Access to information contained on this website is exclusively reserved for professional investors in Luxembourg. Please read the important information below. This contains legal and regulatory information which applies to our company status, use of this website and information about any investment in our products referred to in this website. Note that you will have to accept these terms and conditions before you can proceed. Copyright 2021 by Nordea Investment Funds S.A. – all rights reserved.
Please note that you are required to read and accept the terms of our privacy policy and the use of cookies before you are able to access our websites.
For full privacy and cookie policy please refer to the link below.
Access to information contained on this website is exclusively reserved for investors in Luxembourg. Please read the important information below. This contains legal and regulatory information which applies to our company status, use of this website and information about any investment in our products referred to in this website. Note that you will have to accept these terms and conditions before you can proceed. Copyright 2021 by Nordea Investment Funds S.A. – all rights reserved.
Please note that you are required to read and accept the terms of our privacy policy and the use of cookies before you are able to access our websites.
For full privacy and cookie policy please refer to the link below.
You have requested to view an article or page that is not available in your domain, selected language and/or to your investor type.
Go to Home PageMay 2020
NOTICE OF MERGER TO SHAREHOLDERS OF
Nordea 1 – Danish Bond Fund
and
Nordea 1 – Danish Covered Bond Fund
____________________________________________
We would like to inform you that the board of directors of Nordea 1, SICAV (the “Board of Directors”) has decided to merge Nordea 1 – Danish Bond Fund (the “Merging Fund”) with Nordea 1 – Danish Covered Bond Fund (the “Receiving Fund”) (the ‘’Merger’’).
The Merging Fund together with the Receiving Fund are hereinafter to be referred to as the “Funds” whereas Nordea 1, SICAV is to be referred to as the ‘’Company’’.
The Merger shall become effective on 9 June 2020 (the “Effective Date“).
On the Effective Date, all assets and liabilities of the Merging Fund will be transferred to the Receiving Fund. The Merging Fund will cease to exist as a result of the Merger and thereby will be dissolved on the Effective Date without going into liquidation.
Shareholders who agree with the changes proposed in this notice do not need to take any action.
Shareholders who do not agree with the Merger have the right to request the redemption or switch of their shares free of charges from the date of the notice until before 15:30 CET on 28 May 2020, as further described below in section 5.
This notice describes the implications of the Merger and must be read carefully. The Merger may impact your tax situation. Shareholders in the Funds are advised to consult their professional advisers as to the legal, financial and tax implications of the Merger under the laws of the countries of their nationality, residence, domicile or incorporation.
Nordea 1 – Danish Bond Fund | Nordea 1 – Danish Covered Bond Fund | ||||
Share class | ISIN |
Ongoing Charges |
Share class | ISIN |
Ongoing Charges |
BP-DKK | LU0064319766 | 0.88% | BP-DKK | LU0076315968 | 0.87% |
BP-EUR | LU0173778845 | 0.88% | BP-EUR | LU0173779223 | 0.87% |
E-EUR | LU0173775239 | 1.62% | E-EUR | LU0173775403 | 1.62% |
E-DKK | LU0173791350 | 1.62% | E-DKK | LU0173792754 | 1.62% |
BP-GBP | LU0994686888 | 0.88% | BP-GBP | LU0994694122 | 0.87% |
Similarities:
The Management Company will bear the legal, advisory and administrative costs and expenses associated with the preparation and completion of the Merger.
The shareholders of the Merging Fund and of the Receiving Fund are invited to consult their own tax advisors with respect to the tax impact of the contemplated Merger.
Shareholders having any question relating to the above should contact their financial advisor or the Client Relationship Services at the Management Company at: +352 27 86 51 00.
6 May 2020
Yours faithfully
On behalf of the Board of Directors
Appendix I
Key features of the Merging Fund and of the Receiving Fund
The Merging Fund Nordea 1 – Danish Bond Fund |
The Receiving Fund Nordea 1 – Danish Covered Bond Fund |
Investment objective and policy The Merging Fund’s objective is to provide shareholders with investment growth in the medium to long term, while achieving above-market performance.. |
Investment objective and policy The Receiving Fund’s objective is to provide shareholders with investment growth in the medium to long term while achieving above-market performance… |
Eligible assets The Merging Fund mainly invests in Danish bonds. Specifically, the Merging Fund invests at least two-thirds of its total assets in debt securities that are issued by public authorities, or by companies or financial institutions that are domiciled, or conduct the majority of their business, in Denmark. The Merging Fund’s main currency exposure is to the base currency, although it may also be exposed (through investments or cash) to other currencies. |
Eligible assets The Receiving Fund mainly invests in Danish covered bonds. Specifically, the Receiving Fund invests a minimum of two-thirds of its total assets in covered bonds that are issued by public authorities, or by companies or financial institutions that are domiciled, or conduct the majority of their business, in Denmark. The Receiving Fund’s major part of currency exposure is hedged to the base currency, although it may also be exposed (through investments or cash) to other currencies. |
Benchmark Nordea Constant Maturity 5 Year Government Bond Index (for performance comparison). |
Benchmark None. |
Derivatives The fund may use derivatives for hedging (reducing risks), efficient portfolio management and to seek investment gains. The use of derivatives is not cost or risk free. |
Derivatives The fund may use derivatives for hedging (reducing risks), efficient portfolio management and to seek investment gains. The use of derivatives is not cost or risk- free. |
Strategy In actively managing the Merging Fund’s portfolio, the management team selects securities that appear to offer superior investment opportunities. |
Strategy In actively managing the Merging Fund’s portfolio, the management team selects securities that appear to offer superior investment opportunities. |
Investment manager(s): Nordea Investment Management AB |
Investment manager(s): Nordea Investment Management AB |
Base currency: DKK | Base currency: DKK |
Risk Considerations The risk and reward profile indicator measures the risk of price fluctuations in the Merging Fund based on the last 5 years volatility and places the Merging Fund in category 3 for all share classes except for the BP GBP share class which shows a SRII of 4. This means that the purchase of units in the Merging Fund is connected to medium risk of such fluctuations. Following risks are materially relevant to the UCITS but are not adequately captured by the synthetic indicator and may cause additional loss: – concentration – derivatives – prepayment and extension – covered bond – interest rate |
Risk Considerations: The risk and reward profile indicator measures the risk of price fluctuations in the Receiving Fund based on the last 5 years volatility and places the fund in category 3. This means that the purchase of units in the Receiving Fund is connected to medium risk of such fluctuations. Following risks are materially relevant to the UCITS but are not adequately captured by the synthetic indicator and may cause additional loss: – concentration – covered bond – derivatives – prepayment and extension – interest rate |
Global exposure calculation: commitment | Global exposure calculation: commitment |
Investor Considerations Suitability The Merging Fund is suitable for all types of investors through all distribution channels. Investor profile Investors who understand the risks of the Merging Fund and plan to withdraw their money within a period of 3 years. The Merging Fund may appeal to investors who: • are looking for investment growth, • are interested in exposure to developed bond markets. |
Investor Considerations Suitability The Receiving Fund is suitable for all types of investors through all distribution channels. Investor profile Investors who understand the risks of the Receiving Fund and plan to withdraw their money within a period of 3 years. The Receiving Fund may appeal to investors who: • are looking for investment growth, • are interested in exposure to developed bond markets. |