Capacity Restricted Dealing – CRD

Capacity Restricted Dealing – CRD

What is Capacity Restricted Dealing?

Capacity Restricted Dealing ("CRD") allows Schroder Investment Management (Europe) S.A., (the “Management Company”, “us”) to recycle spare capacity in our funds. CRD may be implemented for funds which are closed to new subscriptions or switches, where  capacity has become available. Any investor who wants to invest in a fund for which CRD is in effect, is invited to fill out an expression of interest form (“EOI”). When capacity becomes available, investors who have filled an EOI will be invited to subscribe to the fund or share class in the order in which EOIs were received on specific dedicated dealing sessions.

We may not implement CRD for all funds which are closed to new subscriptions or switches.

Is there a Minimum and/or Maximum investment amount ?

Minimum subscription amounts set out in the relevant prospectus are still valid. However, subscriptions further to an EOI, will be subject to the following:

− Minimum: 2 Million EUR or USD

− Maximum: 20 Million EUR or USD

How will it work?

We will send a notice to investors who request to subscribe shares of funds that have implemented CRD inviting them to join a waiting list by completing an EOI and sending it by e-mail to their local sales office. Alternatively, investors may complete an EOI directly and send it by e-mail to their local Sales Office. Shareholders or investors who have submitted and EOI are called “Applicants”.

The relevant sales offices will acknowledge receipt and confirm if the EOI is valid. All customer due diligence must be finalised before the EOI is validated and an investor is added to the waiting list.  

When capacity in a fund is available, we will contact Applicants on the waiting list to confirm their requested capacity allocation(s) (as set out in their EOI) and to invite them to subscribe in one or several dealing sessions, until the available capacity has been used up.

Applicants will be invited to subscribe in the order in which we have received their EOI. However, where capacity is offered to the relevant fund for a limited time period, only Applicants who are able to subscribe within the relevant timeframe, as specified in their EOI, will be contacted. Applicants will remain on the waiting list until they have been invited to subscribe as and when there is capacity. We will regularly check whether the details included in EOIs are up to date. 

When we invite Applicants to subscribe, subscription orders should be submitted through the usual dealing channels (Please consult the Prospectus of the SICAV for more information). Subscriptions must adhere to the terms set out in the EOI and must be received by us within the relevant dealing cut-off date. Applicants may invest in any class for which they are eligible in accordance with the prospectus.

Investors who have not submitted an EOI will not be permitted to invest in a fund for which CRD is in effect unless the allocated capacity for the relevant fund has not been filled in by Applicants’ subscriptions. Applicants who withdraw their EOI will be removed from the waiting list and must re-submit an EOI to be able to subscribe in the future.

We draw your attention to the Important Terms and Conditions below, providing more detail on how the CRD facility will operate.

Will only existing investors be allowed to invest?

No, but new investors must open an account (directly or via a platform/custodian) and complete customer due diligence before they submit an EOI and can be placed on the waiting list. Existing investors must have completed any outstanding customer due diligence obligations in order for their EOIs to be validated and added to the waiting list.

How will investors be notified if we implement CRD for a fund?

When we notify shareholders that a fund is closed to new subscriptions or switches, we will include a reference to the CRD process, if applicable for that fund and will contain a link to this webpage and to the EOI. 

If we implement CRD for funds that are already closed to new subscriptions or switches, we will send a shareholder notice containing a link to this page and to the EOI and advising shareholders that they may submit an EOI if they wish to invest when capacity becomes available.

The list of funds that have implemented CRD can be found under the below link, together with the EOI and other information in relation to CRD process.

At the following links you will find:

  1. The EOI;
  2. The list of funds that have implemented CRD and other information.

Who should I contact for more information?

Please contact your local Schroders office or the Management Company’s Client Support Managers (CSMs) by email, europeclientservices@schroders.com or by phone on (+352) 341 342 444.

 

Disclaimer

When submitting an EOI,  Applicants are deemed to have read and accepted the terms and conditions of the CRD set out below.  The Management Company accepts no responsibility for  an Applicant’s failure to comply with any of the terms and conditions below and/or with the terms of the relevant fund’s prospectus. 

Important Terms and Conditions

  1. For new customers, an account (direct or via clearing house, custodian/depositary bank, other) must be opened and due diligence documents completed and up to date before the Management Company will accept an applicant's expression of interest ("EOI") form.
  2. EOI forms must be for a minimum aggregate value of €2 million or its equivalent in the relevant share class currency.
  3. EOI forms must be scanned and sent by e-mail to the client’s local Sales Office. No other method of submission will be
  4. EOI forms must be completed fully and correctly to be valid. Only valid forms will be
  5. The Sales Offices will acknowledge receipt of each EOI form received and confirm the validity of the application. Validly submitted forms will be added to the waiting list by the Management Company in strict order of receipt. A place on the waiting list does not guarantee that an invitation to subscribe will
  6. As capacity becomes available, invitations will be issued to applicants at the head of the waiting list in strict "first come, first served" order. Where capacity is offered to a fund for a limited time period, invitations will only be issued to applicants who are able to subscribe within that period in accordance with their EOI, in order of receipt. Invitations will be sent by e-mail to the address(es) given on the applicant's EOI
  7. Invitations to subscribe will indicate the dates between which subscriptions may be submitted and the associated dealing cut-off
  8. Financial institutions who have or deal through several accounts or agents must submit an EOI form for each account or agent through which they wish to
  9. Applicants who wish to subscribe following an invitation by the Management Company must ensure that the total aggregate value of their subscription(s) is below or equal to their Requested Capacity Allocation(s) stated on their EOI form(s). Financial institutions who subscribe through several accounts and agents must ensure that the total aggregate value of subscriptions through those accounts and agents does not exceed €20 million (at the time of the Management company’s invitation to subscribe). The Management Company may reject subscriptions that exceed these
  10. Applicants who have submitted valid EOI forms will remain on the waiting list until they have been invited to subscribe as and when the Fund has available capacity. Applicants may withdraw their EOI form at any Any subsequent EOI form they submit will be treated as a new application and will join the tail of the waiting list. Applicants will be regularly contacted by their Sales Office to ensure they are still interested in the requested capacity.
  11. Applicants will be asked to confirm the requested capacity allocation(s) as well as their capacity to subscribe the relevant amounts within the timeframe specified in the EOI by email within the 5 business days from the date on which they are invited to subscribe. This amount may not exceed the original EOI’s requested capacity
  12. Applicants must complete any investment due diligence within the time for subscription (and the associated dealing cut-off times) indicated in the invitation to subscribe.
  13. Applicants who have been invited to subscribe but who fail to subscribe within the dates given in their EOI or who do not subscribe for the total value stated in the EOI may have their EOI removed from the waiting list. Any subsequent EOI form they submit will be treated as a new application and will join the tail of the waiting
  14. When invited to subscribe, applicants may subscribe into any class of share for which they are Subscription orders should be submitted and settled in the usual manner.
  15. The Management Company may allocate capacity outside of CRD in certain circumstances in accordance with the prospectus. 

Important Information

This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions.

Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested.

Issued by Schroder Investment Management (Europe) S.A., 5 rue Höhenhof, L-1736 Senningerberg , who is authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF). For your security, communications may be taped or monitored.