Amendments to the regulations of the Arvo Euro Value Fund , Arvo Nordic Value Fund and Danske Invest Euro Interest Fund
At its meeting of 21 December 2011, the Board of Directors of Danske Invest Fund Management Ltd resolved to amend the regulations of the Danske Invest Euro Interest Fund, Arvo Euro Value Fund and Danske Invest Arvo Nordic Value Fund.
The amendments to the regulations were approved by the Finnish Financial Supervisory Authority on 23 March 2012 (20 February 2012 Danske Invest Euro Interest Fund) and will enter into force on 20 June 2012.
Arvo Euro Value Fund’s investment operations
As a result of the amendments to the regulations of the Arvo Euro Value Fund, the value strategy which has been the fund’s investment strategy will be changed to a dividend strategy. The aim of the amendment is to improve the effi ciency of portfolio management which will enable us to seek better returns for unit holders. Value companies are defi ned as companies whose market value is low in terms of their price-to-book ratio (P/B ratio). The dividend strategy allows investments to be made in companies that focus on dividend payment as well as in value companies, and therefore, the fund’s investment universe will expand as a result of the amendment, offering a more comprehensive selection of investments.
The fund’s performance-based fee will be removed, and the management fee will be 1.6% (p.a.)* in the future, making the fund’s fee structure consistent with the rest of the fund selection. The Arvo Euro Value Fund’s benchmark index will be changed to an unoffi cial benchmark index, and as a consequence, references to the benchmark index will be removed from the fund’s regulations. The Arvo Euro Value Fund’s new, unoffi cial benchmark index will be the MSCI Daily TR Net Europe index. The amendments to the regulations will not cause any signifi cant changes to the Arvo Euro Value Fund’s return objective or risk profi le. The recommended investment horizon in the fund is still more than fi ve years.
The fund’s new name is Danske Invest Europe High Dividend Fund
The name of the Arvo Euro Value Fund will change in conjunction with the amendment to the regulations. The Fund’s new name is Danske Invest Europe High Dividend Fund.
Arvo Nordic Value Fund’s investment operations
As a result of the amendments to the regulations of the Arvo Nordic Value Fund, the value strategy which has been the fund’s investment strategy will be changed to a strategy focusing on small-cap companies in the Northern region. The aim of the amendment is to improve the effi ciency of portfolio management which will enable us to seek better returns for unit holders. The strategy focusing on small-cap companies in the Northern region will help us to cater to the growing demand for the region’s
investment opportunities and allow us to utilise Danske Capital’s and Sampo Bank’s strong know-how in the area’s equity markets.
The fund’s performance-based fee will be removed, and the management fee will be 1.6% (p.a.)* in the future, making the fund’s fee structure consistent with the rest of the fund selection. The Arvo Nordic Value Fund’s benchmark index will be changed to an unoffi cial benchmark index, and as a consequence, references to the benchmark index will be removed from the fund’s regulations. The Arvo Nordic Value Fund’s new, unoffi cial benchmark index will be the VINX Small Cap NI index. The amendments to the regulations will not cause any signifi cant changes to the Arvo Nordic Value Fund’s return objective or risk profi le. The recommended investment horizon in the fund is still more than fi ve years.
The fund’s new name is Danske Invest Nordic Small Cap Fund
The name of the Arvo Nordic Value Fund will change in conjunction with the amendment to the regulations. The fund’s new name is Danske Invest Nordic Small Cap Fund.
* Unfortunately there was an error in the newspaper advertisement and customer letters on 19 May 2012 regarding the management fees of the Arvo Euro Value Fund and Arvo Nordic Value Fund. In contrast to what was stated earlier, the management fee will be 1.75% (p.a.) as of 20 June 2012.
Danske Invest Euro Interest Fund’s investment operations
The Danske Invest Euro Interest Fund’s regulations have been amended to correspond with the European defi nition of money market funds. The aim of the new definition is to increase market transparency, improve investor protection and harmonise money market funds in Europe. The amendments to the fund’s regulations include changes concerning the key fi gures that measure interest rate risk and credit risk and the credit rating requirements of the fund’s investments. The amendments reduce the average remaining time to maturity of the fund’s investments and the permitted interest rate risk.
The amendments to the regulations will not cause any signifi cant changes to the Danske Invest Euro Interest Fund’s return objective or risk profi le. The recommended investment horizon in the fund will remain more than one month. The name of the Danske Invest Euro Interest Fund will also change. The fund’s new name will be Danske Invest Money Market Fund.
Fund unit holders are not required to take any action in connection with the amendments to the regulations of the Danske Invest Euro Interest Fund, Danske Arvo Euro Value Fund and Danske Arvo Nordic Value Fund.
