Change in the management fee structure of the underlying fund of P89 BNP Paribas Brazil Equity

20 December 2019

We have been notified by BNP Paribas Funds (“The Company”) of the upcoming change to the management fee structure of the underlying fund of P89 BNP Paribas Brazil Equity. This change will take effect from 6 January 2020 (the “Effective Date”).

The Company have confirmed the below, which has been extracted from the shareholder circular of the underlying fund of P89 BNP Paribas Brazil Equity:

It is currently disclosed that the underlying fund would not incur any management fee when the underlying fund invests in units or shares of connected underlying funds which are managed, directly or by delegation, by the same management company or by any other company with which the management company is linked by common management or control, or by a substantial direct or indirect holding.

With effect from the Effective Date, the underlying fund would start to incur such indirect management fee of the connected funds managed by the same company or its affiliates and shareholders may therefore be exposed to fee doubling. The ongoing charges of the underlying fund may be increased but the impact would not be material. The underlying fund would continue not to incur any subscription or redemption fees for the units or shares of the connected funds.

Nevertheless, the underlying fund may not invest in any underlying connected funds which have a management fee exceeding 3% per annum.

There would be no change in other fees level or costs in managing the underlying fund. In addition, the Management Company would bear the costs or expenses incurred in connection with the change. The change would not materially change the features and overall risk profile of the underlying fund. There would be no change in the operations or the manner in which the underlying fund is being managed. There would be no change in the investment objective or policies of the underlying fund as a result of the change. Further, the change would not materially prejudice the existing investors’ rights of interest.

Should you have any questions regarding these changes, please contact International Funds & Investments.