We, Krungsri Asset Management Company Limited (the “Management Company”), refer to our management of Krungsri Global Small-Mid Cap Equity Dividend Fund (KF-SMCAPD) (the “Fund”) which invests in Franklin Global Small-Mid Cap Growth Fund, Class I (acc) - USD, the Master Fund since inception until present as you have been aware.
The Management Company has been tracking and assessing the Master Fund for a reasonable period of time and found that the net asset value (NAV) of the Master fund has continued to decline in value and its rate of return is relatively low when compared with other funds. According to the statement in KF-SMCAPD Project, Clause 3.11. “Details relating to the investment policy and special features”, Sub-clause 10. specifies that “In case the Management Company views that it is no longer appropriate to invest in Franklin Global Small-Mid Cap Growth Fund, Class I (acc) - USD, the Master Fund because the rate of return is not in accordance with the projection, for example, the Management Company reserves the right to allocate investment to another foreign fund that may or may not be under the same management of the previous foreign management company.
Therefore, in the best interest of the unitholders, the Management Company hereby announces the change in investment in the Master Fund. In doing so, the Management Company have performed a prudent search for a new foreign fund of consistent investment objectives and policies. Finally, the fund that meets the criteria is the Schroder International Selection Fund - Global Smaller Companies, Class A Acc - USD, details of which are as follows.
The Schroder International Selection Fund - Global Smaller Companies was established in 2006, having been managed by the Schroder Investment Management (Luxembourg) S.A. incorporated in the Luxembourg. As at 31 December 2016, its asset under management (AUM) was over USD 490,000 million. Unitholders may study the key information of the changes in the Comparison Table of the Original Master Fund and the New Master Fund attached hereto.
The above change in master fund shall take effect on 16 August 2017 onwards.
Should you have any queries or require any further information, please contact your account manager or our Client Service at 02-657-5757 press 2 or via email at krungsriasset.clientservice@krungsri.com.
Please be informed accordingly.