Nordea 1 – Nordic Corporate Bond Fund will merge with Nordea 1 – European Cross Credit Fund

Nordea 1 – Nordic Corporate Bond Fund* will merge with Nordea 1 – European Cross Credit Fund on 13 September 2016. Both funds are registered in Luxembourg and the supervisory authority in Luxembourg has approved the merger.

The performance of Nordic Corporate Bond Fund has not been as expected. Therefore, it is seen as a better value for the investors if Nordic Corporate Bond Fund is merged with European Cross Credit Fund which has better expectations for the future. 

The merger does not require any action from unitholders. It will take place automatically and will not affect the value of your current holding. Unitholders with general tax liability in Finland will not incur any costs or taxation consequences as a result of the merger.

Implications of the merger to the unitholders in Nordea 1 – Nordic Corporate Bond Fund:

  • Following the merger, you will become a unitholder in the receiving fund in proportion to your current fund holding.
  • The merger will not affect the original acquisition price of your fund units, the amount of your fund savings or your holding period.
  • The fund's risk level will not change (a synthetic risk and reward indicator,“SRRI” of 3)
  • BPQ-EUR units of the fund will become BP-EUR units of European Cross Credit Fund which has an annual management fee of 1.00%. The management fee of BPQ-EUR units has been 0.75%.
  • BI-EUR units of the fund will become BI-EUR units of European Cross Credit Fund which has an annual management fee of 0.50%. The annual management fee of BI-EUR units has been 0.40%.
  • If you had an agreement on regular saving in Nordic Corporate Fund, future subscriptions will be made in European Cross Credit Fund.

Implications of the merger to the unitholders in Nordea 1 – European Cross Credit Fund:

  • The number of unitholders and the capital in the fund in which you hold units will increase.
  • The rules, investment policy, management fee and risk exposure of the fund will remain unchanged.
  • The merger will not affect the original acquisition price of your fund units, the amount of your fund savings or your holding period.

In connection with the merger, unitholders may redeem or switch their fund units free of charge. If you wish to redeem or switch your fund units, please submit your order by 16.30 Finnish time on 5 September 2016. Please note that a redemption or switch of your fund units will result in a capital gain or loss being realised in your taxation.

Further information

For more information on the merger, please read the official notification to the unitholders issued by the fund company based in Luxembourg and the Key Investor Information Document of European Cross Credit Fund.

* Official name in Luxembourg is Nordea 1 – Nordic Corporate Bond Fund – Euro Hedged.

Notice to the unitholders drawn up by the Luxembourg-based management company (pdf, 557 KB)Opens new window

Key Investor Information Document of Nordea 1 – European Cross Credit Fund, BP-EUR (pdf, 126 KB)Opens new window

Key Investor Information Document of Nordea 1 – European Cross Credit Fund, BI-EUR (pdf, 127 KB)Opens new window