Changes in the Danske Invest Sustainability Equity Fund
The Danske Invest Sustainability Equity Fund has performed excellently in return comparisons, and the fund's assets have grown above the target size agreed upon with the fund's portfolio manager, Generation Investment Management LLP.
The Danske Invest Sustainability Equity Fund has performed excellently in the class of globally investing equity funds, and it has a full five stars in the Morningstar fund comparison. According to the Mutual Fund Report published by Investment Research Finland (5/2017), it is the best-performing global equity fund measured in terms of five- and ten-year returns. Investors have also shown great interest in the Danske Invest Sustainability Equity Fund, and the fund’s capital has grown by nearly EUR 100 million over the past year. The volume of the fund has reached EUR 250 million, which exceeds the target size agreed upon in advance with the fund’s portfolio manager Generation Investment Management LLP.
In order to protect the fund’s current unit holders and secure the portfolio manager’s operating conditions, Danske Invest Fund Management Ltd has decided to undertake measures to restrict the growth of the fund’s capital. Excessive capital in relation to the fund’s investment strategy could reduce the efficiency of the portfolio management and its ability to execute the agreed investment strategy.
A practical impact of the changes is that on 26 June 2017, the fund’s minimum subscription amount was raised to EUR 250,000 until further notice, and the subscription fee was raised to 2.00 per cent. The subscription fee will be collected from all investors for the time being, and will be added to the fund’s capital. Moreover, it will no longer be possible to subscribe for units in the fund via Danske Bank's eBanking. These changes will have no impact on existing continuous fund saving agreements, and therefore, these agreements will remain in force under the previous terms and conditions. However, it will not be possible to enter into new continuous fund saving agreements with the Danske Invest Sustainability Equity Fund for the time being, nor will it be possible to amend existing agreements. The fund’s use will also be restricted with respect to the insurance policies granted by Mandatum Life Insurance Company Limited in which it has been possible to link the performance of the unit-linked insurance policy to the performance of the Danske Invest Sustainability Equity Fund.
