Inclusion of non-financial environmental, social, and governance (ESG) criteria in the management of the Dorval Convictions French Fund

The current management objective is to outperform the benchmark index (50% represented by the EONIA Capitalization Index 7 D (Bloomberg code: OISEONIA) and 50% represented by the EUROSTOXX 50 NR (EUR) index calculated with net dividends reinvested) (Bloomberg code: SX5T)) over an investment period of a minimum of 3 years, via a flexible allocation between equity and interest rate markets. The Fund is managed on a fully discretionary basis.

 

1. PLANNED CHANGE

To ensure that all your investments factor in not only potential financial performance but also the level of social responsibility of issuers that have invested in the portfolio, Dorval Asset Management has decided to change the management objective and investment strategy of the Dorval Convictions Fund.

The Fund will therefore adopt a stock-picking strategy governed by Dorval Asset Management’s socially responsible investment (SRI) policy. The SRI refers to considering, in addition to financial analysis, non-financial SRI criteria (environmental, social, governance) in a systematic and engaging manner in investment decisions. Among these criteria, Governance is placed at the centre of the Fund’s ESG analysis.

The changes pertaining to the management objective and investment policy have not required the approval of the French Financial Markets Authority.

These changes will take place automatically on 10 March 2021, at no cost to you and with no action required on your part.

 

2. CONSEQUENCES OF THESE CHANGES:

Risk profile: these changes have no impact on the Fund’s risk/reward profile.

  • Change to the risk/reward profile: NO
  • Increase in the risk/reward profile: NO

Fee level: The fees for your investment remain unchanged.

  • Changes to fees: NO
  • Fee increases: NO

The Fund’s security selection method has been changed to include non-financial criteria (ESG) in all stock-picking in a systematic and engaging manner. The Fund’s management objective and investment strategy have been accordingly changed.

As such, from 10 March 2021, portfolio construction and management will combine both financial and non-financial approaches and be based on:

1. The determination of the rate of exposure to French and European equities,
2. The identification of investment themes deemed to be promising,
3. Stock picking within these investment themes, supplemented by stocks picked based on their own value,
4. The distribution of such stocks in the portfolio, according to a proprietary scoring methodology.

Stocks will be rated based on three analyses, each founded on a set of criteria:

5. Financial analysis,
6. Non-financial analysis,
7. Analysis of the “executives/business” tandem.

Each analysis will be reviewed at least once a year and updated along the way based on information and/or events in the life of the companies held in the portfolio.

The synthetic score derived from these three analyses will inform the picking of stocks and their weighting the Fund portfolio.

In addition, The Fund’s prospectus has been updated with references to Regulation (EU) 2019/2088 on sustainability‐related disclosures in the financial services sector (the “SFDR Regulation”).

The annex presents a table comparing all changes.

 

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 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:

  • Registered office of the management company, Dorval Asset Management – 1 Rue de Gramont – 75002 PARIS, France
  • at the paying and information agent’s address, CACEIS Bank, Luxembourg Branch, 5 allée Scheffer, L-2520 Luxembourg.

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

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