Trend Following Strategy Fund - D Dati validi a 18/11/2024

Investment objective and policy

The objective of the sub-fund is to maximize the return on the investment on the international equity markets while minimizing the risk of the portfolio.

It will have a high level of diversification and may invest in all types of equities without any restrictions in terms of market capitalization, geographical zones and sectors.

The sub-fund will pursue a “trend following” strategy which consists of exploiting the directionality of the markets by identifying trends through in-depth price analysis. The objective is to take advantage of market developments in different asset classes and on different investment horizons through long and short exposures. In uptrend markets, the Investment Manager will mainly take positions into securities providing long exposures. In downtrend markets, the Investment Manager will protect the sub-fund by refining the portfolio structure (reducing the long exposure by investing into cash and cash equivalent instruments, as well as eligible inverse UCITS/UCIs such as but not limited to Exchange Traded Funds (ETFs). The sub-fund is actively managed and with no reference to a benchmark.

The sub-fund may invest:

• up to 90% of its net assets in equities (directly or indirectly);
• up to 80% in shares or units of other UCIT/UCIs, potentially including eligible leveraged and inverse funds (incl. ETFs)

• up to 20% in debt securities (directly or indirectly); high yield bonds up to 10%;
• up to 20% in eligible instrument which underlying exposure is related to the commodity markets. This will be implemented exclusively through eligible exchange traded commodity securities (ETC);
• under normal market circumstances, the sub-fund will maintain a clear majority of at least 55% of the investments in OCDE denominated currency securities;
• in financial derivative instruments.

Investor profile

The sub-fund is available to all investors who want to participate in the opportunities offered by the international equity markets and are aware that the gearing (or leverage) of investments made in derivatives and the volatility of the prices of derivatives increases the risk of investments made in the shares of the sub-fund to a higher level than in the case of traditional funds investments.

Important information for investors:

The chart and returns shown below refer to past performance and do not constitute a reliable indicator for the future. This sub-fund does not offer a capital guarantee. Before investing, you should always read the PRIIPS-KID and the prospectus.

The change in net asset value and returns indicated are net of management fees, performance fees and any other fees and charges which, as indicated in the prospectus, are borne by the sub-fund. They do not include any subscription fees that may be paid to the distributor, nor any annual custody fees that may be deducted by the custodian, nor any taxes for which the investor may be liable. The returns indicated are calculated in EUR and are based on the sub-fund’s share price or Net Asset Value (NAV).

Source: Pure Capital

The Summary Risk Indicator (SRI), in accordance with the Key Information Document (PRIIPS-KID), allows the level of risk of this product to be assessed in relation to others. It indicates the likelihood of losses in the event of market movements or the sub-fund's inability to pay you. This indicator ranks the risk on a scale of 1 to 7. A low score indicates lower risk but potentially lower return. A higher score will lead to higher risk but potentially higher return.

The level of risk indicated is not a guarantee and may change over time. It also assumes that you keep the product for 5 years. The risk may be significantly different if you sell the product at an early stage and you may get a lower return.

Main risks

• “Equity” risk. The price of an equity security may vary, sometimes due to factors that have nothing to do with the company’s intrinsic value. Equity prices may be affected by economic factors and market conditions, such as a general decrease in share prices or conditions that affect one or more specific issuers, such as changes in earnings forecasts.
• Credit risk. the sub-fund is invested in securities whose credit rating may deteriorate. Such an event would increase the risk an issuer may not be able to meet its commitments. If an issuer's creditworthiness declines, the value of the bonds or derivatives linked to this issuer may fall.
• Liquidity risk. the sub-fund invests in markets that may be affected by a decrease in liquidity. These market conditions may have an impact on the prices at which the manager buys and sells positions.
• Counterparty risk. the sub-fund may suffer losses if a counterparty defaults and is unable to meet its obligations, especially in the case of derivatives traded OTC.
• Discretionary management risk. as the management strategy is based on expected changes in the various markets, there is a risk that the sub-fund might not be invested in the best-performing markets at all times.
• Operational risk. it represents the risk of fault or an error within the different actors implicated in the management, evaluation and/or safekeeping of the assets of the sub-fund.
• Risk impact of financial techniques. the use of complex products such as derivatives and structured products can lead to an amplification of the movements of the securities of the sub-fund.

Details

• Name: PCFS – Trend Following Strategy Fund - D
• ISIN code: LU2338954667
• Bloomberg ticker: PCTFSDE LX Equity
• Type: Undertaking for collective investment in transferable securities (UCITS)
• Legal form: A sub-fund of the “PCFS” Luxembourg SICAV fund
• Inception date: 22/10/2021
• NAV on inception: €100
• Currency: EUR
• Benchmark index: None
• Share type: Distribution
• Term: Indefinite
• Minimum recommended investment horizon: 5 years
• Investor type: Retail investors
• Management company: Pure Capital S.A. – A Luxembourg-based management company
• Investment Advisor: Phado B.V – A Dutch-based company
• Auditor: PwC Luxembourg
• NAV publication: Website, Bloomberg and Beama.be

Fees

• Management fee and other administrative or operating expenses (including Management fee : max. 1.05%) : 3.52%
• Transaction fee: 0.04%
• Performance fee: None
• Subscription fee: Max 1% of which 0,25% shall be deducted and paid in full to the sub-fund
• Redemption fee: Max 0,50% of which 0,25% shall be deducted and paid in full to the sub-fund.

Subscriptions/Redemptions

• Minimum investment requirement: EUR 2.500 (initial subscription) - EUR 500 (further subscriptions)
• Cut-off: 10:00 am (CET)
• NAV valuation frequency: Daily
• Settlement date: Max. (D+3)
• Transfer agent / Depositary: CACEIS Bank Luxembourg Branch

Swing pricing applicable: No

UCITS. Undertakings for Collective Investment in Transferable Securities are investment funds regulated at European Union level.

ETF. Fund that follows the level of share prices on a stock market, and that is also traded on a market: ETFs are a low-cost, flexible way to buy into a wide range of companies.

Commodity. An asset class that includes physical assets of natural origin, used as raw materials in the production of goods. These include metals such as gold, silver, copper, etc. and agricultural raw materials from livestock or crops.

Leverage Funds. Leveraged funds (including ETFs) seek to provide leveraged returns at multiples of the daily return of the underlying benchmark or index they track for a single day excluding fees and other expenses.

Inverse Fund. Inverse funds (including ETFs) seek to provide the opposite of the performance of the index or benchmark they track. Inverse funds are often marketed as a way to profit from, or hedged exposure to, downward moving markets.

Swing Pricing. Anti-dilution technique that allows the Fund to apportion the costs linked to portfolio adjustments caused by subscription/redemption requests on the shareholders whose orders caused the necessity to rebalance the portfolio. It is a liquidity risk tool designed so that remaining shareholders don’t bear all the costs (including dilution) caused by first movers.

High Water Mark. A greater of the Net Asset Value per share as at the launch date and the highest Net Asset Value per share in effect immediately after the launch date or in effect immediately after the end of any subsequent performance period in respect of which a performance fee was payable.

This is an advertising communication. Please refer to the prospectus and the Key Information Documents (PRIIPS-KID), for the UCITS before making any final investment decision. These are available free of charge on request from Pure Capital S.A. (tel: +352 26 39 86) or on its website www.purecapital.eu. The PRIIPS-KID is available in French, Dutch and English. The prospectus, the half-yearly report and the annual report are available in English.

The information presented above does not constitute investment advice and is intended for promotional purposes. It is neither a binding contractual document nor a disclosure document required by law, and is not sufficient for making an investment decision.

Past performance is not a reliable indicator of future results. Performance may vary over time. Investments are subject to market fluctuations and the investor may get back less than is invested. Exposures, allocations and investments may vary in the future in response to different market conditions at Pure Capital's discretion. There can be no guarantee that the investment objectives will be achieved.

The management and custodian fees, as well as any other costs which, in accordance with the prospectus, are charged to the sub-fund, are included in the calculation of the net asset value and, consequently, the performance.

An annual custody fee may be charged by the account holder. They vary from one institution to another. To find out about them, it is necessary to ask it.

The tax treatment of this product depends on the investor's situation. For example, in Belgium, the tax treatment may be the following:

• Withholding tax: Over 10% of this sub-fund’s portfolio is invested in debt securities. The income on these securities is subject to a 30% withholding tax.
• Transactions tax: No tax is charged when purchasing the sub-fund. A 1.32% tax is charged when selling accumulation shares only. This tax is capped at €4,000.

Investors can find out about their rights at https://www.purecapital.eu/legal.html. A summary is available in English and French.

Any complaints or claims can be addressed in writing to the company's head office: Pure Capital S.A., 2 rue d'Arlon, L-8399 Windhof, Grand Duchy of Luxembourg, for the attention of Mr Thierry Léonard, Managing Partner. If the handling of these complaints by the internal service does not satisfy the investor, they may, for Belgium, be submitted to Ombudsfin, Financial Services Ombudsman, North Gate II, Boulevard du Roi Albert II, n° 8 bte. 2, 1000 Brussels, e-mail: ombudsman@ombudsfin.be in writing or via the online complaint form https://www.ombudsfin.be/fr/introduire-une-plainte.

Pure Capital S.A. may decide to cease the marketing of its collective investment schemes in accordance with Article 93a of Directive 2009/65/EC and Article 32a of Directive 2011/61/EU.