Wir informieren Sie als depotführende Stelle über die Änderung der Vertragsbedingungen zu folgenden Fonds:
| Fondsname | WKN | ISIN |
|---|---|---|
| F&C Eastern European Fund USD | A0BLAT | IE0009751193 |
Die detaillierten Informationen zu diesen Fonds entnehmen Sie bitte dem beigefügten dauerhaften Datenträger.
Bitte beachten Sie, dass wir diese Information auf Grund unserer Informationspflicht an die in diesem Fonds investierten Kunden versenden werden.
Wir möchten an dieser Stelle darauf hinweisen, dass es sich bei dem beigefügten Dokument um ein Schriftstück der Fondsgesellschaft handelt. Für die Verwahrung und Administration von Anteilen und die Umsetzung von Aufträgen verweisen wir auf unsere allgemeinen Geschäftsbedingungen nebst Preis- und Leistungsverzeichnis.
Mit freundlichen Grüßen
FFB-Vertriebspartnerbetreuung
This document is important and requires your immediate attention. If you are in any doubt as to the action you should take you should immediately consult your stockbroker, bank manager, solicitor, tax adviser and other independent financial adviser. If you have sold or transferred all your shares in the Eastern European Fund of Traditional Funds plc, please forward this document to the purchaser or transferee, or to the stockbroker, bank manager or other agent through whom the sale or transfer was effected.
Traditional Funds plc
To: Holders of Shares of the Eastern European Fund (the “Shareholders”)
10 March 2014
Dear Shareholders,
Change of investment manager of the Eastern European Fund (the “Fund”) of Traditional Funds plc (the “Company”)
We wish to advise Shareholders that Nevsky Capital LLP (“Nevsky Capital”) has tendered its resignation as investment manager of the Fund due to what it believes is the impact of recent changes in the political and economic environment in Eastern Europe on the effectiveness of its investment process in those markets and, in particular, on the ability of its process to deliver the same profile of returns as it has been able to deliver in the past.
To enable Shareholders to continue to invest in the region through the Fund, the Board has considered a proposal from F&C Management Limited (“F&C”) to replace Nevsky Capital as the investment manager of the Fund. F&C already acts as investment manager of three other sub-funds of the Company, F&C Global Emerging Markets Fund, F&C High Income Bond and the F&C Emerging Asia Fund and is also part of the same group of companies as Thames River Capital LLP, which acts as promoter and distributor to the Company and as investment manager to the Company’s other funds.
We are pleased to advise you that the Board has decided to accept F&C’s proposal, and to appoint F&C as the new investment manager of the Fund, subject to regulatory approval by the Central Bank of Ireland. The date of the proposed appointment is 30 April, 2014, or such later date as the change is approved by the Central Bank, and Nevsky Capital have agreed to continue their management of the Fund until that date.
In accepting F&C’s proposal, the Board has taken into account a number of specific points made by F&C in its presentation to the Board:
• The track record of the F&C Eastern European team, led by Gareth Morgan, Kristof Bulkai and Claire Franklin, which has been delivering outperformance in Eastern European markets across various market cycles through both a dedicated Russian Fund and within the Eastern European component of its wider Global Emerging Market strategies.
• F&C believes its focus on finding quality companies led by management with sound corporate governance at an attractive valuation will continue to deliver returns for the Fund’s investors Registered Office: No. 78 Sir John Rogerson’s Quay, Dublin 2, Ireland Registered in Ireland
No. 302305 Tel +353 1 242 5529 Fax + 353 1 438 9528
An umbrella investment company with segregated liability between sub-funds.
Directors: J Fitzpatrick (IE), D Hammond (IE), V Holmes (GB), H Moir (GB), G Moloney (IE)
going forward and that the changes in the market environment that have led Nevsky Capital to resign will not affect the F&C process to the same degree.
• F&C’s process of focusing on finding quality stocks at the right price is employed across F&C’s Emerging and European capabilities, and benefits from the strength, not only of the direct investment team, but also from the resources of the entire market intellect of F&C including its European equity team, macro analysts, its emerging market debt team and its Governance and Sustainable Investments team.
• F&C have also placed emphasis on its heritage in emerging markets as evidence that its extensive experience and resource in emerging market investing will maximise the investment opportunity in the Eastern European region for the Fund investors.
• F&C has proposed reducing the cost structure of the Fund by removing the performance fee currently charged on the Fund with effect from the date it becomes the investment manager of the Fund. It has also agreed that there will be no increase in the annual investment management fees payable by the Company in relation to the Fund, and it will shortly propose the introduction of a range of new share classes with fee structures tailored to institutional investment.
F&C Management Limited is a United Kingdom incorporated company, which is a wholly owned subsidiary of F&C Asset Management plc. F&C Management Limited primary activity involves the provision of investment management services to investment trusts, offshore open and closed ended funds and accounts of institutional clients. The F&C group has £82.1 billion of funds under management as at 31 December 2013.
The change will have no effect on the investment objective and policy of the Fund nor, as stated above, will it lead to any increase in investment management fees payable by the Company. A draft of the revised prospectus of the Company, which will include the revised supplement of the Fund reflecting the appointment of F&C but with the principal terms unchanged, will be available at the registered office of the Company on or about 30 April, 2014.
Shareholders should also note that the existing US Dollar share class of the Fund is being re-named “Class A US Dollar Distributing” with effect from on or about 30 April, 2014. This re-naming does not alter any of the characteristics or rights associated with the share class.
We will ensure that the transition is as seamless as possible for our shareholders and that the Fund will remain open for subscription and redemption applications as normal throughout the transition period. You do not need to take any action further to this letter.
If you have any questions relating to this letter, please contact F&C Client Services +44 (0)20 7011 4444.
Yours faithfully,
David Hammond
Chairman
For and on behalf of
Traditional Funds plc
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