Re: La Française Sub-Debt (Y units FR0013321916*, IC CHF H units FR0013017985*, R units FR0011766401*, C units FR0010674978, RC USD H units FR0013251196*, RD USD H units FR0013397346*, TC EUR units FR0013289063*, A units FR0013321932*, I GBP H units FR0013334018*, L units FR0013480266*, IC USD H units FR0013324159*, TC USD H units FR0013289055*, TS units FR0013397759*, S units FR0013289071*, D units FR0010969311*)).
*The unit is not registered in Austria
Dear Sir/Madam,
We would like to thank you, as a unitholder in the La Française Sub-Debt fund (hereinafter, the “Fund”), for the trust you have placed in us.
1. The operation
In order to avoid any divergence of interests between the Fund manager and investors, and in the context of compliance with the new ESMA directive concerning the method of calculating performance fees, the management company has decided to set up a system of variable management fees for units eligible for outperformance fees, calculated with reference to the outperformance of a benchmark index, based on the new ESMA methodology.
The Fund's management objective and benchmark indicator are therefore modified and will be aligned with the trigger threshold for variable management fees when applicable.
The Fund's new composite benchmark will be as follows: 50% Markit iBoxx EUR Contingent Convertible (IBXXC2CO Index) + 25% Markit iBoxx EUR Non-Financials Subordinated (I4BN Index) + 25% Markit Iboxx EUR Insurance Subordinated (IYHH Index).
These changes to the Fund's legal documentation have no impact on the Fund's investment strategy, which remains unchanged.
This modification does not require authorisation from the French Financial Markets Authority and will come into force on 23 September 2021.
If you accept the terms, these modifications do not involve any action on your part. If, however, the changes do not reflect your interests, you can have your units redeemed1 free of charge from 23 August 2021 until 23 September 2021.
1 The amount of any capital gains made as a result of this redemption will be subject to the taxation applicable on the date of the transaction.
Download the Letter to unitholders