CHALLENGE FUNDS
(the “Fund”)
(UCITS authorised by the Central Bank of Ireland pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as amended)
NOTICE TO UNITHOLDERS
Mediolanum International Funds Limited (the “Manager”), manager of the Fund, wishes to notify Unitholders of Challenge Liquidity Euro Fund (the “Sub-Fund”) of a lifting of the existing temporary management fee waivers for the L and S Classes of the Sub-Fund (previously notified to you), with effect from on or about 30 May 2025 (the “Effective Date”). For the avoidance of doubt, please note that the existing temporary investment management fee/cash management fee waivers (previously notified to you) shall remain in place until such time as further notified to you.
To offset the impact of the lifting of the above management fee waivers, the Manager wishes to notify Unitholders of the Sub-Fund of a permanent reduction in the management fee for the L and S Classes of the Sub-Fund as follows, with effect from on or about the Effective Date:
L Class will be reduced by 20bps (from 0.60% to 0.40%); and
S Class will be reduced by 30 bps (from 0.70% to 0.40%).
The net impact of the lifting of the existing management fee waivers and the proposed reduction in the management fees, as outlined above, will result in only a slight increase (of 20 bps) to the total management fees chargeable on the L Classes of the Sub-Fund and a slight increase (of 10 bps) to the total management fees chargeable on the S Classes of the Sub-Fund.
The Manager believes that the recent rise in interest rates has led to a more favourable environment for fixed income investments with short term yields increasing and that the proposed change in fee structure aligns with the current economic environment and the Sub-Fund's investment strategy, ensuring transparency and fairness for Unitholders.
The S and L Classes Information Cards to the Prospectus will be updated to reflect the above reductions in management fee on the Effective Date, a copy of which will be available at http://www.mifl.ie/products/challenge-funds.
Mediolanum International Funds Limited
16 May 2025