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NESTOR funds: Notice to Unitholders subject to the CSSF

- Change in the fund management fee

- Change in the calculation of the performance fee

- Change in the amount of the performance fee of the V share classes

- Fund Management Change in the Sub-Fund NESTOR Far East

- Reference Portfolio NESTOR Europe Fund

- With effect from 1 July 2021

LRI Invest S.A.
9A, rue Gabriel Lippmann L-5365 Munsbach
R.C.S. Luxembourg B 28.101

Notice to Unitholders

NESTOR Fonds (Umbrella)

with the sub-funds

NESTOR Fernost Fonds
Unit class B (ISIN LU0054738967 / WKN 972880)
Unit class V (ISIN LU1433074256 / WKN A2ALWP)

NESTOR Osteuropa Fonds
Unit class B (LU0108457267 / WKN 930905)
Unit class V (LU1433074413 / WKN A2ALWR)

NESTOR Australien Fonds
Unit class B (ISIN LU0147784119 / WKN 570769)
Unit class V (ISIN LU1433073951 / WKN A2ALWL)

NESTOR Gold Fonds
Unit class B (ISIN LU0147784465 / WKN 570771)
Unit class V (ISIN LU1433074330 / WKN A2ALWQ)

NESTOR Europa Fonds
Unit class B (ISIN LU0054735948 / WKN 972878)
Unit class V (ISIN LU1433074173 / WKN A2ALWN)

Investors in the Luxembourg umbrella investment fund (fonds commun de placement à compartiments multiples) NESTOR Fund (hereinafter referred to as the "Fund") with its above-mentioned sub-funds are hereby informed that the Management Company LRI Invest S.A. has decided, subject to approval by the Commission de Surveillance du Secteur Financier ("CSSF"), to make the following changes with effect from 1 July 2021:

1. Modification of the fund management remuneration

The fund management fee will be changed from currently up to 0.45% p.a. to up to 0.60% p.a. for all share classes and sub-funds.

2. Change in the calculation of the performance fee

For all unit classes and sub-funds, the calculation of the performance fee will change as follows:

Current method of calculation B share classesCurrent method of calculation V share classesMethod of calculation in future (all unit classes)

A) The performance of the net asset value of the sub-fund in question must be greater, calculated on a daily basis, than that of the reference value defined in more detail below ("hurdle rate index value"), which is also calculated on a daily basis. The hurdle rate index value corresponds to the value of the benchmark index calculated daily on an indexed basis.

B) If, on the calculation day, the net asset value before deduction of the performance fee of the relevant sub-fund is above the hurdle rate index value, a performance fee will be paid on the absolute performance of the sub-fund in % (the maximum percentage for the individual sub-funds is shown in the table below). The performance fee is calculated on the basis of the number of units of the sub-fund in question in circulation on the calculation date.

After taking the performance fee into account, the performance of the sub-fund may not be worse than the performance of the benchmark index. The performance of the net asset value compared to the performance of the benchmark index shall be reviewed for each financial year.
financial year. If net impairments have to be reported in an observation period, these are not to be carried forward and taken into account with regard to the calculation of the performance fee for the following observation periods.

 

 

A) The net asset value of the unit class used to calculate the performance fee must be greater than the valid high watermark. The valid high watermark corresponds to the highest net asset value of the previous 5 financial year ends on which a performance fee payment was made (since this regulation came into force or the respective unit class was launched). The unit price of the corresponding unit class (excluding sales commission) at the time of the entry into force of this regulation is the first valid high watermark.

B) The performance of the net asset value of the relevant unit class must be greater, calculated on a daily basis, than that of the benchmark index defined in more detail below ("hurdle rate index value"), which is also calculated on a daily basis. The hurdle rate index value corresponds to the value of the benchmark index calculated daily on an indexed basis.

If the performance of the unit class exceeds the performance of the hurdle rate index value on the calculation date, a performance fee of % is charged on the relative performance, taking into account the high watermark.
performance (the maximum percentage for the individual sub-funds is shown in the table below). The performance fee is calculated on the basis of the number of units of the sub-fund in question in circulation on the calculation date. In accordance with the result of the daily comparison, any accrued performance fee for the relevant unit class is deferred or reversed if the performance of the benchmark index or the high watermark is underperformed. However, a negative total remuneration claim remains excluded in any case.

The result for the unit class shall be determined after the above-mentioned management fee and, if applicable, the other costs chargeable in accordance with the management regulations have been debited.

In the event of termination during the year, any provisions accrued pro rata temporis up to the effective date of termination shall be taken into account when calculating the performance fee. The Management Company shall be free to calculate a lower performance fee for one or more unit classes or to refrain from calculating a performance fee.

The Management Company shall receive a performance fee for the positive performance exceeding the benchmark performance per accounting period. The percentage amount of the performance fee and the respective benchmark are shown in the following overview for each sub-fund. The accounting period comprises one financial year and begins on 1 July of each financial year. When calculating the remuneration entitlement, all accounting periods since the date of the last payment of a performance fee, up to a maximum of the previous five accounting periods, shall be taken into account ("rolling reference period").

An entitlement to payment of the performance fee shall only exist if the unit value is above the level which last gave rise to payment of a performance fee, i.e. the initial issue price in the year of the initial issue of units ("high watermark principle").

The excess return on a valuation day is measured by comparing the unit value of the previous valuation day with the current valuation day, taking into account the current benchmark performance and the high watermark. The excess and shortfall returns per unit achieved on this valuation day are remunerated at the performance fee rate on the basis of the units in circulation on this valuation day and offset against the performance fee provisions achieved on the previous calculation days within the settlement period; negative values are carried forward but not set aside in the Fund. If there is no entitlement to withdraw a performance fee by the end of a complete reference period (five years), the high watermark at the beginning of the new reference period is set at the net asset value per unit at the end of the completed reference period.

By applying these principles, payment of the performance fee will only be made if all the conditions set out below are met:

- outperformed the benchmark performance at the end of an accounting period; and
- at the end of an accounting period, a new historical high has been reached after deduction of a performance fee (new high watermark).

When units are redeemed, a calculated performance fee per redeemed unit is fixed in the fund and can be withdrawn at the end of the accounting period ("crystallisation on redemption").

The performance fee is calculated as follows:


 

The performance fee will thus be calculated uniformly for all unit classes and sub-funds of the Fund in the future.

3. Change in the amount of the performance fee for the V unit classes

The amount of the performance fee for the V unit classes of all sub-funds will change from the current 20% to 15% in future.
 
4. Change of fund management in the NESTOR Far East Fund sub-fund

Santa Lucia Asset Management Pte. Ltd. will act as the fund manager of the NESTOR Far East Fund sub-fund in the future. Within the scope of the change, there is continuity in terms of personnel, so that it is a continuation of the current support.

The change in fund management will not lead to any additional changes in the fee structure.

5. NESTOR Europe Fund Reference Portfolio

The reference portfolio for calculating the relative value-at-risk approach for the NESTOR Europa Fonds sub-fund consists of 100% MSCI Europe (EUR). This is merely a concretisation of the information in the sales prospectus; it does not entail a change in practice.

If unitholders do not agree with the changes, they will continue to have the right to redeem their respective units free of charge at the Management Company, the Depositary and any Paying Agent until 2:00 p.m. (Luxembourg time) on 30 June 2021.

The current Prospectus of the Fund, including the Management Regulations, the Key Investor Information Document and the annual and semi-annual reports are available free of charge at the registered office of the Management Company, at the Depositary and at all Paying Agents.

Munsbach, 28 May 2021

LRI Invest S.A.