Notice to the unitholders of Nordea 1 - European Opportunity Fund and Nordea 1 - European Value Fund
Nordea 1 - European Opportunity Fund will merge with Nordea 1 - European Value Fund on
29 June 2016. Both funds are registered in Luxembourg and the supervisory authority in Luxembourg has approved the merger.
The funds are being merged because the capital held by European Opportunity Fund, which is the merging fund, has decreased to the extent that efficient portfolio management is no longer possible. Pooling the capital of the two funds, which have similar investment policies, into a single fund will provide economies of scale that are expected to enable lower costs in relative terms, to the benefit of the unitholders.
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 - European Opportunity 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 slightly decrease from a synthetic risk and reward indicator (SRRI) of 6 to 5.
- The fund’s management fee will not change.
- If you had an agreement on regular saving in European Opportunity Fund, future subscriptions will be made in European Value Fund.
Implications of the merger to the unitholders in Nordea 1 - European Value Fund:
- For you this means that 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 European Value Fund will remain unchanged.
- The merger will not have any material impact on the portfolio of the European Value Fund and it is not intended to undertake any rebalancing on the portfolio of the European Value Fund before or after the merger.
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 21 June 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.
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 Value Fund.