Introduction of Liquidity Management Mechanisms

We would like to inform you that we have decided to introduce liquidity management mechanisms (“Swing Pricing” and “Gates”) for the below funds effective from 29 December 2023 :

• Longchamp Income Evolution Fund
• Longchamp Kinzica Fund
• Longchamp Patrimoine Fund
• Galileo Multi Asset Premia Fund
• ASIP Fund

These mechanisms, namely “Swing Pricing” and “Gates,” aim to protect investors’ interests during exceptional market conditions and significant subscription / redemption movements.

Please refer to specific fund documentation for further details on the implementation of these mechanisms.

Swing Pricing Mechanism:

The “Swing Pricing” mechanism aims to adjust the Net Asset Value (NAV) based on net subscription/redemption movements. Its purpose is to protect existing unit holders from potential dilution effects resulting from portfolio restructuring costs. This mechanism adjusts the NAV to reflect these costs, primarily borne by investors initiating the movements, ensuring a fair value for all unit holders.

Gates – Redemption Limitations:

The “Gates” are designed to spread redemption requests across multiple NAVs if they exceed a pre-established objective threshold. This helps manage liquidity risk effectively and ensures equitable treatment of orders while preserving investor interests. If liquidity conditions permit, we may honor redemptions beyond this threshold, but in case of blockages, orders will be deferred to the next consolidation date.

As always, our team remains at your disposal at the following email address should you have any questions or require any additional information:

clientsupport@longchamp-am.com