REG - LGPS Hedge Fund ICAV - Changes to the Fund

ManAnnouncement

01/05/2020 15:20

RNS Number : 7040L
  
LGPS Hedge Fund ICAV
  
01 May 2020
  
 





COMPANY ANNOUNCEMENT




 


 




For Immediate Release


1 May 2020




 


 




LGPS Hedge Fund ICAV (the "ICAV")




-     Clwyd  Managed Futures and Hedge Fund Strategy (the "Sub-Fund")




 




RE: Changes to Sub-Fund




 
 
The Directors of the ICAV would like to announce the following changes to the Sub-Fund, a sub-fund of the ICAV, effective 1 April 2020 (the "Effective Date"):
 
Changes to Investment Objective and Policy 
 
The investment objective and policy of the Sub-Fund has been amended as follows:
 
Investment Objective
The Sub-Fund's investment objective is to target an absolute return of Sterling Overnight Index Average ("SONIA") + 3% per annum, net of all fees and fund costs and irrespective of the direction of equity and bond markets, measured over a full economic cycle. There can be no assurance that the investment objective of the Sub-Fund will be achieved, and investment results may vary substantially over time. 
Investment Policy 
The investment policy of the Sub-Fund is to achieve its investment objective through: (a) investing in investment funds and/or investment programmes (the "Portfolio Funds") in each case managed by any entity within Man Group, all of which are affiliated with the investment manager of the Sub-Fund (any such manager, an "Affiliate Portfolio Manager"); and/or (b) allocating capital for direct and indirect trading and investment by Affiliate Portfolio Managers as delegates of the investment manager in securities and financial instruments including, but not limited to, equities, investment and non-investment grade bonds, derivative products and other asset classes (such securities and financial instruments may be listed or unlisted. and it is not intended that such securities and financial instruments will have any specific geographic restrictions) ("Direct Investments"; and, together with the Portfolio Funds, collectively, the "Investment Strategies"). 
The Sub-Fund may also hold certain investments that are not Investment Strategies and such investments are referred to herein as the "External Allocation". The External Allocation may consist of: (i) shareholdings in funds of funds which are managed by a manager that is not the Investment Manager or an Affiliate Portfolio Manager; and/or (ii) direct holdings in private companies providing exposure to real estate assets. As at the date of this announcement, it is expected that the External Allocation will comprise approximately 0.3% of net asset value, however, this is not a hard limit and the exposure of the Sub-Fund to the External Allocation may vary over time.
Introduction of Performance Fee
 
From the Effective Date the investment manager shall be entitled to performance fees in respect of services provided to the Sub-Fund.  For each performance fee period, a performance fee of an amount equal to 20% of any net new appreciation, during such performance fee period payable annually (or such shorter period as applicable) in arrears on the performance fee payment date falling at the end of such performance fee period. 
Each performance fee will be calculated at the level of the Sub-Fund. Accordingly, each performance fee will not be calculated on a share-by-share basis, meaning that each share will not be charged a performance fee which equates precisely with that share's performance. This method of calculation means that: (i) a performance fee may be charged in respect of shares that have not appreciated in value; and (ii) shareholders may have differing amounts of capital per share at risk in the Sub-Fund.
Updated Supplement 
Further details relating to the amendments to the investment objective and policy of the Sub-Fund and the introduction of a performance fee by the Sub-Fund are outlined in a supplement dated 1 April 2020.  The supplement is available, upon request, from Ian Cawley (email: Ian.Cawley@man.com).
 




Enquiries:


 




 


 




Matheson


Margot Carty 
Phone: +353 1 232 2000




 
 
 
 
This announcement has been issued through the Companies Announcement Service of Euronext Dublin.


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