The investment company Erste Asset Management GmbH, Vienna, Republic of Austria,
acting through its branch office
Erste Asset Management GmbH, pobočka Česká republika,
(hereinafter referred to as the “Investment Company”)

hereby informs the unitholders of the mutual fund

FOND ŘÍZENÝCH VÝNOSŮ – otevřený podílový fond FOND ŘÍZENÝCH VÝNOSŮ – open-ended mutual fund

within a deadline of at least 3 months, under Article XII paragraph 4 of its Statute,
of the intent to wind up this mutual fund by merging it with the mutual fund
SPOROINVEST- otevřený podílový fond SPOROINVEST- open-ended mutual fund]

 
 
The investment objective set for the standard mutual fund FOND ŘÍZENÝCH VÝNOSŮ – otevřený podílový fond (hereinafter referred to as the “Merging Mutual Fund”) was to grant unitholders an increase in the value of units (participation certificates) provided that the overall risk profile of the mutual fund minimises the possibility of loss within a horizon of one calendar year. The objective was to be achieved by investments made in the stock component from European stocks and in the conservative bond component from Czech short duration bonds and money market instruments. The weight of stocks and investment instruments bearing the stock risk was not to exceed 25% of the mutual fund’s assets. The average modified duration of the portfolio’s bond component was not to have exceeded 1.5 years.
The reason for the intent to wind up this mutual fund by merger is the low sales of its units (participation certificates) and low value of assets in this mutual fund. The intent to wind up this mutual fund by merging it with the standard mutual fund SPOROINVEST- otevřený podílový fond (hereinafter the “Continuing Mutual Fund”) arises from the fact that this Continuing Mutual Fund falls into the category of very short-term investment bond mutual funds and therefore its investment strategy and risk profile best corresponds to the current investment strategy and risk profile of the Merging Mutual Fund.

If the Czech National Bank permits the merger of the mutual funds, the Investment Company will publish the Czech National Bank’s decision to permit the merger without undue delay once this decision becomes final. The unitholders of the Merging Mutual Fund, which will cease to exist after the merger, will become unitholders of the Continuing Mutual Fund as of the record date of the merger and they will have the units (participation certificates) of the Merging Mutual Fund they hold exchanged for the units (participation certificates) of the Continuing Mutual Fund, retail class CZK C (ISIN CZ0008472271). The Investment Company expects that the record date of the merger could be in November 2023 at the earliest, once the Czech National Bank’s decision to permit the merger is published and after the date that this decision becomes final. The Investment Company further expects that the units (participation certificates) of the Merging Mutual Fund will stop being issued and redeemed 5 working days prior to the record date of the merger. Until such time the unitholders of the Merging Mutual Fund, which will cease to exist on the merger date, will retain the right to redeem units (participation certificates) without deduction. It is expected that the Continuing Mutual Fund will suspend the issue and redemption of units (participation certificates) on the merger date and the following working day.

The winding up of the Merging Mutual Fund and related acquisition of the units(participation certificates) of the Continuing Mutual Fund will not interrupt the time test for the exemption of income from the sale of units from income tax which could be applied to natural persons domiciled for tax in the Czech Republic who do not have units (participation certificates) included in business assets (for more see Section 4 (1) (x) of Act No. 586/1992 Coll., on Income Taxes).

We recommend that unitholders follow notifications that will be published at https://www.erste-am.cz and at branches of Česká spořitelna, a. s. to obtain continuous and specific information about the progress of the merger process, particularly information about the Czech National Bank’s permission for the intended merger. Unitholders can also become acquainted at https://www.erste-am.cz with the Statute and with the key information documents for investors (PRIIPs KID) of the intended Continuing Mutual Fund.
 
 
 
Prague, 4 August 2023