ANNOUNCEMENT: Progress in the Liquidation of the Danske Invest Russia Fund
The liquidation process of the Danske Invest Russia Fund, which was terminated in April 2022, has advanced with the sale of shares in one portfolio company. Danske Invest Fund Management Ltd aims to distribute the proceeds from the sale of these shares to unitholders by the end of March 2025.
Background of the Liquidation
On 7 April 2022, the board of Danske Invest Fund Management Ltd decided to terminate the Danske Invest Russia Fund. The decision was influenced by the military actions initiated by Russia in Ukraine and the immediate operational impacts related to the fund’s investment activities, as well as Danske Invest’s commitments and principles associated with responsible investments.
Read more: ANNOUNCEMENT: Termination of a fund managed by Danske Invest Fund Management Ltd.
Progress of the Liquidation Process
Danske Invest Fund Management Ltd. distributed the cash held by the fund at the time of liquidation and the proceeds from the sale of non-Russian securities owned by the fund to unitholders in September 2022. Sanctions imposed by Western countries and operational challenges in the Russian stock market have delayed the completion of the liquidation process. However, in December 2024, the fund management company was able to successfully sell shares in Nebius Group NV, a Dutch company listed in the United States and which was not any more subject to sanctions. The management company is now preparing to make the second outpayment to the unitholders of the fund and the payment is anticipated to take place by 31 March 2025.
Execution of Payment and Impact on Unitholders
- The payment will be executed as a normal redemption transaction, in which 25% of the unitholder’s remaining fund units are redeemed.
- The unitholder will receive a payment corresponding to their share of the fund’s current cash assets.
- The unitholder’s remaining fund units will still entitle them to a proportional ownership of the fund’s remaining assets.
- The redemption of fund units will realise any possible capital gains or losses for those generally liable to pay tax in Finland, depending on the original purchase price of the units.
- The fund management company will provide normal contract notes to the unitholders and reports to the Finnish the Tax Authorities.
What is the current status of my fund holdings?
The Russian stock market has remained largely unchanged in terms of operational challenges, and it is still not possible to sell the equities and equity-linked securities owned by the fund or to repatriate cash located in Russia.
Unrealised securities owned by the fund are still held in the fund’s name by funds custodian, and the fund units still entitle unitholders to a proportional ownership of the fund’s remaining assets. The securities owned by the fund will be sold and the proceeds distributed to unitholders when it becomes operationally feasible. You can find the status of the fund’s holdings as of 31 December 2024 via the link below.
Read more: Danske Invest Russia – Holdings as of 31 December 2024
Where can I find more information about the termination of the fund?
The fund management company will provide updates on the progress of the fund’s liquidation process on its website at www.danskeinvest.fi.
Best regards,
DANSKE INVEST FUND MANAGEMENT LTD
