Dorval Global Convictions Fund transfer operation

You hold units in the Dorval Global Convictions Fund and we thank you for the trust you have placed in us. 

*The unit class is not registered in Luxembourg. 

 

 

 The current management objective is to achieve exposure to the international equity and interest rate markets and to offer a return net of fees that is better than the benchmark, 50% of which consists of the EONIA Capitalization Index 7 D and 50% of the MSCI World Net Dividends Reinvested. 

 

 

1. Planned change:

 

We hereby inform you that Dorval Asset Management has decided to change the management objective of the Dorval Global Convictions Fund by basing it on a new benchmark index. It has also decided to adjust the rate of exposure to equity markets and the rate of investment in the interest rate markets by defining a modified duration range to steer this rate and allowing the Fund to have a leverage of 2. 

 

Defining the Fund's new benchmark index will provide it with an indicator that is more representative of the management to be implemented. The changes pertaining to investment limits will help to guide the management of the Fund. 

 

The changes pertaining to the management objective, investment policy and risk profile were approved by the French Financial Markets Authority (AMF) on 14 August 2020. 

 

You will find below the details of the changes made to your fund, which will come into force on 30 September 2020. 

 

If these changes are not consistent with your investment objectives, you may redeem your units, without charge1, within a period of 30 days from the date on this letter. Since there are no exit charges for this Fund, the option to redeem units free of charge will continue to be available following the change. 

 

1The amount of any gains that may be realised as a result of such a redemption will be subject to tax as applicable on the date of the transaction.C2 -

 Inter nal Natixis 

 

2. Consequences of these changes: 

 

Change in the risk/reward profile: YES 

Increase in the risk/reward profile: YES 

Increase in charges: YES 

 

The performance fee may increase as a result of a change in the benchmark index used to calculate the performance fee. 

However, without knowing the future performance of the new composite index compared the previous one, we cannot predetermine an increase or decrease in the performance fee. 

 

  • Change to the management objective: 

 

It is noted that the management implemented aims to capture global growth through exposure to international equity and interest rate markets based on an analysis of the global macroeconomic environment as well as quantitative and qualitative criteria. 

 

Prior to the change, the management objective was to participate in the rise of the international equity and interest rate 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 and 50% of the MSCI World Net Dividends Reinvested. Following the change, the management objective is to achieve exposure to the international equity and interest rate markets and to offer a return net of fees that is better than the composite index comprised of 60% of the EONIA Capitalization Index 7 D and 40% of the MSCI World Equal Weighted Index. 

 

  • Change in investment strategy: 

 

Certain investment limits have been amended as follows: 

 

- Exposure to equity markets is now from 0% to a maximum of 60% of net assets, instead of 0% to a maximum of 100%. 

 

- Investment in interest rate markets, from 0% to 100% of net assets, will now be managed within a modified duration range of between -5 and +10. 

 

For interest rate products, modified duration is the indicator used to measure the impact of interest rate changes on prices. We therefore believe this indicator is more relevant for monitoring the interest rate risk on the bond portion of the portfolio. 

 

- While leverage is not currently allowed, the Fund may use a leverage of up to 200% of net assets, allowing it to have an exposure to the interest rate markets of up to 200%. 

 

 

  • Other changes not subject to AMF approval 

 

- Change to the financial year-end: the financial year of the Fund will end on the day of the last net asset value of the month of September, instead of the last working day in December. 

 

- Change to subscription fees payable to third parties:

 

o I and N units: removal of the fee of up to 4%; 

 

o R units: reduction in the fee from a maximum of 4% to a maximum of 2%. 

 

 

- Change to the performance fee calculation due to the change to the benchmark index: 20% of the performance relative to the new composite index, 60% Eonia + 40% MSCI World Equal Weighted Net Dividends Reinvested, instead of the former composite index, 50% Eonia + 50% MSCI World Net Dividends Reinvested. 

 

The other features of the investment strategy and the management fees remain unchanged. 

 

The annex includes a table summarising all the changes that will be effective as of 30 September 2020. 

 

 

3. Important things for investors to remember: 

 

We would like to remind you of the following points: 

- it is necessary and important to read the Key Investor Information Document (KIID) carefully; 

- if you are happy with the adjustments arising from this change, you need take no further action; 

- if you do not agree with the adjustments, you may redeem your units, without charge, for a period of 30 days following receipt of this letter; 

- if you have no opinion on this change, please contact your usual advisor who can provide you with any additional information that you may require regarding this operation or the growth of your investments. 

 

The KIID and the Fund's prospectus are available: 

- From the registered office of the management company, Dorval Asset Management – 1 Rue de Gramont – 75002 PARIS, France. 

 

 

They will be sent to you within eight business days on written request. 

- By email to: informations@dorval-am.com 

- Or on the management company’s website: www.dorval-am.com 

 

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