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Lyxor Fd Sol S.A.

Winding up Commerzbank CCBI Investment Funds ICVC
RNS Number : 7585A
Lyxor Funds Solutions S.A.
24 January 2020
 

LYXOR FUNDS SOLUTIONS S.A.

Registered office: 22, Boulevard Royal, L-2449 Luxembourg

Grand Duchy of Luxembourg

R.C.S. Luxembourg: B 139 351

24.01.2020

Dear Shareholder

Commerzbank CCBI RQFII Money Market UCITS ETF Fund (the "Fund"), a sub-fund of Commerzbank CCBI Investment Funds ICVC (the "Company")

We refer to your investment in the Fund and an important forthcoming development. Please read the contents of this letter carefully and inform us of your preferred course of action. If you require advice about the information set out below you should contact your independent financial adviser. If you have recently sold or instructed the sale of your full holding, you may disregard this letter.

Winding up of the Company

We are writing to inform you that, we, Lyxor Funds Solutions S.A. (the "ACD"), intend to commence the winding up of the Company (in which you hold shares) on or around 7 February 2020.

The ACD has considered the financial prospects, future performance, solvency and liquidity of the Company against its principal risks. Further, the ACD is reviewing the developments of Brexit and its impact upon the Company.

The Company was established as a strategic, long term product of China Construction Bank International ("CCBI") with the aim to enter into the European market based on the internationalization of the RMB assets and currency. Currently the Fund is the sole sub-fund of the Company.

Due to the uncertainty caused by Brexit, the future broad distribution possibilities of the Fund are unclear. Post-Brexit, the Fund will lose its passporting rights, which currently allow distribution of the Fund in other EEA states without the need for additional authorization. It is therefore likely that future distribution within the current distribution countries (Luxembourg, France and Germany) will only be permitted for a limited period after Brexit.

The Fund's listing on a recognized EU Stock Exchange will also be impacted by Brexit.

Consequently, the likelihood of growing the assets under management of the Fund following Brexit is low as the Fund will be unable to attract new investors outside the UK. The assets of the Fund would consequently be unlikely to reach a point that would justify the long term economically viability of the Fund.

Finally, investors should take into account the uncertainty surrounding the continued management of the Company. The ACD is a management company with its registered office in Luxembourg and being regulated by the Commission de Surveillance du Secteur Financier ("CSSF"). At the time of this notification, it remains unclear whether or subject to what conditions, the CSSF will continue to allow Lyxor Funds Solutions S.A. to act as ACD.

The ACD intends to commence the winding up of the Company on or around 7 February 2020 and all dealings in shares of the Fund (i.e. subscriptions, redemptions, switches and conversions) shall cease from the Valuation Point (as defined in the prospectus) falling on 7 February 2020.

The ACD will pay the costs associated with the winding up of the Company (such as, for example, legal and audit costs) other than dealing costs, through the general administration charge it is entitled to receive from the assets of the Company. 

The Company will continue to bear any normal operational costs (including the annual fees of the ACD and the Company's depositary, HSBC Bank Plc (the "Depositary")) up to 7 February 2020

Shareholders in the Fund have the options set out below as of the date of this notification. In order to provide shareholders with as much flexibility as possible you can elect to sell your shares before the winding up commences. 

We draw your attention to the section headed "Tax Consequences" which provides a summary of the UK tax consequences of each option.

Note that if we do not receive your response before 4:00 pm (London time) on 6 February 2020 (being the relevant Dealing Deadline, as defined in the prospectus) all of your shares in the Fund will be compulsorily redeemed in accordance with the terms of the instrument of incorporation of the Company and the prospectus. 

Sale prior to winding-up of the Company

You may sell your shares before the winding up of the Company commences; in which case your instruction needs to be received before 4:00 pm (London time) on 6 February 2020.  Details of the redemption process are set out in the prospectus.

What happens if you do nothing?

Share dealing will be suspended with effect immediately after the Valuation Point on 7 February 2020 in order to effect the winding up of the Company, which will commence on or around 7 February 2020.

If you do not respond to us before 4:00 pm (London time) on 6 February 2020, all of your shares in the Fund will be compulsorily redeemed in accordance with the terms of the instrument of incorporation of the Company and the prospectus.  We expect to make only one payment to each shareholder on termination, however, should there be any residual amounts remaining that are due to shareholders after this initial payment, for example as a consequence of the settlement of any tax liabilities in China, a further payment may be made to shareholders at the earliest opportunity and in any event within 4 months of the date of completion of the winding up.

Anti-Money Laundering

We are required to comply with the prevention of money laundering and terrorist financing regulations in force in the United Kingdom, and this requires us to verify your identity.  If we do not currently hold satisfactory or up-to-date verification evidence, we may request further information to verify your identity prior to releasing any proceeds from the sale of your investment.

Tax Consequences

Investors who choose (i) to redeem their shares prior to commencement of the winding up, or (ii) remain invested in the Fund until winding up commences, will be treated as disposing of their shares for the purposes of UK capital gains tax and corporation tax on chargeable gains.  This may result in a liability to UK capital gains tax or UK corporation tax for investors depending on their individual circumstances.  

The information provided above, which is based on current UK tax legislation and what is understood to be the current practice of HMRC as at the date of this circular, does not constitute, and is not a substitute for, tax advice. It may be subject to change.  The tax consequences of exercising one of the options above may vary depending on the tax laws and practices of your country of residence or domicile. If you are in any doubt about your potential tax liability, you should seek professional advice regarding the tax implications of the proposed arrangements. 

Consent

Winding up of the Company is a commercial decision of the ACD, however, we are required to seek approval from the FCA in relation to its proposed termination. Accordingly, we submitted an application to the FCA to seek confirmation that we may proceed with the winding up.  Subject to receipt of such confirmation we will proceed with the winding up of the Company on or around 7 February 2020.

We will, however, contact you again if the winding up is not to proceed, or if we (with the agreement of the Depositary) change the proposed winding up date.

The Depositary has reviewed the ACD's proposals to wind up the Company and has not raised any objections to such proposals.

Action to be taken

If you are uncertain as to how to respond to this document, you should consult your financial adviser for advice.

If you have any questions concerning the proposals, please contact Lyxor Funds Solutions S.A. on Tel +352 47 93 11 4096 between 9.00 am and 5.00 pm CET Monday to Friday, not including public holidays, but please be aware that we are not authorised to give investment advice.

Yours sincerely

 

Director

For and on behalf of

Lyxor Funds Solutions S.A.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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