COMMUNICATION OF KEY INFORMATION

THIS COMMUNICATION CONTAINS THE KEY INFORMATION ABOUT THIS INVESTMENT PRODUCT. THIS IS NOT PROMOTIONAL MATERIAL. PROVISION OF SUCH INFORMATION IS REQUIRED BY THE LAW TO HELP YOU UNDERSTAND THE ESSENCE, RISKS, COSTS, POTENTIAL YIELDS AND LOSSES RELATED TO THIS PRODUCT AND COMPARE IT WITH OTHER PRODUCTS.

GENERAL INFORMATION

PRODUCT NAME ISIN
Investment shares
NAME OF THE PRODUCT CREATOR WEBSITE TELEPHONE
BHMW INVEST SICAV a.s. www.bhmwinvest.com +420 727 827 417
THE SUPERVISORY BODY RESPONSIBLE FOR SUPERVISION OVER THE CREATOR OF THE PRODUCT PROCESSING DATE / LAST MODIFICATIONS
The Czech National Bank, having its registered seat at Prague 1, Na Príkope 28, Postal code 115 03, www.cnb.cz 8. 2. 2019
NOTE
THE PRODUCT THAT YOU INTEND TO ACQUIRE IS COMPLICATED AND MAY BE DIFFICULT TO COMPREHEND.

WHAT KIND OF PRODUCT IS CONCERNED?

PRODUCT TYPE

Investment shares issued to the BHMW INVEST SICAV a.s. fund This concerns participating securities
issued to the investment fund, which is:

– an alternative investment fund within the meaning of Directive 2011/61/EU of the European Parliament (hereinafter the “AIFMD”);

– a fund of qualified investors within the meaning of Act No. 240/2013 Coll., on Management Companies and Investment Funds (hereinafter the “MCIF”), and

– a joint stock company with variable registered capital within the meaning of the MCIF.

PRODUCT TARGETS
The investment target of the fund is to achieve maximum possible appreciation by long-term investments through capital interests in companies focusing mainly on the bottling and distribution of therapeutic and mineral water products, real estate companies and provision of credit and loans. A resource to achieve the investment target is capital appreciation of the investments, collection of
dividends and interest rates on the credit and loans provided. The investments are located particularly in the region of the Czech Republic, nevertheless, the investment strategy does not contain regional limitation. The fund has no intent to monitor any index or benchmark. The relationship between the fund portfolio yield and the product yield is direct. The investor participates proportionately with the other investors in the product in terms of the yield and loss of the sub-fund. The return on investments in the fund is not guaranteed.
INTENDED RETAIL INVESTOR

This product may be acquired exclusively by a qualified investor within the meaning of Section 272(1) of the MCIF. The product is suitable for investors with intent to supplement their portfolios with alternative investments with a higher yield potential and who are also at the same time willing to carry a high risk of loss, whereas the investment in the product represents necessary money and a limited portion of total investments. The product is not suitable for investors who in case of necessity require quick conversion of the investment to cash before expiry of the planned investment horizon of the fund.

Investor’s investment horizon: min. 5 years

The product is primarily suitable for investors who:

  • are capable of absorbing the full investment loss,
  • accept limited liquidity for their investment,
  • have knowledge and experience in investments into capital and real estate companies; preceding
    experience is however not required.
PRODUCT DURATION PERIOD
The fund was established for an indefinite time. With regard to the above-stated, the product does not have a set maturity date. BHMW INVEST SICAV a.s. is not entitled to unilaterally withdraw from the product excluding cases of termination of the fund. The product may be terminated automatically in case of termination of the fund. The fund may be cancelled for reasons stipulated by law. The fund may also be terminated for reasons other than of a legal manner by decision of the fund manager, which may have the consequence that the investor cannot hold the product for the duration of the recommended investment horizon. A guarantee does not exists and is not provided for the possible staying of the shareholder in the fund.

WHAT ARE THE RISKS AND THE YIELD I COULD ACHIEVE?

SUMMARY RISK INDICATOR (SRI)
1 2 3 4 5 6 7

LOWER RISK                                                                                                                 HIGHER RISK

NOTE

The SRI assumes that you will keep the product for 5 years. The real risk may substantially differ if you request the premature redemption of the product. You can thus get less back.

Perhaps you will not be able to easily terminate your product or you may have to terminate it at a price which substantially influences how much you will recover.

WORD DESCRIPTION OF THE SRI

 

The summary indicator of the risks is a guide for the level of the risk of this product in comparison with other products. It shows the probability of the product losing money due to movements in the markets, or because we shall not be able to pay you.

We entered this product in class 6 of 7, which is the second highest risk class.

This product is classified in the given risk class because of the absence of a relevant historical data series, or absence of a comparable indicator with an adequate historical data series.

It evaluates the potential losses of future performance at a high level and it is highly probable that our capacity to make payment to you shall be impacted by the unfavourable market conditions.

For the yield from this product, the fundamental features are market risk, particularly the risk of development of the market prices, credit, concentration and interest rate risk. A relevant factor is the operational risk of potential failure of the internal processes, the human factor or due to external events. A detailed overview of the risks, which relate to the product, is given in Article 7 of the Fund Statute.

This product does not include protection against future market performance, such that you could lose part of or all of your investments.

If we are capable of paying the outstanding amount to you, then you could lose all your investments.

Depending on the investment term, a fee may be charged to you for premature termination of the product (see the section on Fees and Penalties upon redemption of the product in the “How long should I keep the investment? Can I withdraw the money prematurely?” section).

PERFORMANCE SCENARIO

This table shows how must you could get back in the next 5 years according to the various scenarios assuming investment of CZK 1,000,000.

The given scenarios illustrate how your investments could function. You can compare it to the scenarios of other products.

The presented scenarios are an estimate of the future performance based on past proof of how the value of this investment varies, and the proof does not constitute a precise indicator. What you get will differ depending on the market performance and how long you will keep the investment/product.

The stress scenario shows what you could get back under extraordinary market conditions, and does not take into consideration a situation in which we are capable of making a payment to you.

The given data includes all the costs of the product itself, but need not include all the costs which you shall pay to your consultant or distributor. The data does not take your tax situation into consideration, which may also impact how much you get back. The tax regulations of your home Member State may affect the real amount paid to you.

These scenarios state how much you could get for the holding time after payment of the costs.

The value of the investment for the given holding time is denominated in CZK; an average annual % yield is assumed.

Scenario Product holding for 1 year Product holding for 3 years Product holding for 5 years (recommended holding time)
Stress scenario 991 905 -0,81 % 1 073 040 2,4 % 1 170 452 3,22 %
Unfavourable scenario 1 010 000 1,00 % 1 125 365 4,04 % 1 272 234 4,95 %
Moderate scenario 1 021 832 2,18 % 1 160 040 5,09 % 1 330 624 5,90 %
Favourable scenario 1 033 663 3,37 % 1 195 005 6,14 % 1 389 893 6,82 %

WHAT HAPPENS WHEN BHMW INVEST SICAV a.s. FAILS TO PAY?

NON-EXISTENCE OF A PRODUCT GUARANTEE AND COMPENSATION SYSTEM
The investor may face financial loss due to failure of the creator of the product, whereas such a loss is not subject to any compensation or guarantee system for investors.

WHAT ARE THE RELATED INVESTMENT COSTS?

SUMMARY RISK INDICATOR (RIY)

Reduction in yield (RIY) shows the impact of total costs incurred in the investments that you could earn. The total costs take into consideration the one-off, running and auxiliary costs.

The costs stated here are cumulative product costs for three different holding periods. They include potential deductions for premature termination. The data assume that you will invest CZK 1,000,000. This data is an estimate and may change in the future.

TIME COSTS

The person selling this product to you or who provides consulting services about it to you may bill you different fees. If this is the case, then such a person shall provide you with information about the costs and clarify the impact of the total costs on your investments in time.

Investments CZK 1,000,000 If you request redemption after 1 year If you request redemption after 3 years If you request redemption after 5 years (recommended)
Total costs (CZK) 84 414 63 335 76 474
Annual Reduction in Yield (RIY) (%) 8,44 % 2,11 % 1,53 %

COST STRUCTURE

The table below shows:

  • the annual impact of each of the various types of costs on the investment yield, which you could earn at the end of the recommended holding time,
  • the significance of the various cost categories.
This table shows the annual reduction in yield
One-off costs Input costs 0% Impact of investment input costs. This is the maximum that you will pay, and you could pay less. This includes the product distribution costs.
Output costs 0% Impact of the costs on termination of your investments upon reaching the recommended holding time.
Running costs Portfolio transaction costs 0% The impact of the product costs of your purchases and sales of underlying investments.
Other running costs 2,9 % Impact of the costs which we annually spend on management of your investments.
Ancillary costs Performance fees 0% Impact of the performance fee. We collect them from your investments if the product has reached its comparative benchmark.
Rewards for appreciation of capital 0 % Impact of the rewards for appreciation of capital

HOW LONG SHOULD I HOLD THE INVESTMENT? CAN I WITHDRAW THE MONEY PREMATURELY?

RECOMMENDED HOLDING TIME

Recommended investment horizon: 5 years

The fund particularly acquires capital interests in companies primarily engaged in the bottling and distribution of therapeutic and mineral water products, capital interests in real estate companies and medium-term and long-term credit instruments in the form of provided loans and credit. These investments at least assume a medium-term horizon to achieve planned appreciation. Premature termination of the investment is associated with additional liquidity costs on the part of the fund, and for this reason premature ¨redemption of the product within 3 years after the investment date is subject to a reduction.

INVESTMENT TERMINATION PROCEDURE AND WHEN INVESTMENT TERMINATION IS POSSIBLE

The product can be terminated by submission of a written request for product redemption on a prescribed form:

in person at the registered office of the fund administrator: DELTA Investicní spolecnost, a.s., Americká 340/31, Vinohrady, 120 00 Prague 2, on business days from 9 a.m. to 4 p.m., with the officially authenticated signature of the investor by post sent to the above-stated address of the fund administrator.

The investor is also entitled to terminate the product even prior to expiry of the recommended investment horizon. Premature redemption of the product may have the following consequences on the risk yield profile of the product:

During redemption in a horizon of less than three years, a curtailing fee shall be charged, which may cause generally lower appreciation of the investments than the expectations of the investor.

During redemption in a horizon of less than five years, there is a lower probability that the product shall reach the set objectives, which may generally cause lower appreciation of the investments than the expectations of the investor.

CHARGES AND FEES DURING PRODUCT REDEMPTION

Exit charge (deduction)

  • 0% of the total current value of the redeemed investment shares as of the date of submission of the request for redemption in case of submission of a redemption request upon lapse of 3 years after the first investment of the investor in the fund;
  • 5% of the total current value of the redeemed investment shares as of the date of submission of the request for redemption in case of submission of a redemption request within 3 years after the first investment of the investor in the fund.

HOW CAN I LODGE A COMPLAINT?

LODGING A COMPLAINT

A complaint regarding the product, actions of the product creator or distributor can be filed in writing via the fund administrator:

  • person at the registered office of the administrator: DELTA Investicní spolecnost, a.s., Americká 340/31, Vinohrady, 120 00 Prague 2, on business days from 9 a.m. to 4 p.m.
  • by post to the address of the administrator: DELTA Investicní spolecnost, a.s., Americká 340/31, Vinohrady, 120 00 Prague 2
  • by electronic mail to the address info@deltais.cz
  • via the form on the www.deltais.cz website

OTHER RELEVANT INFORMATION

INFORMATION DOCUMENTS THAT MUST BE PROVIDED TO THE INVESTOR IN THE PRECONTRACT OR POST-CONTRACT STAGE

The following information documents shall be provided free-of-charge to the investor on demand:

  1. Fund statute and creator
  2. Statutes of the creator
  3. Last fund annual report

These documents shall be provided by the fund administrator to the investor in electronic format by e-mail, or in hard copy format at the registered office of the fund administrator.