Pure Europe Small & Mid Cap Equities - IC An equity fund This information is valid at 17/04/2024

A selection of small and medium-size European companies, disciplined management, with a focus on Growth, Quality and Valuation.

“European small and mid-cap companies can offer excellent potential, but there are some traps to avoid, such as confusing a fashionable trend with true growth potential, or not being sufficiently wary of valuations. The companies selected for this sub-fund must be positioned on a sustainable growth trend and must meet a high quality criteria, particularly in terms of cash flow generation, which is the DNA of the sub-fund. But these companies still need to be reasonably valued. The strict discipline observed when buying or selling a company is another way that potential return can be enhanced.”

Investment objective and policy

The sub-fund’s objective is to maximize the investor’s returns over the long term (minimum 5 years), through the active selection of small and mid-cap companies, most of which are based in Europe.

Under normal market circumstances, the sub-fund invests a clear majority of at least 55% of its total net assets in small and mid-cap equities of companies domiciled in or doing most of their business in Europe. The investment manager may also make marginal investments opportunistically in listed North American companies, to a maximum of 15% of net assets.

The sub-fund is actively managed and with no reference to a benchmark.

The sub-fund is classified as Article 6 under SFDR regulation. The sub-fund does not consider principal adverse impacts on sustainability factors.

Investor profile

The sub-fund is intended for all investors who are looking for opportunities in European small and mid-cap companies.

Investors must have a long-term investment horizon of at least five years.

Investors should note that due to the relatively small size of the companies in the sub-fund’s portfolio this investment strategy may be subject to greater liquidity risk.

Important information for investors:

The chart and returns shown below refer to past performance and do not constitute a reliable indicator for the future. This sub-fund does not offer a capital guarantee. Before investing, you should always read the PRIIPS-KID and the prospectus.

The change in net asset value and returns indicated are net of management fees, performance fees and any other fees and charges which, as indicated in the prospectus, are borne by the sub-fund. They do not include any subscription fees that may be paid to the distributor, nor any annual custody fees that may be deducted by the custodian, nor any taxes for which the investor may be liable. The returns indicated are calculated in EUR and are based on the sub-fund’s share price or Net Asset Value (NAV).

Source: Pure Capital

The Summary Risk Indicator (SRI), in accordance with the Key Information Document (PRIIPS-KID), allows the level of risk of this product to be assessed in relation to others. It indicates the likelihood of losses in the event of market movements or the sub-fund's inability to pay you. This indicator ranks the risk on a scale of 1 to 7. A low score indicates lower risk but potentially lower return. A higher score will lead to higher risk but potentially higher return.

The level of risk indicated is not a guarantee and may change over time. It also assumes that you keep the product for minimum 5 years. The risk may be significantly different if you sell the product at an early stage and you may get a lower return.

Main risks

• “Equity” risk. The price of an equity security may vary, sometimes due to factors that have nothing to do with the company’s intrinsic value. Equity prices may be affected by economic factors and market conditions, such as a general decrease in share prices or conditions that affect one or more specific issuers, such as changes in earnings forecasts.
• Small and mid-cap investment risk. Although smaller companies have the capacity to increase their share price more rapidly than do larger companies, they are subject to greater risks.
• Credit risk. An issuer may be unable to meet its obligations.
• Counterparty risk. The sub-fund may suffer losses if a counterparty defaults and is unable to meet its obligations, particularly if the transaction with the counterparty involves over-the-counter derivatives.
• Liquidity risk. The sub-fund may invest in markets which may be adversely affected by a decrease in liquidity. These market conditions may affect the price at which the asset manager buys or sells a given security.
• The risk of using certain financial techniques. The use of complex products, such as derivative contracts, may amplify changes in the price of the sub-fund’s securities.
• Exchange rate risk. The risk that the exchange rate of a given currency may vary with respect to that of another currency over the near or medium term.
• Discretionary management risk. There is a risk that the sub-fund may not always be invested in the best-performing markets.
• Operational risk. The risk of an error or wrongdoing on the part of a party involved in the management, valuation and/or custody of the sub-funds assets.
• Sustainability risk. Uncertain social or environmental event or condition that, if it occurs, can cause significant negative impact on the sub-fund’s assets.

Details

• Name: PCFS – Pure Europe Small & Mid Cap Equities - IC
• Classification: European small and mid-cap equities
• ISIN code: LU1410420092
• Bloomberg ticker: PURESMF LX Equity
• Type: Undertaking for collective investment in transferable securities (UCITS)
• Legal form: A sub-fund of the “PCFS” Luxembourg SICAV fund
• Inception date: 23/09/2016
• NAV on inception: €100
• Currency: EUR
• Benchmark index: None
• Share type: Accumulation
• Term: Indefinite
• Minimum recommended investment horizon: Minimum 5 years
• Investor type: Professional & Institutional
• Management company: Pure Capital S.A. – A Luxembourg-based management company
• Auditor: PwC Luxembourg
• NAV publication: Website, Bloomberg, Morningstar and Beama.be

Fees

• Management fee and other administrative or operating expenses (including Management Fee : max. 0.50%): 1.20%
• Transaction fee: 0.20%
• Performance fee: 10% over hurdle of 8% with a High Water Mark
• Subscription fee: Max. 3%, at the distributor’s discretion
• Redemption fee: 0%

Subscriptions/Redemptions

• Minimum investment requirement: €5.000.000
• Cut-off: 10:00 am (CET)
• NAV valuation frequency: Daily
• Settlement date: Max. (D+3)
• Transfer agent / Depositary: CACEIS Investor Services Bank S.A.
• Swing pricing applicable: No

This is an advertising communication. Please refer to the prospectus of the fund and the Key Information Document (PRIIPS-KID), for the UCITS before making any final investment decision.

These are available free of charge on request from Pure Capital S.A. (tel: +352 26 39 86) or on its website www.purecapital.eu. The PRIIPS-KID is available in French, Dutch and English. The prospectus, the half-yearly report and the annual report are available in English.

The information presented above does not constitute investment advice and is intended for promotional purposes. It is neither a binding contractual document nor a disclosure document required by law, and is not sufficient for making an investment decision.

Past performance is not a reliable indicator of future results. Performance may vary over time. Investments are subject to market fluctuations and the investor may get back less than is invested. Exposures, allocations and investments may vary in the future in response to different market conditions at Pure Capital's discretion. There can be no guarantee that the investment objectives will be achieved.

The management and custodian fees, as well as any other costs which, in accordance with the prospectus, are charged to the sub-fund, are included in the calculation of the net asset value and, consequently, the performance.

An annual custody fee may be charged by the account holder. They vary from one institution to another. To find out about them, it is necessary to ask it.

The tax treatment of this product depends on the investor's situation. For example, in Belgium, the tax treatment may be the following:

• Transactions tax: No tax is charged when purchasing the sub-fund. A 1.32% tax is charged when selling accumulation shares only. This tax is capped at €4,000.

Investors can find out about their rights at https://www.purecapital.eu/legal.html. A summary is available in English and French.

Any complaints or claims can be addressed in writing to the company's head office: Pure Capital S.A., 2 rue d'Arlon, L-8399 Windhof, Grand Duchy of Luxembourg, for the attention of Mr Thierry Léonard, Managing Partner. If the handling of these complaints by the internal service does not satisfy the investor, they may, for Belgium, be submitted to Ombudsfin, Financial Services Ombudsman, North Gate II, Boulevard du Roi Albert II, n° 8 bte. 2, 1000 Brussels, e-mail: ombudsman@ombudsfin.be in writing or via the online complaint form http://www.ombudsfin.be/fr/particuliers/introduire-une-plainte/.

Pure Capital S.A. may decide to cease the marketing of its collective investment schemes in accordance with Article 93a of Directive 2009/65/EC and Article 32a of Directive 2011/61/EU.