Gamax Funds - Notice to Unitholders of Asia Pacific
December 17th 2019
Mediolanum International Funds Limited
4th Floor, The Exchange, Georges Dock, IFSC, Dublin 1, Ireland
NOTICE TO UNITHOLDERS OF GAMAX FUNDS – ASIA PACIFIC
The board of directors (the “Board of Directors”) of Mediolanum International Funds Limited, the management company (the “Management Company”) of Gamax Funds FCP (“Gamax Funds”), would like to inform you that with effect as of 2 January, 2020 the following amendments will be made in the Prospectus and Fund Rules of Gamax Funds (respectively, the “Prospectus” and the “Fund Rules”):
I. Language of the Prospectus and Fund Rules
The Prospectus and Fund Rules language will change from German to English and the entire Prospectus and Fund Rules will consequently be restated and amended in English.
II. Amendments to the chapter 5. “Taxes and costs” of the Prospectus
The transfer agent and registrar fee for I units will be reduced from up to 0.13% p.a. to up to 0.10% p.a. of the net assets of the respective Fund.
III. Amendments to the chapter 6.8.5. “Securities financing transactions and total return swaps” of the Prospectus
The participating Fund and the securities lending agent will be credited respectively 90% and 10% of the income generated from securities lending transactions (currently 70% and 30% respectively).
IV. Amendments to the Fund’s annex
The “Performance fee” section of the Fund’s annex will be amended with respect to the method of calculation of the performance fee. The proposed new methodology will result in significantly lower performance fees being charged in the future with the main changes being introduced by the new performance fee methodology as follows:
it will be calculated and crystalized (and paid from the Fund’s assets to the Management Company) on an annual basis instead of a monthly basis;
it contains a high-water-mark feature i.e. the fee can only ever be charged on new annual positive Fund performance. A high-water-mark requires that a performance fee can only be paid if the Fund has exceeded previous high levels of performance;
the new annual positive performance in a year has to exceed a fixed hurdle rate 5% for a fee to be charged. A hurdle rate is a minimum annual rate of performance which the Fund must exceed in order for a performance fee to be paid. The fee will be charged at 20% of the excess, subject to a new annual cap of 1%.
A full description of the performance fee calculation methodology is available on request from the Management Company.
V. Formal amendments to the Prospectus
The following formal changes to the Prospectus will be implemented:
a. Review of definitions and style
Minor and consistency tidy up changes will be implemented throughout the Prospectus.
b. Organization structure of the management company
The composition of the Board of Director will be updated in section “Member of the Board of Directors”.
c. Update of the section “Paying agent in Austria”
Section “Paying agent in Austria” will be updated to reflect the current address of UniCredit Bank Austria AG.
d. Update of the section “Independent auditors”
Section “Independent auditors” will be updated to reflect the current address of Deloitte S.A.
Capitalized terms not defined herein have the meaning as set forth in the Prospectus.
In accordance with the provisions of the Prospectus, affected unitholders of the Fund disagreeing with the changes described under points I. and IV. above may redeem their units of the respective sub-fund at the applicable net asset value per unit free of any charge from the date of this notice.
An updated version of the Prospectus, dated 2 January, 2020, will be made available at the registered office of the management company.
Dublin, 16 December 2019
The Board of Directors