Investment fund rule changes of Danske Invest mutual funds

At its meeting on 9 December 2015, the Board of Directors of Danske Invest Rahastoyhtiö Oy decided to change the rules of the following investment funds:

– Danske Invest Bond Fund 1) 2)
– Danske Invest Euro Corporate Bond Fund 2)
– Danske Invest Euro Government Bond Index Fund 1)
– Danske Invest Euro High Yield Fund 2)
– Danske Invest European Balanced Fund 1) 2)
– Danske Invest Government Bond Fund 1)
– Danske Invest Institutional Bond Fund 1) 2)
– Danske Invest Institutional Liquidity Fund 1) 2)
– Danske Invest Institutional Liquidity Plus Fund 1) 2)
– Danske Invest Liquidity Fund 1) 2)
– Danske Invest Money Market Fund 1) 2)
– Danske Invest Neutral Fund 1)
– Danske Invest Sustainability Bond Fund 2)
 
The rule changes were confirmed by the Financial Supervisory Authority on 17 February 2016. The changes will take effect on 28 April 2016.
 
The rules of the aforementioned funds marked with the number 1 now include the option for investing in credit default swaps to hedge the fund portfolio and to make portfolio management more effective.
 
The rules of the aforementioned funds marked with the number 2 now include a clarification: previously, the rules said that the issuer’s credit rating is the main basis of evaluating the credit ratings of each fund investment object. However, now the rules say that the main basis consists of the credit rating of the instrument that is invested in. In addition to the aforementioned changes, the Fitch credit rating (mentioned in the respective rules of each fund) can be used as each fund's credit rating alongside Moody’s and Standard & Poors.
 
In addition, the rules of all of the aforementioned funds were updated according to the UCITS IV directive and the amendment to the Finnish Securities Markets Act. The rule changes will not cause any substantial changes to the profit goal and risk profile of the funds.
 
The rule changes do not require share owners to take any action and they do not have an impact on fund share value or fund investment policy.
 
Danske Invest Rahastoyhtiö will also inform fund share owners about the rule change in Helsingin Sanomat and Hufvudstadsbladet.
 
The new rules, taking effect on 28 April 2016, will be available as of 23 March 2016 on the www.danskeinvest.fi website, Danske Bank branches and Customer Service at 0200 2590, Monday–Friday, 9 am–4 pm (local/mobile charges apply).