VIG Russia Equity Fund

Information on the Aegon Russia Equity Fund by Aegon Magyarország Befektetési Alapkezelő Zrt.

Aegon Magyarország Befektetési Alapkezelő Zrt. (registered office: H-1091 Budapest, Üllői út 1, company registration number: 01-10-044261, hereinafter: Fund Manager) hereby informs Investors of the following:

Pursuant to resolution no. H-JÉ-III-20/2022 of the National Bank of Hungary dated 24 March 2022, the ongoing distribution of Aegon Russia Equity Fund (hereinafter: Fund) investment units has been suspended due to the geopolitical situation in Russia and Ukraine and the resulting situation on the capital markets. Pursuant to Section 116(1) of Act XVI of 2014 on Collective Investment Trusts and their Managers and on the Amendment of Financial Regulations (hereinafter: Collective Investment Schemes Act), the suspension lasted for one year, i.e. until 25 March 2023. The Fund Manager segregated the Fund’s assets that have become illiquid and the distribution of the liquid series resumed from 27^th March. The technical segregation took place on the basis of the closing balances and values on 24^th of March 2023, therefore A, I, P, and PI share classes became tradable as of 27^th of March 2023. First official net asset value calculation also took place for the 27^th of March 2023.

Pursuant to Section 128 of the Collective Investment Schemes Act, “if more than 5 percent of the Fund’s assets have become illiquid, in order to ensure the principle of equal treatment among investors and to maintain continuous distribution, the fund manager may decide to segregate the illiquid assets within the fund’s portfolio or segregate the investment units embodying illiquid assets within the investment unit portfolio.”

This means that assets that have become illiquid are segregated in new illiquid series, which remain unpurchaseable and irredeemable (AIL, IIL, PIL and PIIL). The Fund Manager is obliged to calculate net asset value for the entire Fund meaning all existing share classes, trading however is only permitted in the liquid share classes. Therefore at the same time, only the distribution of the Fund’s “A”, “I”, “P” and “PI” series launched. Fund management charges continue for the Fund’s “P” and “PI” series as follows: 1,95% p.a for the “P” and 0,75% p.a. for the “PI”. The Fund manager also introduces a 20% buy commission for the liquid share classes in order to avoid the unintended use of the liquid series and to ensure smooth liquidation of the entire Fund. The illiquid share classes may not be charged with fund management, custody or distribution fee.

The segregation procedure: Based on the valuation valid on the date of segregation, the Fund Manager credits the equivalent pieces of illiquid units (AIL, IIL, PIL or PI) to its original units (A, I, P or PI) held in the investors’ account. After this the original investment units (A, I, P and PI) become liquid and redeemable.

When the reasons for segregation no longer apply, the Fund Manager decides on terminating the segregation in part or in whole. In case the assets in the illiquid share classes become liquid  will be converted to liquid part or paid directly from the illiquid share class when all or part of the assets can be sold.

The Fund Manager will inform clients regarding the amendment of the Management Regulations and further options in a separate resolution.

Budapest, 21th April 2023

Aegon Magyarország Befektetési Alapkezelő Zrt.