Ossiam Euew Regulatory News (S6EW)

OSSIAM LUX

Société Anonyme qualifying as a Société d’Investissement à Capital Variable

Registered Office: 49 Avenue J.F. Kennedy, L-1855, Luxembourg

R.C.S. Luxembourg: B 160071

(the “Company”)

 

 

NOTICE TO SHAREHOLDERS OF THE SUB-FUND

 OSSIAM STOXX® EUROPE 600 ESG EQUAL WEIGHT NR

 

 

Luxembourg, 23 November 2022

 

Dear Shareholders,

 

The board of directors of the Company (the “Board”) would like to inform you that amendments will be made to the prospectus of the Company in relation to the following sub-fund as from 23 January 2023 (the “Effective Date”):

 

OSSIAM STOXX® EUROPE 600 ESG EQUAL WEIGHT NR (the “Sub-Fund’)

 

Amendment to the Sub-Fund’s investment policy

 

Please note that:

 

the Sub-Fund, which currently primarily uses synthetic replication to replicate the performance of the STOXX® Europe 600 ESG Broad Market Equal Weight Index Net Return EUR closing level, will solely use physical replication, and the Sub-Fund will no longer be permanently invested for a minimum of 75% in equities or rights issued by companies having their registered office in the European Economic Area, excluding Liechtenstein.

 

Please find below a table setting out the current investment policy section and the updated investment policy of the Sub-Fund:

 

Current investment policy (effective until 22 January 2023)

New investment objective and policy (effective as from 23 January 2023)

Investment policy:   In order to achieve its investment objective, the Fund will primarily use index swaps with the objective of gaining exposure to the Index through synthetic replication. In that case, the Fund will invest in a portfolio of assets, the performance of which will be exchanged against the performance of the Index through swap agreements with a swap counterparty.   This method implies a counterparty risk as described in the below Risk and Reward Profile. The net asset value per Share of the Fund will therefore increase (or decrease) according to the evolution of the Index. The counterparty to the swaps will be a first class financial institution that specialises in this type of transaction. The Fund may also enter into multiple swap agreements with multiple swap counterparties with the same characteristics as previously described. In case of synthetic replication, an index license contract may exist between the swap counterparty (ies) and the Index Provider; therefore, licensing fees may be included in the swap costs.   Alternatively, the Fund may invest in all or part of the equity securities comprised in the Index.   The Fund may, with due regard to the best interest of its Shareholders, decide to switch partially or totally from one of the above described policies to the other (i.e. synthetic replication vs. physical replication).   Where synthetic replication is used, the voting rights attached to the assets to which the Fund is exposed will not be exercised by the swap counterparties.   In both replication strategies, the Fund shall be permanently invested for a minimum of 75% in equities or rights issued by companies having their registered office in the European Economic Area, excluding Liechtenstein.   In addition and on an ancillary basis, the Fund may use other derivatives for hedging and investment purposes, as described under "Use of Derivatives, Special Investment and Hedging Techniques" in the Prospectus.   The Reference Currency of the Fund is the Euro.

Investment policy:   In order to achieve its investment objective, the Fund will primarily invest, through physical replication, in all or part of the equity securities comprised in the Index and in substantially the same weights as in the Index.   In addition and on an ancillary basis, the Fund may use other derivatives for hedging and investment purposes, as described under "Use of Derivatives, Special Investment and Hedging Techniques" in the Prospectus.   The Reference Currency of the Fund is the Euro.

 

Amendments to the “Risk and Reward Profile” section of the prospectus in relation to the Sub-Fund

 

Please note that the following risk factor has been added for clarification purposes:

 

Currency risk

The Fund could be exposed to securities denominated in a number of different currencies other than the Reference Currency. Changes in foreign currency exchange rates will affect the value of some securities held by the Funds and can bring additional volatility

 

Please note that the following risk factor has been deleted as no longer relevant following the change of investment policy:

 

• Derivative and Counterparty risk

 

Funds may enter into listed and unlisted derivative contracts in order to have an exposure to underlying assets or to protect their direct assets. Payments on these contracts vary with changes of the value of the underlying assets. These contracts may cause the Funds to have a higher market exposure than they would have otherwise, which may in some cases increase losses.

 

Unlisted contracts are agreed with a specific counterparty. If the counterparty goes into liquidation or fails or defaults on the contract the Fund could suffer a loss. Because they are not listed, these contracts can be difficult to price.

 

 

Ineligibility to the French savings plan “PEA” for French investors

 

As from the Effective Date, the Sub-Fund will no longer be eligible to the French savings plan called “PEA” for French investors.

 

In the event that your investment has been made via a PEA and in order to avoid the closure of your PEA and the loss of any associated tax benefits, you must withdraw or sell your shares before 22 March 2023, in accordance with the French tax administrative doctrine (BOI-RPPM-RCM-40-50-50 § 40 and s.).

 

 

These changes will enter into effect as from 23 January 2023.

 

Copies of the Prospectus and relevant key investor information documents (KIIDs) reflecting the above changes will be available free of charge at the registered office of the Company, once available.

 

Should you disagree with the planned changes mentioned above, you may redeem your shares, free of redemption charge until 22 January 2023 in accordance with the redemption procedure set out in the Prospectus.

 

Any further information may be obtained by sending an email to info@ossiam.com.

 

Yours faithfully,

 

On behalf of the Company,

 

The Board