„INVL Emerging Europe Bond Fund“, a subfund of INVL Asset Management, a subsidiary of Invalda INVL, will be managed from Luxembourg - Seite 2

The BEO management fee is being reduced from 1 per cent to 0.45 per cent. As the LUX management fee is 0.55 per cent, thus the total size of fees for investment management will remain unchanged for BEO investors.

Although no contribution or redemption fees may be applied to BEO investments in the LUX subfund, it is envisaged that due to BEO’s operating expenses, BEO’s total costs will be similar to their current size.

Due to the close relationship between BEO and LUX, the definition of a BEO business day is changing: a business day of BEO will be deemed to be any calendar day except public holidays and rest days in Lithuania, the Grand Duchy of Luxembourg and the State of Hessen, Germany. This change is relevant to investors who switch BEO investment units into or from units of another subfund of the INVL Umbrella Fund, as the switch will be carried out only on a business day of both subfunds. All non-business days of BEO in 2021 are available on the website www.invl.com.

INVL Russia TOP20 Subfund: changes to the investment strategy, performance fee and name

Taking due account of clients’ needs, the management company INVL Asset Management made the decision to adjust the investment strategy of the INVL Russia TOP20 Subfund (hereinafter – RTS), a subfund of the INVL Umbrella Fund.

The new description of the investment strategy defines that RTS assets may be invested only in financial instruments of companies operating in the Russian Federation and other CIS countries (including former CIS countries), excluding state-controlled companies. State control shall be deemed to mean a holding of more than 20 per cent of the shares of a company. This means that, upon the entry into force of the amended Rules of the Fund, RTS will no longer be able to invest in state-owned enterprises.

This amendment is aimed at ensuring that investments are made in enterprises that are not owned by the state and are managed in a more effective and transparent manner and, therefore, are more attractive in the long-term. The new strategy will also make it possible to increase investments in new economy (information and financial technologies, e-trade, etc.) companies, the weight and the value of which in the economy are rapidly growing. Based on the assessment of the Management Company, the growth potential of private companies should be higher and the RTS portfolio should be more stable in the long-term.