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FSA approved Avaron Emerging Europe Fund New Rules and Prospectus
Hereby we would like to inform you that Estonian FSA has approved Avaron Emerging Europe Fund new fund rules and prospectus. The new rules and prospectus will become valid from September 12th, 2016.
The following changes to the fund rules are significant from an investor perspective:
Adding Greece to our investment universe. We have added Greece, which became part of the MSCI Emerging Europe indices, to our list of countries the fund can invest in. We aim to take on Greek exposure during September. The fund rules were changed so that in the future, should any country in Europe be added to the index, it will automatically be included into our investment universe.
Better definition of instruments that fall under investment fund limit, investment funds capped at 10%. The fund may not invest into any other Avaron managed funds.
Widening of the list of instruments that can be used as underlying securities for derivative transactions to include all the indices of our investment universe. Stating that the fund may not take short positions, except in FX.
Removing the redemption penalty of 1.5% in case of a single investor redemption amounting to above 10% of the fund assets.
To protect the assets of existing fund investors we have added a possibility (not an obligation) for Avaron to postpone the trade date for one day for redeeming investors in case a single investor redeems over 5% of the fund assets within one day and for two days in case over 10% is redeemed, i.e. first 5% receives trade date of T, second 5% T+1 and anything over 10% T+3.
To ensure fund liquidity we have added a possibility (again not an obligation) to postpone the value date up to 10 days (T+10) in case all investor redemptions total over 5% per day.
We have amended the list of costs that can be paid on behalf of the fund, adding costs for translation and printing of fund rules and prospectus, state fees and distribution costs. However, the aim is to continue to keep the TER (excluding management fees) at around 30bps.
Most of the other changes made in the rules and prospectus were aimed to improve the readability of the text
Learn more about the changes made in the fund rules and prospectus from a letter to investors.
See Avaron Emerging Europe Fund rules and prospectus at our website under Documents.
For any questions or comments, please do not hesitate to contact us:
Phone: +372 5112242