Notification of changes to the underlying fund of L21 Pictet Global Environmental Opportunities
06 April 2020
We have been notified by Pictet Asset Management (the “Company”) of the following temporary changes to the swing pricing mechanism of the underlying fund of L21 Pictet Global Environmental Opportunities. This change has taken effect from 26 March 2020 (the “Effective Date”).
Please see the below extract which has been taken from the global notice of the underlying fund of L21 Pictet Global Environmental Opportunities.
“We wish to inform you that due to the current exceptional market conditions resulting from the sanitary crisis due to the COVID-19, the board of directors of Pictet (the “Fund”) has taken the following decision in order to protect the existing and remaining shareholders of the Fund.
The current prospectus of the Fund (the “Prospectus”) provides that a swing pricing mechanism may be applied in certain circumstances to ensure that existing and remaining shareholders do not suffer negative effects in case of subscriptions or redemptions exceed certain thresholds. The maximum swing factor levels to be applied in case this mechanism is activated are disclosed in the Prospectus under section “Swing Pricing / Spread” and, as the case may be, in the relevant annexes to the Prospectus.
Although these maximum swing factor levels disclosed in the Prospectus are sufficient in normal market conditions, it is no longer the case in the current exceptional market conditions the Fund is facing.
Therefore, as allowed by the Commission de Surveillance du Secteur Financier, the supervisory authority of the Fund, in its FAQ released on 20 March 2020, the board of directors of the Fund has decided that higher swing factor levels could be applied for as long as is necessary due to these exceptional market conditions.
The revised swing factor levels that can be applied as from 26 March 2020 are the result of a robust internal governance process and are based on a robust methodology (including market / transaction data based analysis) that provides for accurate net asset values which are representative of prevailing market conditions.”
Should you have any questions regarding these changes, please contact International Funds & Investments.