Notice to the unitholders of Nordea 1 - Latin American Equity Fund
Nordea 1 - Brazilian Equity Fund will merge with Nordea 1 - Latin American Equity Fund on 22 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 Brazilian Equity 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 you. The merger will take place automatically and will not affect the value of your current holding.
- For you this means that the number of unitholders and the capital in the fund in which you hold units will increase.
- The merger will not affect the original acquisition price of your fund units, the amount of your fund savings or your holding period.
- The merger will not have any material impact on the portfolio of the Latin American Equity Fund and it is not intended to undertake any rebalancing on the portfolio of the Latin American Equity Fund before or after the merger.
- The rules, investment policy and risk exposure of Latin American Equity Fund will remain unchanged.
- The current management fee of the Latin American Equity Fund is 1.85% p.a.. However, the management fee of the Latin American Equity Fund will be lowered to 1.60% p.a. on 22 June 2016, being the effective date of the merger.
- Unitholders with general tax liability in Finland will not incur any costs or taxation consequences as a result of 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 in Latin American Equity Fund, please submit your order by 16.30 Finnish time on 14 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 Latin American Equity Fund.