Danske Invest - Fund mergers
Unit-holders are not required to take any action in connection with these amendments, and the amendments will not give rise to any costs or tax consequences for unit-holders liable to tax in Finland.
Danske Invest Fund Management Ltd seeks to streamline its selection of funds registered in Finland. Involving the following funds, the mergers and amended regulations approved by the Financial Supervisory Authority will enter into force on 21 April 2017.
| MERGING FUND | ACQUIRING FUND |
| Danske Invest Arvo Russia Value Fund | Danske Invest Russia Fund |
| Danske Invest Russia Small Cap Fund | Danske Invest Russia Fund |
| Danske Invest Real Estate Fund | Danske Invest European Equity Fund |
| Danske Invest Nordic Opportunities Fund | Danske Invest European Equity Fund |
| Danske Invest Golden Piggy Bank Fund | Danske Invest Compass 75 Fund |
| Danske Invest Nordic Small Cap Fund | Danske Invest Europe Small Cap Fund |
| Danske Invest Finland High Dividend Fund | Arvo Finland Value Fund (in the future: Danske Invest Finland Dividend Plus Fund) |
Through the merger, Danske Invest’s intention is to increase the average size of the managed funds by decreasing the number of funds that customers have shown less interest in. The aim of this is to improve efficiency both in administration and in portfolio management.
Unit-holders are not required to take any action in connection with these amendments, and the amendments will not give rise to any costs or tax consequences for unit-holders liable to tax in Finland. Depending on your own country of residence, merger may have an impact on your investment or your personal tax position. For further details, please consult your local tax adviser.
The regulations of the acquiring funds will undergo technical amendments at the merger. In addition to regulatory amendments, the regulations of the Arvo Finland Value Fund will be amended due to changes in its investment policy and fees.
Key changes:
- The fund’s name will be changed to better correspond to its new investment policy. The fund’s new name will be Danske Invest Finland Dividend Plus Fund.
- Section 5 regarding the investing of assets in the fund will be amended by eliminating the reference to value companies. A more detailed investment policy of the fund is presented in the key investor information document of the fund.
- Section 10 regarding the payments made from the fund assets will be amended so that the references to the performance fee are eliminated. In the future, Danske Invest will only be compensated in the form of the fixed management fee which is 1.50 per cent after the merger as indicated in the price list for the funds.
The holders of units in the fund are entitled to redeem or switch their units without any fees until 1 pm on Thursday, 20 April 2017. The redemption and switch will have normal tax consequences. No orders related to the merging funds can be given after 1 pm on Thursday 20 April 2017 whereas the acquiring funds are open for normal orders. After the implementation of the merger, the fees of the acquiring fund will apply. Danske Invest will send information regarding these amendments by mail to the unit-holders.
The risks and characteristics of the acquiring funds are specified in detail in their regulations and the key investor information document. We would like you to read the regulations, the key investor information documents and price list that are available at all Danske Bank and Danske Bank Private Banking branches, from our customer service, phone +358 200 2590 (local network charge/mobile phone charge) Mondays to Fridays from 9 am to 4 pm and at www.danskeinvest.fi starting from 20 March 2017.
