Nikko AM – Nikko AM Shenton Global Property Securities Fund – Introduction of Swing Pricing Policy & Removal from the Central Provident Fund investment Scheme
The fund manager would like to inform you of the following:
“NIKKO AM ASIA INVESTMENT FUNDS – NIKKO AM SHENTON GLOBAL PROPERTY SECURITIES FUND (THE “FUND”) (ISIN : SGD: SG9999004253 / USD: SG9999004261 )
- INTRODUCTION OF SWING PRICING POLICY BY THE FUND
We, Nikko Asset Management Asia Limited as the managers of the Fund (the “Managers”), are writing to you in our capacity as the managers of the Fund to inform you that we will be introducing swing pricing policy in respect of the Fund with effect from 22 April 2021 (or such other date as we may subsequently advise) (the “Effective Date”).
The Funds is single priced and the value of a Fund may fall as a result of amongst others the transaction costs (such as broker commissions, custody transaction costs, stamp duties or sales taxes) incurred in the purchase and/or sale of its underlying investments caused by subscriptions, realisations, switches and/or exchanges of units in the Fund and the spread between the buying and selling prices of such underlying investments. This effect is known as “dilution”.
With effect from the Effective Date, to protect the interest of existing investors, we, in consultation with the trustee, may apply a technique known as “dilution adjustment” or “swing pricing” (“Swing Pricing”) in certain circumstances that we deem appropriate. Swing Pricing involves adjusting the net asset value (“NAV”) per unit of the Fund so that such transaction costs and dealing spread in respect of the underlying investments are, as far as practicable, passed on to the relevant investors who are subscribing, realising, switching and/or exchanging units on a particular dealing day.
The amount of adjustment at any future point in time may vary depending on inter alia market conditions, but will under normal circumstances not exceed 2% of the NAV per unit on the relevant dealing day (the
“Maximum Adjustment”). We reserve the right to apply an adjustment of an amount not exceeding the Maximum Adjustment on the relevant dealing day where we deem appropriate and have the discretion to vary the amount of adjustment up to the Maximum Adjustment, in consultation with the trustee, from time to time without giving notice to the relevant investors.
- Removal from the Central Provident Fund investment Scheme “CPFIS”
With effect from 22 March 2021, the Fund will no longer be included under the CPFIS. The Fund will continue to be available for subscription via cash or supplementary retirement scheme (“SRS”) monies.
For the avoidance of doubt, please note that the current investment objective, focus and approach of the Fund will remain unchanged. However, as the Fund will no longer be included under the CPFIS it will no longer be required to comply with the Central Provident Fund Investment Guidelines with effect from 22 March 2021.
For all holders of units in the Fund (“Units”), you will have the following three options for consideration prior to 22 March 2021:
Option 1 – Stay invested
Option 2 – Switch before 22 March 2021
You may switch your Units to units in any other fund managed by us which is available from the same distributor from whom you purchased your Units from now until 5pm (Singapore time) on 19 March 2021.
We will not impose any switching fee in respect of such switches. However, you should check with your distributor if there are any other fees or charges payable in connection with the switch.
If you had invested in the Fund using CPF ordinary account (“OA”) monies or SRS monies, please note that you may only switch your Units to units in another fund managed by us which is included under the CPFIS for the OA or which is available for investment using SRS monies respectively. Our funds which are included under the CPFIS and that are currently accepting subscriptions using CPF OA monies are as follows:
- Nikko AM Shenton Thrift Fund – SGD Class;
- Nikko AM Shenton Short Term Bond Fund (S$) (a sub-fund of Nikko AM Shenton Short Term Bond Funds) – SGD Class;
- Nikko AM Shenton Japan Fund – SGD Class;
- Nikko AM Shenton Global Opportunities Fund – SGD Class;
- Nikko AM Japan Dividend Equity Fund – SGD Class and SGD Hedged Class.
Option 3 – Realisation before 22 March 2021
You may realise your Units by submitting a duly signed and completed realisation form which may be obtained from the distributor from whom you purchased your Units from now until 5pm (Singapore time) on 19 March 2021. No realisation charge is payable for the realisation of Units. However, you should check with your distributor if there are any applicable charges that may be payable.
If you have invested in the Fund using CPF OA monies or SRS monies, we will not be imposing any charges nor will you be required to bear any CPF agent bank charges (for investments using CPF OA monies) or SRS operator charges (for investments using SRS monies) for Option 2 and Option 3 above from now until 5pm (Singapore time) on 19 March 2021.”
For more details, please refer to the shareholder notification letter.