Mandarine Equity Income - Prospectus French Mutual Fund (Fonds Commun de Placement Français) 2022/01/01
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Mandarine Equity Income
Prospectus
January 2022
French Mutual Fund (Fonds Commun de Placement Français)
UCITS governed by French law covered by European Directive 2014/91/EU - UCITS VMandarine Equity Income - Prospectus
I. GENERAL CHARACTERISTICS 4
I.1 TYPE OF UCITS 4
I.2 NAME 4
I.3 LEGAL FORM AND MEMBER STATE IN WHICH THE UCITS WAS ESTABLISHED 4
I.4 DATE OF CREATION AND INTENDED DURATION 4
I.5 OVERVIEW OF THE MANAGEMENT OFFER 4
I.6 INDICATION OF THE LOCATION WHERE THE MUTUAL FUND REGULATIONS, THE LATEST ANNUAL
REPORT AND THE LATEST INTERIM REPORT ARE AVAILABLE 5
I.7 PUBLICATION OF SUSTAINABILITY INFORMATION 5
II. PARTICIPANTS 7
II.1 MANAGEMENT COMPANY 7
II.2 DEPOSITARY AND CUSTODIAN 7
II.3 STATUTORY AUDITOR 8
II.4 MARKETER 8
II.5 CENTRALISING AGENT 8
II.6 APPOINTED REPRESENTATIVES 8
III. OPERATING AND MANAGEMENT PROCEDURES 9
III.1. GENERAL CHARACTERISTICS 9
III.1.1 Features of the units or shares 9
III.1.2 Closing date 9
III.1.3 Information on the tax system 9
III.2. SPECIAL PROVISIONS 10
III.1.4 ISIN codes 10
III.1.5 Management objective 10
III.1.6 Benchmark index 10
III.1.7 Information to be communicated to UCI investors on the management style 11
III.1.8 Investment strategy 11
IV. COMMERCIAL INFORMATION 21
V. INVESTMENT RULES 21
VI. GLOBAL RISK 21
VII. ASSET VALUATION RULES 22
VII.1 ASSET VALUATION RULES 22
VII.2 ACCOUNTING METHOD 23
2 UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022Mandarine Equity Income - Prospectus
VIII. REMUNERATION 23
IX. REGULATIONS 24
SECTION 1 - ASSETS AND UNITS 24
Article 1 - Co-ownership units 24
Article 2 - Minimum assets 24
Article 3 - Issue and redemption of units 24
Article 4 - Calculation of the Net Asset Value of the unit 25
SECTION 2 - FUND OPERATION 25
Article 5 - The Management company 25
Article 5a - Operating rules 25
Article 6 - The Depositary 25
Article 7 - The Statutory auditor 25
Article 8 - Financial statements and management report 26
SECTION 3 - INCOME ALLOCATION PROCEDURES 26
Article 9 - Procedures for allocating income and amounts available for distribution 26
SECTION 4 - MERGERS - DEMERGERS - DISSOLUTION - LIQUIDATION 27
Article 10 - Mergers - Demergers 27
Article 11 - Dissolution - Extension 27
Article 12 - Liquidation 27
SECTION 5 - DISPUTES 27
Article 13 - Jurisdiction - Choice of domicile 27
UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022 3Mandarine Equity Income - Prospectus
I. GENERAL CHARACTERISTICS
I.1 TYPE OF UCITS
UCITS governed by French law covered by Directive 2014/91/EU - UCITS V
I.2 NAME
Mandarine Equity Income (hereinafter referred to as the “Fund”).
I.3 LEGAL FORM AND MEMBER STATE IN WHICH THE UCITS WAS
ESTABLISHED
Mutual fund established on the territory of the French Republic.
I.4 DATE OF CREATION AND INTENDED DURATION
This Fund was created on 20 January 2005 for a period of 99 years.
I.5 OVERVIEW OF THE MANAGEMENT OFFER
Allocation Currenc Minimum Minimum
Original
of y Target initial subsequent
ISIN code net asset Decimalisation
distributable denomi investors subscription subscription
value
sums nation (1)
Capitalisation/ All subscribers, in EUR 1/10000th
M units FR0010147728 EUR EUR 100 1/10000
Distribution particular Suravenir 40,000,000 of a unit
All subscribers, in
EUR 1/10000th
I units FR0010396374 Capitalisation EUR particular Institutional EUR 100 1/10000
1,000,000 of a unit
investors
EUR 1/10000th
R units FR0010396382 Capitalisation EUR All subscribers EUR 100 1/10000
50 of a unit
EUR 1/10000th
F units FR0013300795 Capitalisation EUR All subscribers (2) EUR 100 1/10000
50 of a unit
Capitalisation/ EUR 1/10000th
F(d) units FR0013300803 EUR All subscribers (2) EUR 100 1/10000
Distribution 50 of a unit
Capitalisation/ 1/10000th
R(d) units FR0013300811 EUR All subscribers EUR 50 EUR 100 1/10000
Distribution of a unit
All subscribers, in
Capitalisation/ EUR 1/10000th
I(d) units FR0013300829 EUR particular Institutional EUR 100 1/10000
Distribution 1,000,000 of a unit
investors
All subscribers, in
EUR 1/10000th
L units FR0013300837 Capitalisation EUR particular Institutional EUR 100 1/10000
40,000,000 of a unit
investors
Institutions governed by
L(d) EUR 1/10000th
FR0014001681 Distribution (3) EUR German and Austrian EUR 100 1/10000
units 40,000,000 of a unit
law (4)
(1) except the Management Company, which may only take out one unit.
(2) For F and F(d) units: units reserved for all investors, and, solely as part of subscription or distribution within the European Union,
who are:
(a) Financial intermediaries who, owing to regulations applicable to their situation, are not authorised to receive or hold any non-
monetary fees or benefits; or
4 UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022Mandarine Equity Income - Prospectus
(b) Subscribers subscribing to portfolio management services on behalf of third parties (management by mandate) and/or
independently provided investment consulting within the meaning of Directive 2014/65/EU of the European Parliament and of the
Council of 15 May 2014 on markets in financial instruments within the European Union (the MiFID II Directive);
(c) Distributors subscribing in the context of investment advice not considered to be independent within the meaning of Directive
MIF2, on the basis of a contract with their customer and where such a distributor neither receives nor holds on to any commission
or other non-monetary benefit under Directive MIF2.
(3) Distribution frequency of L(d) units: quarterly
(4) Legal persons subject to German legal and tax rules, especially those relating to the provisions of § 5
Investmentsteuergesesetz and also legal persons governed by Austrian law.
I.6 INDICATION OF THE LOCATION WHERE THE MUTUAL FUND
REGULATIONS, THE LATEST ANNUAL REPORT AND THE LATEST
INTERIM REPORT ARE AVAILABLE
The Fund's prospectus, the KIIDS of the various unit categories, the annual and interim reports and the breakdown of assets are
sent, within eight (8) business days, free of charge upon written request to:
MANDARINE GESTION, 40, Avenue George V- 75008 Paris
E-mail: serviceclient@mandarine-gestion.com
The prospectus, the KIIDS of the various Fund units, the annual and interim documents are available at www.mandarine-
gestion.com.
Dissemination of the portfolios
The Management Company may be required to transmit all or part of the information concerning the composition of the portfolio of
the UCITS to enable some of its investors, in particular institutional investors, to comply with their obligations derived notably from
Directive 2009/138/EC ("Solvency II") in terms of transparency (SCR – Solvency Capital Requirement). The Management
Company will ensure that each investor who is a recipient of this information has established the procedures for managing
sensitive information prior to the transmission of the composition of the portfolio so that such information be used only for
calculating prudential requirements. These procedures must also prevent the practices of market timing or late trading.
I.7 PUBLICATION OF SUSTAINABILITY INFORMATION
Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (known as the
“Disclosure Regulation”)
As a player in the financial markets, the management company of the UCI is subject to Regulation 2019/2088 of 27 November
2019 on sustainability-related disclosures in the financial services sector (known as the “Disclosure Regulation” ).
This Regulation lays down harmonised rules for financial market participants relating to transparency with regard to the integration
of sustainability risks (Article 6 thereof), the taking into account of negative impacts in terms of sustainability, the promotion of
environmental or social characteristics in the investment process (Article 8 thereof) or sustainable investment objectives (Article 9
thereof).
Sustainable investment corresponds to an investment in an economic activity that contributes to an environmental objective,
measured for example by means of key indicators in terms of efficient use of resources concerning the use of energy, renewable
energies, raw materials, water and land, in terms of waste production and greenhouse gas emissions or in terms of effects on
biodiversity and the circular economy, or an investment in an economic activity that contributes to a social objective, in particular an
investment which contributes to the fight against inequalities or which promotes social cohesion, social integration and labour
relations, or an investment in human capital or economically or socially disadvantaged communities, provided that these
investments do not cause material prejudice to any of these objectives and that the companies in which the investments are made
apply good governance practices – in particular with regard to sound management structures, employee relations, remuneration of
competent staff and compliance with tax obligations.
Sustainability risk is defined as an environmental, social or governance event or situation which, if it occurs, could have a material
adverse effect – actual or potential – on the value of the investment.
UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022 5Mandarine Equity Income - Prospectus It should be noted that this risk can therefore be understood as a specific category of financial risk (measured by its potential negative impact on the portfolio's return). Sustainability risk is primarily taken into account in the following way in the implementation of the portfolio management: - Like any other risk with a potential burden on the portfolio's return, sustainability risk is taken into account by management prior to acquiring a security and throughout the investment. To do so, management particularly relies on the expertise of Mandarine Gestion's team of ESG analysts. - A synthetic sustainability risk indicator (ISRD) has been developed and is used to measure the exposure of each portfolio to sustainability risk. Limits based on this indicator are applied to the Fund. If exceeded, adjustments to the portfolio may be required. - The risk and ESG analysis teams draw up and maintain exclusion lists to prohibit the purchase of securities that pose a particularly high sustainability risk. In particular, issuers that are the subject of serious controversy may be placed under surveillance or banned for investment. The Fund's exposure to sustainability risk is measured by a risk scale ranging from 1 to 5 (from negligible risk to severe risk), based on the level of the ISRD calculated for the Fund. At the date of publication hereof, the Management Company's analysis has determined that the Fund has exposure to level 3 sustainability risk, corresponding to a moderate level of risk. 6 UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022
Mandarine Equity Income - Prospectus
II. PARTICIPANTS
II.1 MANAGEMENT COMPANY The primary objective of the Depositary is to protect the
interests of the unitholders/investors in the UCITS, which
MANDARINE GESTION always prevail over commercial interests.
Société Anonyme - 40, Avenue George V - 75008 PARIS Potential conflicts of interest may be identified, in particular if
Portfolio management company approved by the Autorité des the Management Company also maintains commercial
marchés financiers (AMF – Financial Markets Authority) on 28 relations with BNP Paribas Securities Services SCA in parallel
February 2008 under no. GP 0800 0008. to its appointment as Depositary (which may be the case if
BNP Paribas Securities Services calculates, by delegation of
II.2 DEPOSITARY AND the Management Company, the NAV of the UCITS for which
BNP Paribas Securities Services is the Depositary, or when a
CUSTODIAN group relationship exists between the Management Company
BNP PARIBAS SECURITIES SERVICES and the Depositary).
Partnership limited by shares registered with the Registre du
Commerce et des Sociétés (Trade and Companies Register) To manage these situations, the Depositary has implemented
in Paris under No 552 108 011. and maintains a management policy for conflicts of interest
Credit establishment approved by the Autorité de Contrôle with the following objectives:
Prudentiel et de Résolution. - Identifying and analysing situations involving potential
Registered office: 3, Rue d’Antin - 75002 PARIS conflicts of interest
Postal address: Grands Moulins de Pantin - 9, Rue du - Recording, managing and monitoring situations involving
Débarcadère - 93500 PANTIN potential conflicts of interest:
◦ based on permanent measures in place to manage conflicts
BNP PARIBAS SECURITIES SERVICES, a partnership of interest, such as segregation of duties, separation of
limited by shares (société en commandite par actions), hierarchical and functional lines, monitoring of internal
registered in the Trade and Companies Register under insider lists, and dedicated IT environments;
number 552 108 011, is an establishment approved by the ◦ by implementing on a case-by-case basis:
Autorité de Contrôle Prudentiel et de Résolution (ACPR) and ✔ preventive and appropriate measures such as the creation
subject to the supervision of the Autorité des Marchés of ad hoc watchlists, new Chinese walls, or verifying that
Financiers (AMF), whose registered office is at 3 rue d'Antin, transactions are properly processed and/or informing
75002 Paris. affected customers
✔ or by refusing to manage activities that may give rise to
As part of the Fund's liabilities management, the subscription, conflicts of interest.
redemption and issuer account holding processing functions
are carried out by the depositary in connection with Euroclear Description of any custodial functions delegated by the
France, through which the units are registered. Depositary, list of delegates and sub-delegates and
identifying conflicts of interest likely to arise from such
Description of the responsibilities of the Depositary and delegation
potential conflicts of interest The UCITS Depositary, BNP Paribas Securities Services
SCA, is responsible for the custody of the assets (as defined
Directive 2009/65/EC, as amended by Directive 2014/91/EU, in Article 22.5 of Directive 2009/65/EC, as amended by
referred to as "UCITS 5", specifies the responsibilities of Directive 2014/91/EU). In order to provide services related to
UCITS depositories. It entered into force on 18 March 2016. the safekeeping of assets in a large number of countries,
The Depositary has three types of responsibilities: monitoring enabling the UCITS to achieve their investment objectives,
the compliance of the decisions of the Management Company BNP Paribas Securities Services SCA has appointed sub-
(as defined in Article 22.3 of the Directive), monitoring of cash custodians in countries where BNP Paribas Securities SCA
flows of the UCITS (as defined in Article 22.4), and custody of services would have no local presence. These entities are
the UCITS' assets (as defined in Article 22.5). All of these listed on the following website:
responsibilities are set out in a written contract between the http://securities.bnpparibas.com/solutions/asset-fund-
Management Company, MANDARINE GESTION, and the services/depositary-bank-and-trustee-serv.html
Depositary, BNP PARIBAS SECURITIES SERVICES. The process of appointment and supervision of the sub-
custodians is carried out in accordance with the highest
quality standards, including the management of potential
UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022 7Mandarine Equity Income - Prospectus
conflicts of interest that may arise in connection with these
appointments.
II.5 CENTRALISING AGENT
Centralising agent for subscription and redemption
Up-to-date information on the above-mentioned points will be orders by delegation:
sent to the investor upon request.
BNP PARIBAS SECURITIES SERVICES
The establishment responsible for maintaining the Issuer Partnership limited by shares registered with the Registre du
account and the unit or share registers is BNP PARIBAS Commerce et des Sociétés (Trade and Companies Register)
SECURITIES SERVICES, the contact details of which are in Paris under No 552 108 011.
provided below. Credit establishment approved by the Autorité de Contrôle
Prudentiel et de Résolution.
Registered office: 3, Rue d’Antin - 75002 PARIS
II.3 STATUTORY AUDITOR Postal address: Grands Moulins de Pantin - 9, Rue du
Cabinet Mazars Débarcadère – 93500 PANTIN CEDEX
Represented by Mr Gilles Dunand-Roux
61, rue Henri Regnault – 92075 La Défense Cedex
II.6 APPOINTED
II.4 MARKETER REPRESENTATIVES
Administrative management and accounting:
MANDARINE GESTION
40, Avenue George V - 75008 PARIS
BNP PARIBAS SECURITIES SERVICES
The Fund is registered with Euroclear France and its units Petits Moulins de Pantin - 9, Rue du Débarcadère - 93761
may be subscribed or redeemed through financial PANTIN CEDEX
intermediaries who are not known to the management The delegation agreement covers the accounting
company. management, including accounting updates, the net asset
value calculation, the preparation and presentation of the file
required for the audit carried out by the statutory auditor, and
the keeping of accounting records.
8 UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022Mandarine Equity Income - Prospectus
III. OPERATING AND MANAGEMENT PROCEDURES
III.1. GENERAL III.1.3 Information on the tax system
The Fund itself is not subject to taxation. However, unitholders
CHARACTERISTICS may incur taxation on any revenue distributed by the Fund,
III.1.1 Features of the units or shares where paid, or when selling the securities.
The tax regime applicable to the amounts distributed by the
- ISIN codes:
Fund or any realised or unrealised capital gains or losses of
M units : FR0010147728
the Fund depend on the tax provisions applicable to the
I units : FR0010396374
investor's particular situation and their tax residency. Thus,
R units : FR0010396382
certain revenue distributed in France by the Fund to non-
F units : FR0013300795
residents is liable to withholding tax in this state.
F(d) units : FR0013300803
R(d) units : FR0013300811
Abroad (in the fund’s investment countries), capital gains
I(d) units : FR0013300829
realised on the sale of foreign transferable securities and
L units : FR0013300837
income from foreign sources earned by the fund as part of its
L(d) units : FR0014001681
management may, where applicable, be subject to taxation
- Type of rights attached to the unit category: each unitholder (usually in the form of a withholding tax). Taxation abroad
has a right of co-ownership of the Fund assets in proportion may, in certain limited cases, be reduced or nullified in the
to the number of units held. event of applicable tax agreements.
- Entry in a register or specification of the methods for
managing liabilities: liabilities are managed by BNP With regards to unitholders of the Fund:
PARIBAS SECURITIES SERVICES.
• Unitholders residing in France: Capital gains or losses
- The Fund is registered with Euroclear France. realised by the Fund, revenue distributed by the Fund and
capital gains or losses recorded by the unitholder are
- Voting rights: no voting rights are attached to units, as subject to current tax legislation.
decisions are taken by the Management Company.
However, information on changes in the operation of the • Unitholders residing outside of France: Subject to tax
Fund is provided to the unitholders either personally, agreements, the taxation provided for in Article 150-0 A of
through the press or by any other means in accordance with the CGI is not applicable to capital gains earned on the
the regulations. redemption or sale of units of the Fund by persons not
fiscally resident in France under Article 4 B of the CGI or
- Form of units: all units are in bearer form. The Fund will be whose registered office is located outside of France, on
registered with Euroclear France. condition that such persons have not held, directly or
- Decimalisation of ✔ YES ✗ NO indirectly, more than 25% of the units at any time during the
the units: five years preceding the redemption or sale of their units
(CGI Article 244a C).
- Number of ✗ tenths ✗ hundredths ✗ thousan ✔ ten
decimal places: dths thous
Unitholders residing outside France shall be subject to the
andth
provisions of tax legislation in effect in their own country of
s
residence.
III.1.2 Closing date Investors benefiting from the Fund as part of a life insurance
The last trading day in December on the Paris stock contract shall be subject to taxation applicable to life
exchange. insurance contracts.
The financial year that started on 1 July 2017 will be a Tax system in Germany:
shortened financial year that will close on 31 December 2017. The Fund is classed as an “Aktienfonds” under German tax
law (§2 Abs. 6 InvStG); the investment in
"Kapitalbeteiligungen" in accordance with §2 Abs. 8 InvStG
UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022 9Mandarine Equity Income - Prospectus
will continuously exceed 50% of net assets. investing in sustainable investments that are aligned with the
criteria of the Taxonomy Regulation.
NB: depending on your tax system, any capital gains
and income associated with holding units in the Fund
III.1.6 Benchmark index
could be subject to taxation. We recommend that you
The performances are compared to the performance of the
consult your usual tax adviser for information on this
STOXX® Europe 600 Net Return EUR. This index is the
matter.
global benchmark for the European markets. It is composed of
600 securities selected from the 16 euro area countries as
✗ Eligible for PEA ✗ DSK ✗ Madelin law ✗ PERP
well as the UK, Denmark, Switzerland, Norway and Sweden.
(equity savings contract
Codes: ISIN: EU0009658210 Reuters: STOXXR; Bloomberg:
plan)
SXXR Index; the benchmark index is denominated in euros.
The performance of the STOXX® Europe 600 EUR Net
The Fund's units are capitalisation/distribution units, with the
Return benchmark includes dividends from the equities that
exception of I, R, L and F units, which are capitalisation units.
make up the benchmark: www.stoxx.com.
III.2. SPECIAL PROVISIONS Information pursuant to Q&A ESMA 34-43-362 "Actively
Managed Fund"
III.1.4 ISIN codes The Fund is actively managed.
M units : FR0010147728 However, the Fund's objective is not to reproduce the
I units : FR0010396374 performance of this index in any manner. The Fund's
R units : FR0010396382 investments are made on the basis of criteria that could result
F units : FR0013300795 in significant variations compared to the performance of this
F(d) units : FR0013300803 index. Investments in companies are made on the basis of
R(d) units : FR0013300811 weightings that are not based on the relative weighting of
I(d) units : FR0013300829 each company in the Index.
L units : FR0013300837
L(d) units : FR0014001681 Information concerning the benchmark indicator used
by the Fund carried out in accordance with the
provisions of EU Regulation 2016/1011.
UCITS of UCITS or AIF (meeting the criteria of Article R.214-
13 of the Monetary and Financial Code): less than 10% of
In accordance with Article 52 of Regulation (EU) 2016/1011 of
assets.
the European Parliament and of the Council of 8 June 2016
on indices used as benchmarks in financial instruments and
III.1.5 Management objective financial contracts or to measure the performance of
The objective of the Fund, managed in a discretionary investment funds and amending Directives 2008/45/EU and
manner, is to outperform its benchmark index – the STOXX® 2014/17/EU and Regulation (EU) No 596/2014 (hereinafter
Europe 600 Net Return EUR index (dividends reinvested) – referred to as the “Benchmark Regulation” or “BMR”), as the
over the recommended five-year investment period. Management Company may refer to benchmark indices
under the BMR regulation, it is considered a “User” of
The Fund takes sustainability risks and ESG characteristics benchmark references:
into account in its selection process. In this regard, the Fund • to ensure that the benchmark indices it uses within the
promotes environmental or social characteristics within the European Union are supplied by administrators that are
meaning of Article 8 of the SFDR Regulation. The Fund is legally authorised or registered with the European Union as
subject to a sustainability risk as defined in the risk profile of benchmark index Administrators, including the
the prospectus. Administrator (Article 29); or to ensure that those originating
Although the Fund may invest in environmentally sustainable from third countries respect the principle of equivalence
economic activities within the meaning of Regulation (EU) and the regulatory requirements (Article 30-33);
2020/852 of the European Parliament and of the Council of 18 • to establish a suitable monitoring procedure for benchmark
June 2020 on the establishment of a framework to promote indices allowing it to substitute a new index in the event that
sustainable investment and amending Regulation (EU) 2019/ one or more of the benchmark indices, including that of the
2088 ("Taxonomy Regulation"), it does not currently have a index provided by the Administrator, that it uses should be
specific environmental objective and does not commit to substantially modified or cease to be published (Article 28).
10 UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022Mandarine Equity Income - Prospectus
volatility of the Index, Tracking Error, Sharp ratio, information
On the date of the latest update to this Prospectus, which is ratio, etc.).
the date appearing on the first page, the Administrator has
obtained a registration under Article 32 and is therefore listed
III.1.8 Investment strategy
in the publication of administrators and publication of
benchmarks maintained by ESMA (hereinafter referred to as
the “Benchmark Register - List of EU benchmark III.1.8.1. Strategies used
administrators and third country benchmarks”).
The Fund's investment strategy consists in selecting
In accordance with Article 28.2 of the BMR Regulation, the securities that offer returns equivalent to or higher than market
Management Company has a monitoring procedure for the returns and securities with significant potential in terms of
benchmark indices used describing the measures to dividend growth.
implement in the case of substantial modifications made to an
index or in the event that this index is no longer available. The selection of securities is initially carried out using
quantitative criteria: securities are filtered from the universe of
Information concerning the benchmark indicator used European equities using defined ratios such as yield (dividend
by the Fund carried out in accordance with the divided by the share price), historical dividend growth, future
provisions of EU Regulation 2019/2088, the “Disclosure dividend growth, pay-out (share of the profit distributed to
Regulation” shareholders), financial leverage (net debt/EBITDA, net debt
The attention of unitholders is drawn to the fact that the Index ratio), etc. This approach makes it possible to determine the
does not take into account environmental, social or investment universe of the portfolio.
governance issues. The index is not an “EU Paris-Aligned and
Climate Transition-Benchmark”. Qualitative analysis is subsequently carried out for each
company in the investment universe. Each security, without
disregarding the sectoral and economic climate, is therefore
III.1.7 Information to be subject to an in-depth analysis to enable the manager to
communicated to UCI investors assess its valuation potential, the quality of management, the
company’s competitive position, its capital position, the
on the management style creation of social and societal value, etc. Within this universe,
the manager will then select securities with high net returns
In accordance with Commission Regulation (EU) No 583/2010 (net dividend per share/share price) and securities with a
(“UCITS regulation”), as specified in particular by the answer strong dividend growth potential.
to question 8 of section II of the ESMA Q&A relating thereto The analysis will also cover the company's distribution policy
and the “Details of the information to be transmitted to and the durability of the dividend in relation to the company's
investors of UCIs referring to a benchmark index” published financial structure and its cash generation.
by the AMF (October 2019 version), it is specified that the The Fund management is discretionary and based on
Fund's strategy is an active strategy, i.e. the management convictions. It allows for a high degree of autonomy in the
objective is in no way to replicate the performance of any choice of investments and allows the portfolio to be focused
index. on a limited number of securities. Sectoral and geographical
distribution may change at any time on a discretionary basis,
In addition, although the Fund is managed – for comparison owing to forecast earning prospects.
purposes only – with reference to the CAC All Tradable NR
index, it is not subject to any management constraint aimed at The Fund does not use the exemption ratios stated in Article
significantly limiting the difference it can have with this index, R.214-22 of the Monetary and Financial Code.
neither in terms of portfolio composition (investment universe,
sector allocation), nor in terms of deviation of the Fund's
III.1.8.2. Assets used:
performance compared to the index (Tracking Error).
In order to allow the Unitholders to assess how the Fund is
III.1.8.2.1. Shares:
actively managed in relation to its benchmark indicator,
holders may refer to the information as contained in the The Fund may invest up to 100% of its assets in European
monthly reports of the fund and the annual report and equities.
indicators of ex-post measurement (volatility of the Fund,
The Manager may invest up to 20% of its net assets in
qualified small capitalisation issuers
UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022 11Mandarine Equity Income - Prospectus
AMF classification of UCITS or alternative investment funds:
The manager may invest up to 10% of the assets: all AMF classifications as described in the AMF instructions
- on international equity markets, excluding those in Europe; specifying the operating regulations of the UCITS and AIFs
- in emerging issuers.
The Fund may invest in trackers, listed index-linked funds and
III.1.8.2.2. Debt securities and money market Exchange Traded Funds on an ad-hoc basis.
instruments
III.1.8.2.4. Derivatives
The Fund may invest up to a maximum of 25% in debt
securities and money market instruments. The Fund may invest in financial futures (traded on regulated
and organised markets, in France and abroad and/or OTC). In
As part of the cash management of the Fund, the Fund this context, the Fund may take positions to offset fluctuations
Manager may use bonds, convertible bonds, debt securities, in the market.
deposits and money market instruments.
The distribution of private/public debt is not determined in The Fund transactions may therefore be:
advance, as it will be based on the market opportunities. - to hedge equity risk in the portfolio;
Similarly, the Fund Manager will determine the duration and - or exposing the portfolio to industrial sectors, shares,
the sensitivity of bonds held in the portfolio based on the currencies or market indices through the use of instruments
management objectives and market opportunities. Issuers of such as futures or options contracts.
securities in the portfolio must have an “Investment Grade”
rating from at least one recognised agency (e.g. at least BBB- To a lesser extent, transactions may be entered into on the
from S&P, Moody's or Fitch), or their creditworthiness OTC markets as part of treasury management or currency
estimated by the management company must correspond to transactions.
this level (failing that, an equivalent short-term rating issued
by one of the three aforementioned agencies). The Fund may use up to a limit of 100% of the assets on
The Fund reserves the right to invest up to 25% in French derivative instruments. The portfolio's exposure is not
money market instruments, as well as in securities issued on intended to exceed 100%; however, for significant
foreign money markets denominated in euros, traded on subscriptions or redemptions or major market fluctuations, the
regulated and non-regulated markets, in particular: Fund may be temporarily exposed beyond 100%.
◦ Euro Commercial Papers; All transactions are carried out within the global limit of the off
◦ Euro Medium Term Notes with a short maturity indexed on balance sheet commitment of one times the Fund's assets.
short-term references;
◦ Certificates of deposit; III.1.8.2.5. Embedded derivatives (warrants, credit
◦ Commercial Paper; linked notes, EMTNs, subscription
◦ Treasury Bonds. warrants, etc.)
III.1.8.2.3. UCITS, AIF, investment funds and Nature of instruments used: Essentially, warrants,
trackers or Exchange Traded Funds subscription warrants, and all types of bonds to which a
(ETF) conversion or subscription right is attached. In particular, the
Fund may invest in securities with exposure to shares
In order to manage the cash flow or gain access to markets or (convertible bonds, exchangeable bonds or equity notes).
specific management styles (sectoral, geographical, etc.), the
Fund may invest up to 10% of its net assets in UCITS/AIFs. Strategy for using embedded derivatives to achieve the
The Fund may invest in UCITS managed by Mandarine management objective: Transactions involving embedded
Gestion. derivatives are of the same nature as those for derivative
Investments will be made within the regulatory limits in: instruments. The use of embedded derivatives is subject to
• French or foreign UCITS (UCITS); their potential benefits in terms of cost/efficiency or liquidity.
• alternative investment funds (AIF) meeting the criteria set The Fund may use up to a limit of 100% of the assets on
out in Article R. 214-13 of the Monetary and Financial Code. embedded derivatives.
III.1.8.2.6. Deposits
12 UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022Mandarine Equity Income - Prospectus
The Fund may make deposits with a maximum term of 12 in the opposite direction of interest rates. This risk arises from
months with one or more credit institutions. The aim of these the fact that, in general, the price of debt securities and bonds
deposits is to contribute to the cash holdings. Deposits falls when interest rates rise.
denominated in euros or other currencies which adhere to the
four conditions of the Monetary and Financial Code can Credit risk:
account for up to 100% of assets. Credit risk is the risk that the issuer cannot meet its
commitments. Credit risk is limited to debt securities and
III.1.8.2.7. Cash loans money-market instruments, which may not make up more
than a maximum of 25% of assets. Investors are reminded
In the course of normal business, the Fund may occasionally that this risk may result in a decrease in the Fund's net asset
find itself in debt and may make use of cash loans in this case, value.
up to a limit of 10% of its assets.
III.1.8.2.8. Temporary purchases and sales of Discretionary management risks:
securities The discretionary management style applied by the Fund is
based on the selection of securities and on the expectations
Not applicable of the different markets. There is a risk that the Fund may not
be invested in the best-performing securities at all times. As a
result, the Fund's performance may be lower than the
III.1.8.3. Risk profile investment objective. Furthermore, the net asset value of the
Fund may decline. Performance largely depends on the Fund
Your money will primarily be invested in the financial Manager's ability to anticipate market movements.
instruments selected by the Management Company. These
instruments will be subject to market trends. . The list of risk Political and exceptional risks:
factors set out below is not exhaustive. These are any risks associated with a political or geopolitical
situation, a decision or lack of decision by the political
The investor is primarily exposed to the following risks: authorities or regional, national, transnational or supranational
administrative authorities: nationalisation without sufficient
Capital risk: compensation, embargoes, protectionist measures,
Investors should be aware that the performance of the Fund secessionist movements, exclusion of certain markets,
may not be in line with its objectives and, because the Fund is discriminatory taxation, resulting in lasting damage to public
not capital protected or guaranteed, investors may not recover order and economic stability, etc. They also include the risks
the full amount of their invested capital. of civil or foreign war (whether declared or not), mines and all
means of warfare, whether or not related to the disintegration,
Equity market risk: fission or fusion of nuclei of light atoms, piracy, capture,
The Fund is exposed to one or more equity markets that could capture or detention by any government or authority, riots,
experience substantial fluctuations. Equity risk corresponds popular movements, strikes, lockouts, acts of sabotage or
to a decline on the equity markets. As the Fund is exposed to terrorism.
equities, the net asset value may decline significantly. If the
equity markets fall, the value of the portfolio may decline. When such intrinsically unpredictable events occur, there can
be very significant financial consequences.
Exchange-rate risk:
This is the risk that fluctuations in foreign currencies could Sustainability risk:
affect the value of securities held in the portfolio. The Fund An environmental, social or governance event or situation
may hold, either directly or via UCITS or AIF, securities which, if it occurs, could have a material adverse effect –
denominated in a currency other than the Fund's designated actual or potential – on the value of the investment. . The
currency. Therefore, fluctuations in exchange rates could occurrence of such an event or situation may also lead to a
result in a lower net asset value. The exchange risk may be modification of the mutual fund's investment strategy,
hedged through derivatives. including the exclusion of the securities of certain issuers.
More specifically, the negative effects of sustainability risks
Interest-rate risk: can affect issuers through a series of mechanisms, including:
Given its management orientation, the Fund may be exposed (1) lower income; (2) higher costs; (3) damage or depreciation
to interest rate risk. Interest rate risk is represented by in the value of assets; (4) higher capital cost; and (5)
fluctuations in the yield curve. The interest rate markets move regulatory fines or risks. Due to the nature of sustainability
UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022 13Mandarine Equity Income - Prospectus
risks and specific topics such as climate change, the To a lesser extent, they are also exposed to the following
likelihood of sustainability risks impacting financial product risks:
returns is likely to increase in the longer term.
Emerging markets risk:
Risks associated with consideration of sustainability The market practices and monitoring measures in the
risk: emerging markets may deviate from the standards prevailing
Currently, there is no universally recognised framework or list on the large international markets: information on certain
of factors that must be considered for ensuring that securities may be incomplete and liquidity may be lower. The
investments are sustainable, and the legal and regulatory performance of these securities may therefore be volatile. If
framework governing sustainable finance is still under the securities of the emerging markets fall, the net asset value
development. of the Fund may fall.
The application of ESG criteria to the investment process as
part of the inclusion of sustainability risks may exclude Counterparty risk:
securities of certain issuers for non-financial reasons, which The Fund is exposed to the counterparty risk that results from
may involve giving up certain market opportunities available to the use of financial futures. Contracts for these financial
other funds that do not use ESG or sustainability criteria. The instruments may be concluded with one or more credit
focus of the fund manager on issuers of securities which have institution(s) that is/are not able to honour their commitments
sustainable features may affect the investment performance under these instruments. Investors are reminded that this risk
of a Sustainable Fund and lead to a return which, at times, will may result in a decrease in the Fund's net asset value.
be lower than that of similar funds that have no sustainable
approach or which would apply non-financial criteria. The Risks linked to investments in small cap securities:
sustainable or non-financial characteristics used in a fund's Given its management orientation, the Fund may be exposed
investment policy may prevent it from buying certain securities to small cap securities, which may carry liquidity risk owing to
which, in other circumstances, would offer advantages, and/ their specific characteristics. Due to the restricted nature of
or from selling securities because of their sustainable the market, the performance of such securities is more
characteristics despite the harm that could thereby result. In pronounced and may rise or fall sharply. This may result in an
the short term, a focus on securities from issuers with increase in the volatility of the net asset value.
sustainable characteristics could positively or negatively affect
the performance of the Fund's investments compared to III.1.8.3.1. Target investors and typical investor
similar funds without this focus. In the long term, this approach profile
should have a favourable effect, but no guarantee is given in
this regard. Target investors
The ESG information available, whether it comes from third-
party data providers or the issuers themselves, may be ▪ With regard to M units:
incomplete, inaccurate, patchy, or unavailable, which can All subscribers, in particular Suravenir.
have a negative impact on a portfolio that relies on this data to
assess the appropriate inclusion or exclusion of a security. In ▪ With regard to I, I(d) and L units:
addition, it is possible that a security or a stock could be All subscribers, in particular Institutional investors.
incorrectly valued.
The sustainable finance approach will have to evolve and ▪ With regard to L(d) units
develop over time, both due to the refinement of investment Exclusively for legal persons subject to German legal and tax
decision-making processes aimed at taking ESG factors and rules, especially those relating to the provisions of Section 5
risks into account, and due to legal and regulatory Investmentsteuergesesetz and also legal persons governed
developments. by Austrian law.
No statement has been made and no warranty has been given
regarding the impartiality, accuracy, completeness or ▪ With regard to R, F, F(d) and R(d) units:
coverage of the sustainable or extra-financial features. All subscribers. For F and F(d) units: units reserved for all
investors and, solely as part of subscription or distribution
However, it should be noted that, although sustainability risks within the European Union, those who are:
are considered systematically, no single aspect (including (a) Financial intermediaries who, owing to regulations
extra-financial ratings) could prevent the Fund Manager from applicable to their situation, are not authorised to receive or
making an investment as investment decisions remain hold any non-monetary fees or benefits; or
discretionary. (b) Subscribers subscribing to portfolio management services
on behalf of third parties (management by mandate) and/or
14 UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022Mandarine Equity Income - Prospectus
independently provided investment consulting within the
meaning of Directive 2014/65/EU of the European Parliament • The Fund's management company has the authority to
and of the Council of 15 May 2014 on markets in financial impose restrictions (i) on the ownership of Units for a "US
instruments within the European Union (the MiFID II Person" and thus proceed with the compulsory redemption of
Directive); the Units held, or (ii) on the transfer of Units to a "US Person".
(c) Distributors subscribing in the context of investment advice This authority also extends to any person (a) who appears,
not considered to be independent within the meaning of directly or indirectly, to be in violation of the laws and
Directive MIF2, on the basis of a contract with their customer regulations of any country or any government authority, or (b)
and where such a distributor neither receives nor holds on to who could, in the Fund's management company's opinion,
any commission or other non-monetary benefit under cause the Fund to suffer damage that it would not otherwise
Directive MIF2. have endured or suffered.
• Investor profile • The offer of Units has not been authorised or rejected by the
The Fund is open to any investor seeking a dynamic return SEC, the specialised commission of a US State or any other
who agrees to be exposed to significant equity risk. The US regulatory body, no more than the aforementioned
appropriate amount to be invested in the Fund depends on authorities have delivered a verdict or sanctioned the merits of
each investor's personal situation. To determine this, this offer, or the accuracy or adequate nature of the
investors must take into account their personal assets, their documents relating to this offer. Any assertion to this effect is
current and future needs, investment horizon, and also their against the law. All Unitholders must inform the Fund
willingness to take risks or opt instead for a more cautious immediately in the event that they become a "US Person". Any
investment. Investors are also strongly advised to diversify unitholder who becomes a U.S. Person will no longer be
their investments in order to avoid exclusive exposure to the authorised to acquire new Units and they may be requested to
risks of this Fund. give up their Units at any time to the benefit of persons who
do not have
Special warning "US Person" US SEC Regulation S (Part "U.S. Person" status. The Fund's management company
230 – 17 CFR 2330.903)/US Investors: reserves the right to proceed with the compulsory redemption
These Fund units have not been registered under the US of any Unit held, directly or indirectly, by a "US Person", or if
Securities Act of 1933. Consequently, they may not be offered the ownership of Units by any person whatsoever is against
or sold, directly or indirectly, in the United States or on behalf the law or the interests of the Fund.
of or to the benefit of a “US person” as defined by the US
“Regulation S”. Furthermore, the units of this fund also cannot • Recommended investment period: over five years.
be offered or sold, directly or indirectly, to "US persons" and/
or to any entities held by one or more "US persons" as defined III.1.8.4. Methods of determining and
by the US "Foreign Account Tax Compliance Act (FATCA)"
regulation. (The definitions of a “US Person” or an “effective
allocating income
beneficiary” are available at the following address: http:// The Fund's units are capitalisation/distribution units, with the
www.sec.gov/about/laws/secrulesregs.htm and http:// exception of units with “(d)” in their name, which are
www.irs.gov/Businesses/Corporations/Foreign-Account-Tax- distribution units.
Compliance-Act-FATCA). The “M” unit is a capitalisation and/or distribution unit.
The management company reserves the right to capitalise
• Any resale or transfer of units to the United States of and/or distribute net income, in full or in part, or to it carry
America or to a "US Person" can constitute a violation of US forward. Allocation of capital gains realised: The management
law and requires prior written consent from the mutual fund's company reserves the right to opt for capitalisation and/or
management company. Any persons wishing to acquire or distribution. Where applicable, net capital gains may, at the
subscribe to the Units will have to certify in writing that they discretion of the management company, be wholly or partly
are not "U.S. Persons". distributed annually or carried forward.
III.1.8.5. Characteristics of units
Currency Minimum
Code Distribution of Minimum initial Initial net asset Decimalis
denomin Target investors subsequent
ISIN income subscription (1) value ation
ation subscription
All subscribers,
M Capitalisation/ EUR 1/10000th
FR0010147728 EUR and in particular EUR 100 1/10000
units Distribution 40,000,000 of a unit
to Suravenir
UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022 15Mandarine Equity Income - Prospectus
Currency Minimum
Code Distribution of Minimum initial Initial net asset Decimalis
denomin Target investors subsequent
ISIN income subscription (1) value ation
ation subscription
All subscribers
I EUR 1/10000th
FR0010396374 Capitalisation EUR in particular Institutional EUR 100 1/10000
I 1,000,000 of a unit
investors
R EUR 1/10000th
FR0010396382 Capitalisation EUR All subscribers EUR 100 1/10000
units 50 of a unit
EUR 1/10000th
F units FR0013300795 Capitalisation EUR All subscribers (2) EUR 100 1/10000
50 of a unit
F(d) Capitalisation/ EUR 1/10000th
FR0013300803 EUR All subscribers (2) EUR 100 1/10000
units Distribution 50 of a unit
R(d) Capitalisation/ EUR 1/10000th
FR0013300811 EUR All subscribers EUR 100 1/10000
units Distribution 50 of a unit
All subscribers
I(d) Capitalisation/ EUR 1/10000th
FR0013300829 EUR in particular Institutional EUR 100 1/10000
units Distribution 1,000,000 of a unit
investors
All subscribers
EUR 1/10000th
L units FR0013300837 Capitalisation EUR in particular Institutional EUR 100 1/10000
40,000,000 of a unit
investors
L(d) FR0014001681 Distribution (3) EUR Institutions governed by EUR 1/10000th EUR 100
units German and Austrian 40,000,000 of a unit 1/10000
law (4)
(1) Excluding the management company, which may only take Subscription and redemption requests are processed on
out one unit. every valuation day until 1:00 p.m. Paris time (cut-off time) via
(2) For F and F(d) units: units reserved for all investors and, the centralising agent and are executed on the basis of the
solely as part of subscription or distribution within the next net asset value, i.e. at an unknown price. Payments
European Union, those who are: relating thereto are made on the second trading day following
(a) Financial intermediaries who, owing to regulations the net asset value date.
applicable to their situation, are not authorised to receive or
hold any non-monetary fees or benefits; or It is possible to invest in whole and/or fractions of units;
(b) Subscribers subscribing to portfolio management services redemptions are only made in quantities of units (ten
on behalf of third parties (management by mandate) and/or thousandths).
independently provided investment consulting within the Fund unit subscriptions and redemptions can be addressed
meaning of Directive 2014/65/EU of the European Parliament to:
and of the Council of 15 May 2014 on markets in financial
instruments within the European Union (the MiFID II • The centralising agent by delegation:
Directive);
(c) Distributors subscribing in the context of investment advice BNP PARIBAS SECURITIES SERVICES
not considered to be independent within the meaning of Registered office: 3 Rue d’Antin – 75002 PARIS.
Directive MIF2, on the basis of a contract with their customer Postal address: Grands Moulins de Paris - 9, Rue du
and where such a distributor neither receives nor holds on to Débarcadère – 93500 PANTIN Cedex.
any commission or other non-monetary benefit under Subscriptions and redemptions are processed at 1 p.m., Paris
Directive MIF2. time (cut-off time).
(3) Distribution frequency of L(d) units: quarterly Date and frequency of calculation of the net asset value: daily,
(4) Legal persons subject to German legal and tax rules, for all units. The net asset value is calculated every business
especially those relating to the provisions of § 5 trading day of the French financial markets (Euronext Paris
Investmentsteuergesesetz and also legal persons governed S.A. Official Calendar).
by Austrian law.
The net asset value of the Fund is available on request from:
III.1.8.6. Subscription and redemption - MANDARINE GESTION – 40, Avenue George V – 75008
Paris;
methods - or at the following e-mail address:
serviceclient@mandarine-gestion.com.
16 UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022Mandarine Equity Income - Prospectus
Subscription and redemption transactions resulting from a
The net asset value is also available on the website: order transmitted after the time mentioned in the prospectus
www.mandarine-gestion.com. (late trading) are prohibited.
Investors wishing to subscribe to units and unitholders wishing Pursuant to Article L. 214-8-7 of the Monetary and Financial
to redeem units should contact their account holding Code, both the redemption by the Fund of its units and the
institution regarding the cut-off time for processing their issue of new units may be suspended temporarily by the
subscription or redemption request. The latter may be before Management Company if required by exceptional
the processing cut-off time mentioned above. circumstances and if this is in the interests of the unitholders.
Orders are executed in accordance with the table below:
D (working day) D (working day) D: day on which
in Paris in Paris the NAV is D+1 trading day D+2 trading day D+2 trading day
(Valuation Day) (Valuation Day) established
Processing before 1pm Centralisation Publication of the net
Execution of the order Payment of Payment of
for subscription 1pm for redemption asset value (dated
on D at the latest subscriptions redemptions
orders1 orders1
Valuation Day)
1
Excluding any specific delay agreed with your financial institution.
III.1.8.7. Fees and commissions the redemption price. The fees paid to the Fund are used to
offset the costs incurred by the Fund for investing or divesting
The subscription and redemption fees are added to the assets. Unallocated fees are made available to the marketing
subscription price paid by the investor or are deducted from networks.
Fees charged to the investor levied on
Base Rate/Scale All units
subscriptions and redemptions
Subscription fee not paid to the Fund 2% maximum
Subscription fee paid to the Fund None
Net asset value X number of units
Redemption fee not paid to the Fund None
Redemption fee paid to the Fund None
Exemption from subscription fees for M units: Subscriptions made by Suravenir and all associated entities will be exempt from
subscription fees.
Operating and management fees:
These fees cover all costs charged directly to the Fund, apart from transaction fees. Transaction fees include intermediation fees
(brokerage, stock market tax, etc.) and any turnover fees (see table below “Fees charged to the Fund”).
In addition to operating and management fees, there may also be:
- outperformance fees. These are paid to the management company when the fund exceeds its objectives. They are therefore
invoiced to the Fund;
- turnover fees charged to the Fund.
Rate/Scale Rate/ Rate/ Rate/ Rate/Scale Rate/
Fees invoiced to the Fund Base
M units Scale Scale Scale F, F(d) units Scale
UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022 17Mandarine Equity Income - Prospectus
I, I(d) R(d) L(d)
R units
units units units
Maximum financial management
fees 1.95%
0.60% 0.90% 2.20% 1.10% 0.75%
1 External administrative costs Net assets including all
including all including all including all including all including all
to the Management Company taxes
taxes taxes taxes taxes taxes
maximum
Maximum indirect fees
2 (Commissions and management Net assets None*
fees)
Maximum turnover fees paid to the Transaction
3 0 to 0.18% incl. tax on the gross amount of the deal
Management Company amount
Maximum turnover fees paid to the Fixed fee per
€0 to €115 incl. tax
depositary/custodian (2) transaction
4 Outperformance fee (1) Net assets 15% of the outperformance over the STOXX® Europe 600 NR 1) N/A
(*) UCITS of UCITS or AIF: less than 10% This period is fixed at five years.
1) From 1st January 2022, the outperformance fee will be Condition of positivity
calculated as follows: A provision cannot be made and a fee can only be collected if
the fund's performance is strictly positive over the year (NAV
the outperformance fee corresponds to a variable charge and greater than the NAV at the start of the year).
is contingent on the Fund achieving a positive performance
over the financial year and outperforming its benchmark over
the observation period. Crystallisation
The crystallisation period, i.e. the frequency with which the
Calculation method accrued performance fee, if any, must be paid to the
The calculation of the amount of the performance fee is based management company, is twelve months.
on a comparison between the performance of the Fund and
that of a notional UCI that achieves the performance of its The initial crystallization period will end on the last day of the
benchmark and has the same subscription and redemption financial year ending 31 December 2022.
pattern as the actual Fund.
Observation period
The outperformance generated by the Fund on a given date is The initial observation period will start with a duration of 12
defined as the difference between the net assets of the Fund months starting at the beginning of 2022.
and the assets of the notional fund on the same date.
At the end of a crystallisation period, one of the following three
Provisioning situations may occur:
Each time the net asset value (NAV) is established, the
performance fee is subject to a provision (of 15% of the - The Fund posts an underperformance over the observation
outperformance above the STOXX® Europe 600 NR index) if period. In this case, no provision is taken, and the observation
the Fund's performance exceeds that of the notional UCI over period is extended by one year, up to a maximum of five
the observation period, or to a reversal of the provision limited years (reference period).
to the existing allocation in case of underperformance. - The Fund posts an outperformance over the observation
period but underperformed negatively over the year. In this
Catching up on underperformance and reference period case, no provision is taken, but a new observation period of
The reference period is the period during which the twelve months shall begin.
performance is measured and compared to that of the - The Fund posts an outperformance over the observation
benchmark index and at the end of which it is possible to reset period and a positive absolute performance over the year. In
the compensation mechanism for the underperformance (or this case, the management company shall receive the
negative performance) passed. provisioned fee (crystallisation) and a new observation period
of twelve months shall begin.
18 UCITS governed by French law covered by Directive 2014/91/EU - UCITS V - January 2022You can also read
