DORVAL GLOBAL CONVICTIONS PROSPECTUS UCITS governed by European Directive 2009/65/EC Page 1
DORVAL GLOBAL CONVICTIONS I. GENERAL CHARACTERISTICS Legal form Name: or the Fund Legal form: Dorval Global Convictions, hereinafter referred to as the Mutual Investment Fund Mutual Investment Fund (FCP) subject to French law Inception date and expected term: UCITS approved by the AMF on 25/11/2008 and launched on 15/12/2008 Expected term: 99 years Summary of the management offer: This Fund has two unit classes. Commerc ial name ISIN code Distribution of income Base currency Minimum initial subscription Minimum subsequent subscription Target subscribers R units FR0010687053 Accumulation Euro R units: 1 thousandth of a unit R units: 1 thousandth of a unit All subscribers, and in particular private individuals. I units FR0010690974 Accumulation Euro I units: 50,000 N units FR0013307626 Accumulation Euro N units: 1 thousandth of a unit I units: 1 thousandth of a unit N units: 1 thousandth of a unit All subscribers, and in particular institutional investors. Subscription to this unit is reserved for investors subscribing via distributors or intermediaries that are subject to national legislation prohibiting any retrocessions to distributors, or that provide an independent advisory service as defined by the European MiFID II regulation, or individual portfolio management services under a mandate. Address from which the Fund s regulations, the latest annual and interim reports and asset composition can be obtained: The latest annual and interim reports and the Fund s regulations, as well as the asset composition details, will be sent to unitholders within eight business days of receipt of a written request addressed to: Dorval Asset Management IAMA clients: Ms Gaëlle Guilloux 1, rue de Gramont Tel: +33 (0)1 44 69 90 45 75002 Paris E-mail: gaelle.guilloux@dorval-am.com Fax: +33 (0)1 42 94 18 37 Informations@dorval-am.com Page 2
Additional information can be obtained from Dorval Asset Management at the above address, or from your usual adviser. Information for professional investors: Dorval Asset Management may send the breakdown of the UCI s portfolio to investors classified as professional investors by the ACPR, the AMF or equivalent European authorities, for the sole purpose of calculating regulatory requirements under Directive 2009/138/EC (Solvency II). II - PARTIES INVOLVED: Management Company: Dorval Asset Management A Portfolio Management Company authorised by the AMF under number 93008 of 14/06/1993 1 Rue de Gramont, 75002 Paris, France Depositary, custodian and institution responsible for the centralisation of subscription and redemption orders and for keeping the registers of units: CACEIS BANK The duties of the depositary include, as set out in the applicable Regulations, custody of the assets, checking that the Management Company s decisions are lawful, and monitoring the UCITS cash flows. The depositary is also responsible, on behalf of the Management Company, for the Fund s liability accounting, which includes centralising subscription and redemption orders for Fund units. The depositary is independent of the Management Company. The description of the delegated custodial duties, the list of custodians and subcustodians of CACEIS Bank and information relating to conflicts of interest that may result from these delegations are available on the CACEIS website: www.caceis.com. Updated information is available to investors upon request. Representatives: CACEIS FUND ADMINISTRATION Société anonyme [limited liability company] 1-3 Place Valhubert, 75206 Paris Cedex 13, France The main duties of the party responsible for accounting is to provide, in France and abroad, services to support the management of financial assets, in particular the valuation and administrative and accounting management of the financial portfolios. The Management Company has not identified any conflicts of interest that may arise from such arrangements. Statutory Auditor: Institutional clients: Distributor: KPMG, represented by Mr GAULTRY, Tour EQHO, 2 Avenue Gambetta, CS 60055, 92066 Mr Denis Laval, Tel. +33 (0)1 44 69 90 43 E-mail: denis.laval@dorval-am.com Dorval Asset Management A Portfolio Management Company authorised by the AMF under number 93008 of 14/06/1993 1 Rue de Gramont, 75002 Paris, France. Page 3
General characteristics: III. OPERATING AND MANAGEMENT PROCEDURES Rights attached to the units: The rights of the Fund s co-owners are expressed in units, with each unit representing an equal fraction of the Fund s assets. Each unitholder has a coownership right to the Fund s assets, proportional to the number of units held. Distributable income is equal to the net income for the financial year plus or minus the balance of any accrued income or deferred expenses for the last financial year. The Management Company shall decide on the allocation of income. It opts for accumulation. Unitholders may be informed about changes affecting the Fund by any means that conform to AMF guidelines. Management of the Fund, which has no corporate personality and for which the rules concerning undivided ownership and companies have been waived, is carried out by the Management Company, acting on behalf of the unitholders and in their exclusive interest. Entry in a register: Voting rights: Type of units: Decimalisation: Year-end date: Tax system: Liability accounting is provided by the depository, CACEIS BANK France. The units are administered by Euroclear France. There are no voting rights attached to the units, decisions are taken by the Management Company. The Management Company s voting policy may be viewed at its registered office or at www.dorval-am.com. Bearer. Subscription or redemption in thousandths of units. The last working day in December The Fund may be used for unit-linked life insurance contracts. The Fund is not subject to corporation tax, but dividends and capital gains or losses are taxable once in the hands of the unitholders. Depending on your tax system, any capital gains and income related to the holding of UCITS units may be subject to tax. We advise you to obtain further information on this matter from the marketing agent of the UCITS. Information on ESG criteria: The ESG policy is available in the UCITS annual report and on the Management Company website: http://www.dorval-am.com Specific provisions: ISIN code: Management objective: R units: FR0010687053 I units: FR0010690974 N units: FR0013307626 The management objective is to participate in the rise of the international interest rate and equity markets and to offer a return net of fees that is better than the benchmark comprised of 50% of the EONIA Capitalization Index 7 D (Bloomberg code: OISEONIA) and 50% of the MSCI index of international equities with net dividends reinvested, MSCI World NR (EUR), since 1 January 2013, over five years. This benchmark does not place restrictive limits upon the investment universe but allows the investor to gauge the performance and risk profile they can expect when investing in this fund. Benchmark: 50% of the EONIA Capitalization Index 7 D (Bloomberg code: OISEONIA) and 50% MSCI index of international equities with net dividends reinvested, MSCI World NR (EUR), since 1 January 2013. This benchmark does not place restrictive limits Page 4
upon the investment universe. It aims to enable investors to assess the performance and risk profile of the Fund. EONIA (Euro Overnight Index Average) Capitalization Index 7 D (Bloomberg code: OISEONIA), rate calculated daily by the ECB resulting from the weighted average of overnight transactions made between the most active banks in the eurozone. It represents the eurozone risk-free rate. The EONIA index is calculated and published by the European Money Markets Institute on its website www.emmi-benchmarks.eu MSCI WORLD NR (EUR) is an index representing the main worldwide capitalisations in developed countries. (Morgan Stanley index of international equities). It is calculated in euros with net dividends reinvested by MSCI (Bloomberg code: MSDEWIN). The index is calculated by MSCI and is available on their website at www.msci.com Investors attention is drawn to the fact that the composition of the portfolio may differ significantly from that of its benchmark index. Investment strategy: The fund managers Dorval Global Convictions implement discretionary, active management with a view to achieving the management objective through an allocation based on asset class, geographic area and theme. The composition of the portfolio may differ significantly from that of its benchmark index. The investment process is constructed in two stages, namely: 1) a cross-analysis of the global macroeconomic environment, growth prospects for corporate results, the valuation of various asset classes, and market trends allow the asset allocation to be determined in terms of asset class, geographic choice and the identification of the main investment themes. The investment strategy favours shares, then according to our analysis, envisages investment in bonds, or even money markets. 2) Following the decisions taken regarding the allocation of assets, the portfolio is constructed by means of: > Thematic and/or geographical baskets of equities on the basis of quantitative filtering of the investment universe on liquidity criteria, financial analysis and valuation. The weighting per security shall not exceed 1% of the assets of the Fund and the securities shall be equally weighted within the basket. The number of securities per basket, and their equal weighting that aims to reduce the risk specific to each security as much as possible, will depend on the theme in question and the weight of the basket within the Fund. It should be, on average, 20 securities. The Fund may be exposed to emerging countries and small- and mid-caps. > The bond selection based on our macroeconomic analysis and our market expectations in terms of movements in interest rates, exchange rates and credit spreads. > Within the limit of 10% of the portfolio, the selection of UCIs takes place in a large investment universe of several thousands of funds. In the first quantitative stage, we compute risk-adjusted performance ratios over a period in accordance with the investment horizon advised for the funds. By "risk", we mean the maximum volatility and decline both in absolute and relative terms compared with the Fund benchmark index. In terms of this first analysis, a qualitative in-depth study is conducted on the funds offering, on a recurring basis, the best risk-adjusted performance ratios over homogenous periods. The managers of the funds studied are visited and audited on their management process, resources implemented and results obtained. The managers are selected at the end of this qualitative stage. Page 5
Finally, the Fund may invest in forward financial instruments traded on French and foreign regulated markets or over-the-counter markets and in instruments with embedded derivatives to hedge and/or expose the portfolio to equity, interest rate, credit and currency risks, without seeking overexposure. The net investment rate of the portfolio shall not exceed 100% at any time. In this context, the manager: - may take positions to hedge the portfolio and/or expose it to currencies/interest rates/indices/shares, securities and similar assets, without seeking overexposure. The balance of the portfolio may be invested in money-market instruments. In the case of significant risk on capital markets, the monetary weighting may represent up to 100% of the assets. Composition of assets: Equities: Overall, the asset classes included in the composition of the UCITS assets are the following: Between 0 and 100% of the Fund s assets may be exposed to equity markets. The Fund's objective is to offer a freedom of choice of the different geographical areas, with an opportunistic approach to the choices made. Secondly, the Fund will also seek diversification in terms of management style and market capitalisation without limit in terms of exposure. Against this background, the manager may invest in: - management styles based on "growth" and "value" (discounted securities); - small- and mid-caps without any restriction on the limit of exposure to equity markets; - emerging equity markets. Characteristics of the shares or equity securities held: - Securities traded on regulated markets - Equities issued by international companies in all geographical regions - Equities from all economic sectors - Small-, medium- or large-cap equities - Equities purchased by the Fund that are not specifically part of the benchmark index. Debt securities, money market instruments and bonds: Between 0 and 100% of the Fund s assets may be exposed to interest rate markets. Depending on market opportunities, the Fund may invest in bonds, including convertible, State or private bonds, rated "investment grade" or "speculative" or of a rating deemed equivalent by the Management Company, of any maturity, and of the eurozone and/or international markets including emerging countries. This unit may represent up to 100% of the Fund s assets. Characteristics of interest rate products held: - Negotiable debt securities or bonds - Securities issued by states or public institutions without rating restrictions - Securities issued by companies, including high-yield securities The overall sensitivity of the portfolio of products and interest rate instruments may vary significantly. The sensitivity is defined as the variation in capital of the portfolio (in %) for a variation of 100 basis points in interest rates. The Fund is not subject to the constraints of sensitivity. The management company relies on its teams and its own methodology to appraise credit risk. Derivatives: The manager may trade all forward financial instruments or options and make over-the-counter transactions for hedging and/or exposure of the portfolio s interest rate, credit, equity and currency risks. Page 6
The Fund may use the following products: - futures on interest rates/equity/currency (hedging and/or exposure); - interest rate/equity/currency options (hedging and/or exposure); - forward currency contracts (hedging); Derivatives are used subject to a maximum commitment of 100% of the portfolio. The Fund will not use total return swaps. Securities with embedded derivatives: To achieve its management objective, the Fund may also invest in financial instruments with embedded derivatives. This is to hedge and/or increase the portfolio's exposure to interest rate, credit and/or equity risk. More specifically, the credit derivatives will be structured EMTNs. All these transactions are made to a maximum limit of 100% commitment in relation to the Fund's net assets for hedging or increasing the portfolio's exposure. UCI shares or units: The Fund may invest in eurozone and/or international share or interest rate UCIs. This unit may represent up to 10% of the Fund s assets. Investment in UCIs managed by Dorval Asset Management is authorised. Deposits: None Cash borrowings: Limited to 10% of net assets Temporary purchases and sales of securities: None Leverage effect: The Fund does not use leverage Contracts constituting collateral: None Risk profile: The portfolio is exposed to the following risk factors: Risk of loss of capital: The Fund does not offer any protection or guarantees, and capital initially invested may not be returned in full. Discretionary management risk: The discretionary management style is based on anticipating trends on the various markets. There is a risk that the UCITS may not be invested in the best-performing markets or securities at all times. This risk may expose unitholders to a risk of performance below that of the benchmark or to a capital loss. Equity market risk: The UCITS may invest up to 100% of its net assets in shares; changes in its net asset value are linked to changes in the investment environment. Furthermore, the Fund may be partially exposed to small- and mid-caps which, due to their specific characteristics, may present risks for investors and may present a liquidity risk due to the potentially narrow nature of their market. Movements upwards and downwards are more abrupt and more pronounced. If equity markets fall, this may cause the net asset value to fall. Risk of investing in emerging markets: The Fund may invest up to 100% of its net assets in the equities of emerging countries and up to 100% of its net assets in the debt of emerging countries. Investors are reminded that operating and supervisory conditions in such markets may differ from the standards prevailing on major international exchanges. The cumulative exposure to emerging markets will be a maximum of 100% of assets. If these markets fall, this may cause the net asset value to fall. Interest rate risk: Page 7
Eligible subscribers and standard investor profile: The Fund may experience an interest rate risk linked to investment in interest rate products. Thus, a rise in interest rates will result in a fall in the net asset value of the Fund. Exchange rate risk: This is the risk of a fall in the securities held compared to the portfolio s reference currency: Euro Unitholders residing in the eurozone may have to bear this exchange rate risk of up to 100% of Fund assets. If the currency falls, this may cause the net asset value to fall. Credit risk: The Fund may experience a credit risk linked to investment in corporate bonds. Thus, a default or downgrading of the situation of the issuer of a security, in particular economic or financial, could cause the value of the security in question to fall together with a reduction of the net asset value of the Fund. Risk linked to investment in speculative bonds: The Fund may experience a risk linked to the use of speculative securities, known as high-yield, the rating of which is low or non-existent, which may lead to a risk of a greater fall in the net asset value. Risk linked to investments in convertible bonds: The Fund may experience an indirect equity or interest rate/credit risk linked to investment in convertible bonds. The net asset value of the Fund is also likely to experience fluctuations according to changes in the value of the conversion option of convertible bonds (i.e. the possibility to convert the bond into a share). If these markets fall, this may cause the net asset value to fall. Counterparty risk: This is the risk of a counterparty defaulting, resulting in non-payment. R units: All subscribers. I units: Specifically intended for institutional investors. N units: Subscription to this unit is reserved for investors subscribing via distributors or intermediaries that are subject to national legislation prohibiting any retrocessions to distributors, or that provide an independent advisory service as defined by the European MiFID II regulation or individual portfolio management services under mandate. Recommended investment period: a minimum of 5 years. This Fund is intended for investors who wish to have a diversified investment offering a flexible strategic international allocation. Subscribers residing in the territory of the United States of America are not permitted to subscribe to this UCITS. The amount that is appropriate to invest in this UCITS will depend on investors personal circumstances. To determine the amount to invest, investors should consider their personal wealth/assets and current needs and the recommended investment period of over five years, as well as their willingness to take risks or whether they would prefer to invest cautiously. Investors are also strongly advised to diversify their investments to ensure that they are not exposed solely to the risks of this UCITS. Allocation of income: Distributable income: R units: accumulation I units: accumulation N units: accumulation None Page 8
Base currency: Type of units: Euro Bearer Decimalisation: Subscription or redemption in thousandths of units. Initial Net Asset Value: R units: 100 I units: 500,000 N units: 100 The value of the B unit was divided by 10 from 14 September 2009. Minimum initial subscription: Minimum subsequent investment: R units: 1 thousandth of a unit I units: 50,000 N units: 1 thousandth of a unit R units: 1 thousandth of a unit I units: 1 thousandth of a unit N units: 1 thousandth of a unit SUBSCRIPTION AND REDEMPTION PROCEDURES Subscription and redemption conditions: Subscription and redemption requests are centralised each net asset value calculation day until 17:30 (Paris time) at CACEIS BANK, 1-3 place Valhubert, 75013 Paris, and are executed on the basis of the net asset value of the following day. It is possible to subscribe and redeem fractions of units (thousandths). Delegated transfer agent of the management company for subscription and redemption orders: CACEIS BANK Date and frequency of net asset value calculation: Daily, except on public holidays, even if the benchmark stock market(s) are open; in this case it is calculated on the next business day. It is calculated based on the last known net asset values for UCIs and, for other securities, based on the last price listed on the valuation day. Calculation and determination of the net asset value: Subscriptions and redemptions are processed at an unknown net asset value; the rules used for determining the net asset value are given in the Asset valuation and accounting rules section. Location and terms of publication and communication of net asset value: This information is available from the Management Company (DORVAL ASSET MANAGEMENT), and on the website http://www.dorval-am.com INFORMATION ON CHARGES, FEES AND TAXES Charges and fees: o Subscription and redemption fees: Subscription and redemption fees increase the subscription price paid by the investor or reduce the redemption price. The fees charged by the UCITS serve to offset the charges it incurs when investing and divesting investors assets. Remaining fees are paid back to the Management Company, marketing agent, etc. Fees charged to the investor, payable at the time of subscription or redemption Base Rate scale R, I and N units Subscription fee not retained by the UCITS Net assets Maximum 4% incl. tax Subscription fee retained by the UCITS Net assets None Redemption fee not retained by the UCITS Net assets None Redemption fee retained by the UCITS Net assets None Page 9
o Charges invoiced to the Fund: These charges cover: - Financial management fees; - Administrative charges external to the Management Company; - Maximum indirect costs (management fees and charges) for UCITS that invest over 20% in French or foreign UCITS, French AIFs or AIFs established in another Member State of the European Union, or investment funds established under foreign law, with reference made to the maximum level of indirect fees and charges; - Performance fees. These reward the Management Company if the UCITS exceeds its objectives. They are therefore invoiced to the UCITS; - Transaction fees invoiced to the UCITS; Fees charged to the UCITS Base Rate scale Financial management charges and administrative charges external to the management company Net assets R units Maximum 2.00% incl. tax Net assets N units Maximum 1.30% incl. tax Net assets I units Maximum 0.70% incl. tax Maximum indirect charges (management charges and Net assets subscription fees) Transfer fees Deduction from each transaction Performance fee Net assets Zero Derivatives: None 20% incl. tax of the Fund s outperformance compared to its benchmark in the event of positive performance of the Fund (see details below) All of these charges are presented inclusive of all taxes. Outperformance fee: The outperformance fee applicable to a particular unit class is based on a comparison of the Fund s valued assets and its reference assets. The Fund s valued assets are the portion of the assets corresponding to a specific unit class, valued in accordance with the valuation rules applicable to the assets and taking into account the actual operating and management fees corresponding to this unit class. The reference assets represent the portion of the Fund s assets corresponding to a specific unit class, adjusted to take into account the subscription/redemption amounts applicable to this unit class at each valuation, and, if need be, valued in accordance with the outperformance of the selected benchmark. The benchmark for calculating the outperformance fee is 50% of the EONIA Capitalization Index 7 D (Bloomberg code: OISEONIA) and 50% of the MSCI index of international equities with net dividends reinvested, MSCI World NR (EUR) since 1 January 2013. This benchmark does not place restrictive limits upon the investment universe. It aims to enable investors to assess the performance and risk profile of the Fund. EONIA (Euro Overnight Index Average) Capitalization Index 7 D (Bloomberg code: OISEONIA), rate calculated daily by the ECB resulting from the weighted average of overnight transactions made between the most active banks in the eurozone. It represents the eurozone risk-free rate. The EONIA index is calculated and published by the European Money Markets Institute on its website www.emmi-benchmarks.eu MSCI WORLD NR (EUR) is an index representing the main worldwide capitalisations in developed countries. (Morgan Stanley index of international equities). It is calculated in euros with net dividends reinvested by MSCI Page 10
(Bloomberg code: MSDEWIN). The index is calculated by MSCI and is available on their website at www.msci.com The variable portion is based on a comparison between the performance of the Fund and the benchmark over the accounting period: - If the performance of the Fund over the accounting period is greater than that of the benchmark and is greater than zero, then the variable portion of the management fee will be 20% including tax of the difference between the Fund s performance and that of the benchmark. - If, during the year, the Fund s performance since the beginning of the accounting period is greater than that of the benchmark calculated over the same period and greater than zero, then this outperformance is subject to a provision for variable management fees at the time of each net asset value calculation. - If over the accounting period, the Fund s performance is below that of the benchmark, the variable portion of the management fee is zero. - If the Fund underperforms in comparison to the composite benchmark between two NAV calculations, any previously accrued provision will be reversed accordingly. The new provisions must not exceed the previous allocations. - This variable portion is only definitively charged at the end of each financial year n, in respect of the financial year n, if during this period, the Fund's performance is greater than that of the composite benchmark and is greater than zero. In all other cases, no variable management fee is levied at the end of the accounting period. - These variable fees are charged directly to the Fund s income statement at each net asset value calculation and levied annually. The following formula sets out how variable management fees (VMF) are calculated in respect of the financial year starting at 0 and ending in n: If NAV(n) <= NAV(0), then TotalVMF(n) = 0 Calculation of the provision between two consecutive NAVs: For all i varying between 1 and n: if NAV(i) > NAV(0) then: TotalVMF(i) = Max(0, 0.20 * [N(i)*NAV(i) - Bench(i)/Bench(0)*N(i)*NAV(0)]) BBBBBBBBh ii = BBBBBBBBh ii 1 50% Where - NAV(n) is the net asset value at the end of the financial year after fixed management fees, with no variable management fee. - NAV(0) is the net asset value at the end of the previous accounting period. This net asset value serves as a benchmark for the current accounting period. - TotalVMF(n) is the amount of the outperformance fee levied over the accounting period. - N(i) is the total number of Fund units on the NAV calculation date (i). - NAV(i) is the unit net asset value on day (i) after fixed management fees, with no variable management fee. - Bench(i) is the value of the index on the same date: - EONIA Capitalization Index 7 D i EONIA Capitalization Index 7 D ii 1 + 50% MSCI World NR (EUR) ii MSCI World NR (EUR) i 1 - N(i)*NAV(i) represents pure assets, after fixed costs. - N(i)*NAV(0) represents the equivalent assets since the beginning of the year. - Bench(i)/Bench(0)*N(i)*NAV(0) represents the benchmark equivalent assets. The daily provision is thus expressed as: Page 11
ProvisionVMF(i) = TotalVMF(i)-TotalVMF(i-1) Where - ProvisionVMF(i) is the amount of variable management fees, provisioned or reversed, at the net asset value calculation on i, Fees in kind: None. Investors are invited to refer to the UCITS annual report for further information. Page 12
IV - COMMERCIAL INFORMATION Procedure for selecting intermediaries: Intermediaries and counterparties are selected by the management team for each transaction, using a competitive process from a list of authorised intermediaries. Investors are invited to refer to the UCITS annual report for further information. This procedure is available on Dorval Asset Management s website, at http://www.dorval-am.com/en_fr/statutory-informations ESG criteria in our investment policy: DORVAL ASSET MANAGEMENT does not manage any ESG funds. As such, our investment policy does not systematically or simultaneously incorporate criteria related to the environment, social issues and governance quality (ESG). However, in addition to traditional financial criteria, we strive to analyse the securities in which we invest, taking into account certain environmental, social and governance criteria. Exclusive distribution is performed by: Dorval Asset Management Redemption of units: The subscription and redemption procedures were outlined in the section entitled Subscription and redemption procedures. The circulation of information about the UCITS is performed by: Dorval Asset Management IAMA clients: Ms Gaëlle Guilloux 1, rue de Gramont Tel. +33 (0)1 44 69 90 45 75002 Paris E-mail:gaelle.guilloux@dorval-am.com Fax: +33 (0)1 42 94 18 37 Informations@dorval-am.com Information is also available as follows: Institutional Clients: Mr Denis Laval Tel. +33 (0)1 44 69 90 43 E-mail: denis.laval@dorval-am.com On the website: http://www.dorval-am.com The AMF website www.amf-france.org contains additional information on the list of regulatory documents and all the provisions relating to investor protection. Prospectus publication date: 09/03/2018 Page 13
V - INVESTMENT RULES The Fund is subject to the legal investment rules applicable to UCITS from Instruction No. 2011-19 investing up to 100% of their assets in units or shares of UCIs. VI OVERALL RISK The overall risk ratio of this UCITS is determined using the commitment method. This method is based on the exact conversion of the position of each financial contract into the market value of an equivalent position on the assets underlying the financial contract. VII ASSET VALUATION AND ACCOUNTING RULES Asset valuation rules: The net asset value per unit is calculated in accordance with the valuation rules given below: - Financial instruments and securities traded on a regulated market are valued at their market price, in accordance with the following principles: - They are assessed at their last official market price: The market price used depends on the market where the security is listed: European listing markets: Last market price on the net asset value calculation day Asian listing markets: Last market price on the net asset value calculation day North and South American listing markets: Last market price on the net asset value calculation day The prices used are those available at 09:00 (CET) on the following day, obtained from appropriate sources: Fininfo or Bloomberg. In the event that a security is not listed, the last known market price is used. However, the following instruments are valued according to the following specific methods: - financial instruments not traded on a regulated market are valued by the Management Company at their likely trading value. In particular, negotiable and other debt securities that are not traded in large volumes are valued using an actuarial method; the rate used is that applied to issues of equivalent securities plus or minus any differential representing the specific characteristics of the security s issuer. However, negotiable debt securities with low sensitivity and a residual maturity of three months or less may be valued using the straight-line method. - contracts (futures and options contracts, or swaps concluded on over-the-counter markets) are valued at their market value or at an estimated value in accordance with the methods established by the Management Company. The valuation method used for off-balance sheet commitments for futures consists of their valuation at the market price, and for options, of their translation into the underlying equivalent. The prices used to value futures and options are in line with those of their underlying securities. They vary according to their listing market: European listing markets: Settlement price on the NAV calculation day, if different from the last price Asian listing markets: Last market price on the NAV calculation day, if different from the last price North and South American listing markets: Last market price on the NAV calculation day, if different from the last price In the event that a future or option is not listed, the last known price is used. Page 14
Securities, which are subject to temporary purchase or sale contracts, are valued in line with the regulations in effect. Securities received under repurchase agreements are recorded at their acquisition date under the heading Receivables representing securities received under repurchase agreements at the value stipulated in the contract offset against the cash account in question. Throughout the period they are held, they are maintained at this value plus any accrued interest. Securities sold under repurchase agreements are taken from the account on the transaction date and the corresponding receivable is recorded under the heading securities sold under repurchase agreements ; this is valued at market price. Debts representing securities sold under repurchase agreements are recorded under the heading "Payables on securities transferred under repurchase agreements" offset against the cash account in question. It is maintained at the value stipulated in the contract, and any interest relating to the debt is added. - Other instruments: UCI units or shares held are valued at the last known net asset value. - Financial instruments, the prices of which were not recorded on the valuation day or for which the prices have been adjusted, are valued at their probable trading value at the Management Company s liability. These valuations and their justifications are disclosed to the statutory auditor when audits are carried out. Accounting methods: Revenue recognition: Interest on bonds and transferable debt securities is calculated using the accrued interest method. Recognition of transaction charges: The method used to record transactions excludes charges and fees. VIII REMUNERATION Details of the Management Company s remuneration policy are available at www.dorval-am.com. IX ADDITIONAL INFORMATION FOR INVESTORS IN LUXEMBOURG The addendum for investors in Luxembourg is dated 23 rd April 2018 and should be read in conjunction with and forms part of the prospectus dated 9 th March 2018 of DORVAL GLOBAL CONVICTIONS, which can change at any time. Paying and information Agent CACEIS Bank, Luxembourg Branch, 5 Allée Scheffer, L-2520 Luxembourg. The prospectus, the Key Investor Information Documents, the management regulations and the annual and semiannual reports, may be obtained, without charge, at the paying and information agent s address, CACEIS Bank, Luxembourg Branch. Payment of dividends (if applicable) Not applicable Page 15