Measures to protect existing shareholders
Effective for orders placed on or after Thursday April 22nd, 2010 order deadline, the board of Directors of Pictet funds together with the fund managers have decided to limit new subscriptions into the Pictet-Emerging Local Currency Debt compartment, “the Fund”, until further notice.Protection of existing investors is our first priority
Since the start of the year, continuous strong demand for the Fund has resulted in substantial inflows, inducing a fund size growing from USD 1.5bn, as at end of December 2009, to a fund size of USD 5.7bn as at April 16th, 2010. In order to protect our existing investors, and ensure that we continue to deliver the quality of results which we have achieved so far, the soft measure has become necessary in order to:• ensure the implementation of our philosophy and investment process;
• remain in compliance with our internal liquidity guidelines: given that liquidity conditions in global emerging markets are still more difficult than in developed markets, a material increase in the fund size would worsen the ability of the fund to promptly cut or liquidate some positions or to rebalance the existing portfolio without triggering any market impact.
Consequences of the soft close
Consequently, no significant orders for the Fund will be accepted. This should allow our existing clients to rebalance their positions without compromising the performance of the Fund.
Of course, the terms under which clients may redeem their holdings will not be affected by this decision.
Such measures may be applied, changed or lifted by the board of Directors of Pictet funds at any time and at its discretion as outlined in the Fund’s Prospectus. We will keep you informed of any developments that might lead us to review our position.
Other Emerging Debt products
The other products of the Pictet range investing in emerging debt will remain open for subscriptions for the time being. However, we will probably have to take similar measures should inflows accelerate in any of the other strategies:
Pictet-Global Emerging DebtPictet-Global Emerging CurrenciesPictet-Asian Local Currency DebtPictet-Latin American Local Currency Debt
Shareholders and investors will be informed accordingly should such measures be applied to other products.
