0,01% p.a. as described in Section II of this Prospectus Section 9. Taxation 0,01% p.a. as described in Section II of this Prospectus Section 9 Taxation In addition to the above the Strategi Försiktig Sub-Fund will incur fees to be paid to the Central Administrative Agent and the Custodian Bank, which are further specified in Section II of this Prospectus. In addition the following fees will be applicable: The Portfolio Manager is entitled to a portfolio management commission detailed above, which is calculated (all taxes excluded) monthly on the average total net assets of the Strategi Försiktig Sub-Fund (excluding those net assets held in the form of investments in other investment funds managed or controlled by entities of the same Portfolio Manager). This fee is payable monthly in arrears. 7. Performance The performance of this Strategi Försiktig Sub-Fund is presented in a histogram included in the KIID once launched. 8. Portfolio management The Management Company appointed the Portfolio Manager having its registered office at Sveavägen 24-26, 111 57 Stockholm, Sweden as portfolio manager of this Strategi Försiktig Sub-Fund. The Portfolio Manager is an asset management company, authorised and regulated by the financial supervisory authority in Sweden. The firm was founded as a private limited liability company in 2008 and is active in the area of portfolio management services in Sweden. 9. Limits Concerning Global Exposure The global risk exposure calculation method in accordance with applicable laws and regulations can be prepared based either on the commitment approach or the value at risk approach (relative or absolute). The method used for the determination of the global exposure of the Sub-Fund is the commitment approach. The commitment approach is designed to ensure that when calculating the global exposure of financial derivative instruments held within a Sub-Fund, a calculation is made as to the market value of the assets underlying the financial derivative instruments, or the notional value of an equivalent underlying asset. Generally the commitment approach is only to be used where the types of financial derivative instruments used can be translated in a relatively straightforward manner into the underlying property. Page 24