Prospectus Of Clerical Medical Open Ended Investment Company ...

ISSUE, REDEMPTION AND SWITCHING OF SHARES
General
Requests for the issue, redemption and switching of shares are normally dealt with by the
issue or cancellation of shares by the Company. However, in certain circumstances the ACD
may in accordance with the COLL Sourcebook, deal with such requests by selling shares to,
and/or repurchasing them from, the applicant as appropriate. The ACD is entitled to hold
shares for its own account and to satisfy requests for the sale of shares from its own holding;
it is required by the COLL Sourcebook to procure the issue or cancellation of shares by the
Company where necessary to meet any obligation to sell or redeem shares.
The ACD may not sell a share at a higher price, or redeem a share at a lower price (in both
cases before application of any initial charge), than the price notified to the Depositary in
respect of the valuation point concerned.
Where the ACD deals as principal in shares of the Company, any profits or losses arising
from such transaction shall accrue to the ACD and not the relevant Fund of the Company.
The ACD is under no obligation to account to the Company or to shareholders or any of them
for any profit it makes on the issue of shares or on the reissue or cancellation of shares
which it has redeemed and will not do so.
Exemption from the Financial Conduct Authority (FCA) client money rules
The ACD may choose to make use of the “Delivery Versus Payment” exemption within the
FCA’s client money and asset (CASS) rules. This means that when Shares are purchased
or redeemed there could be a period of time (up to close of business the day after the ACD
has received the proceeds from any such transaction) where the payment or redemption
monies for these Shares is not protected under the CASS rules. If in the unlikely event that
the ACD became insolvent during this period, there is a risk that the impacted investor may
not receive back the payment or redemption monies.
Issue
- Applications
Dealings are at forward prices ie at a price calculated by reference to the next
valuation point following receipt of an application. Shares to satisfy an application
received before the valuation point of 12 noon on a dealing day will be issued at a
price based on that day's valuation point and shares to satisfy an application received
after that time, or on a day which is not a dealing day, will be issued at a price
calculated at the valuation point made on the next dealing day.
18