The Board of Directors of Evli Fund Management Company Ltd has decided to amend the rules of the UCITS funds and non-UCITS funds managed by the company. The amendments are primarily based on the comprehensive reform of the Finnish Act on Common Funds which entered into force in March 2019, the harmonization of fund trading cut-off times, and changes in the payment schedule of redemptions and subscriptions.
The main rule amendments affecting all Evli funds are:
- The cut-off time for subscription and redemption orders to the funds will be 2.00 pm (Finnish time, CET+1). The cut-off time for subscription and redemption orders has been standardized. Subscription and redemption orders that have been made before the cut-off time will be effected in accordance with the rules of each fund at the net asset value of the fund unit confirmed for either the order date or the banking day following the order date.
- The payment schedule for subscriptions and redemptions in our funds will change. Payments for subscriptions and redemptions will be transferred to or from the account two banking days from the order day (T+2, “Payment Date”), with the exception of the Evli Euro Liquidity fund, in which payments will be transferred to or from the account one banking day after the order day (T+1, “Payment Date”). The change in the payment schedule will also apply to the non-UCITS funds Evli Factor Premia and Evli Q7.
The subscriptions of institutional clients* and distributors (regardless of who the end client is) will be processed on a contractual mode basis. Subscriptions will be confirmed at the net asset value of the order date when a subscription order has been received by the cut-off time, and before the cash assets needed for the subscription payment are in the investor’s account at Evli. The subscription payment will be debited on the Payment Date.
The subscriptions of other clients (“Retail Client”) will be processed on an actual mode basis. Subscriptions will be confirmed at the net asset value of the order date when a subscription order has been received by the cut-off time, and the investor’s cash account at Evli contains sufficient cash assets to pay for the subscription. A reservation that is equivalent to the subscription payment will be set on the investor’s cash assets. The subscription payment will be debited retrospectively on the Payment Date.
A more detailed description of the payment schedule of our funds is provided in the fund prospectus valid at any particular time and in the order instructions of the funds.
- The arrangement of the annual general meeting of unit holders will be discontinued as permitted by the valid Act on Common Funds. In the future, a meeting of unit holders will be arranged in accordance with the Act on Common Funds in the manner described in the rules of the funds, for example, when the Board of Directors of the Management Company deems it necessary.
- Physical share certificates of fund holdings will no longer be issued to unit holders.
- As permitted by the Act on Common Funds, the Management Company may, on its own initiative, redeem the fund units of a unit holder without the unit holder’s order or consent, if there is a strong argument related to the unit holder for the redemption and the argument also relates to the fact that the unit holder’s holding in the mutual fund may cause liabilities to the Management Company that the Management Company cannot be reasonably required to cover. The strong argument is described in greater detail in the rules of the funds.
- In exceptional cases, the Management Company and unit holder may agree that the fund units can alternatively be redeemed by giving the unit holder securities of the fund, or securities and cash, corresponding to the redemption price. When making a redemption agreement, the Management Company must ensure that the transaction will not endanger the interests of the fund’s other unit holders.
The main rule amendments affecting individual Evli funds are:
- The responsibility principles with which the funds comply have been added to the rules of the funds, and these may also be described in greater detail in the Key Investor Information Document of each fund.
- The maximum fee of the Evli Nordic, Evli Finnish Small Cap and Evli Finland Select funds payable to the Management Company and the custodian under the rules will decline from 3% to 2%.
- The rules of the Evli Equity Factor Europe and Evli Equity Factor USA funds have been specified in the area of the investment strategy. In the selection of investments, the funds focus on academically determined factors and the investment strategy is systematic. The factors are described in greater detail in the Key Investor Information Document of the funds.
- A section has been added to the rules of the Evli Euro Liquidity, Evli Target Maturity Nordic Bond 2023, Evli Emerging Markets Credit and Evli Nordic Corporate Bond funds regarding the use of an assessment within the Management Company that contains, for example, a credit risk analysis in the selection of investment instruments. External credit rating agencies and other external sources may be used in the assessment.
- In the Evli Sweden Equity Index and Evli Swedish Small Cap funds, the relevant sections of the common rules for funds will be observed in the future regarding the net asset value of the fund and the fund units, and the subscription, redemption and switch of fund units.
The Financial Supervisory Authority confirmed the amendments to the rules of the mutual funds on March 9, 2020. The amended fund rules will enter into force on June 15, 2020 and will apply to all unit holders. If a unit holder does not approve of the rule amendments or the related price changes, the fund units can be redeemed or switched to another Evli mutual fund.
The rules of Evli’s funds will be available on May 15, 2020 and the Key Investor Information Document of the funds and the updated fund prospectus by June 15, 2020 at www.evli.com 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 e-mail at info@evli.com from 9.30 am to 4.30 pm on weekdays (Finnish time, CET+1).
*Institutional clients are companies and entities subject to supervision or authorization by the authorities that engage in their own investment operations or act on behalf of their clients, for example credit institutions, fund management companies and the mutual funds managed by them, pension trusts, pension funds, mutual insurance companies, savings banks, and also cooperative societies, trusts, certain associations, such as labor unions for example, public limited companies, public authorities and state-owned enterprises, governments, the state church and other religious entities, and international organizations.
EVLI FUND MANAGEMENT COMPANY LTD
