The Board of Directors of Evli Fund Management Company Ltd (“Evli”) has decided to amend the rules of the UCITS fund Evli Emerging Frontier and non-UCITS fund Evli Q7 (hereinafter each separately “Fund” or together “Funds”). The rule amendment concerns the method of calculation of the performance-based fee charged by the Funds. The rule amendment, which is described in more detail below, will enter into force on April 29, 2024.
The Board of Directors of Evli Fund Management Company Ltd (“Evli”) has decided to amend the rules of the UCITS fund Evli Emerging Frontier and non-UCITS fund Evli Q7 (hereinafter each separately “Fund” or together “Funds”). The rule amendment concerns the method of calculation of the performance-based fee charged by the Funds. The rule amendment, which is described in more detail below, will enter into force on April 29, 2024.
The model for calculating the performance-based fee will be simplified compared to the current model. Still under the current rules, the value of the fund unit series must exceed its highest historical value and the return on the fund unit series must exceed the hurdle rate or the return of the benchmark index. In accordance with the new calculation model, the return of the fund unit series must exceed the hurdle rate or the return of the benchmark index calculated over the period of the last 24 months.
After the amendment, if both conditions mentioned above are met, only one return figure will be calculated: the return between the value of the fund unit series on the valuation date and the highest historical value. The maximum amount of the performance-based fee of the above-mentioned return figure is stated in the Fund’s rules.
More information on the performance-based fee and examples of its application will be available in the fund prospectus when the rule amendment described above enters into force.
The Financial Supervisory Authority confirmed the amendment to the fund rules on February 28, 2024. The Funds’ amended rules will enter into force on April 29, 2024, and will apply to all unit holders. The amendments do not require any action from unit holders.
The updated rules of Evli’s Funds will be available by March 26, 2024, on the webpage www.evli.com/fundrules or from our Investor Service. Our Investor Service will gladly answer any questions you may have regarding the amended rules and fund investment by telephone, +358 (0)9 4766 9701, or by email at info@evli.com from 9.30 am to 4.30 pm on weekdays (Finnish time, CET+1).
EVLI FUND MANAGEMENT COMPANY LTD
