Danske Invest has decided to proceed with the shift of around 20 funds from their current structure into its SICAV framework. This will enable the unitholders to make an informed judgement of the impact of the transaction on their investment.
Unitholders are also advised to consult their own professional advisers as to the legal, financial and tax implications of the envisaged transaction under the laws of the countries of their nationality, residence, domicile or incorporation.
On February 6, the Danish group said it would undertake two moves to transfer FCP-compliant funds into its Luxembourg vehicle.
The transaction will take place in such a way that each of the FCP sub-funds will be transferred into a SICAV sub-fund as set out in Annex 1 and Annex 2:
– On 10 March 2017 the FCP sub-funds listed in Annex 1 will be transferred into a SICAV sub-fund as set out in Annex 1; and thereafter,
– On 17 March 2017 the FCP sub-funds listed in Annex 2 will be transferred into a SICAV sub-fund as set out in Annex 2.
The SICAV sub-funds are newly set up under Danske Invest SICAV for the purpose of absorbing the respective FCP sub-fund. The main features of each SICAV sub-fund shall be the same as the FCP sub-fund that will be transferred therein, the transfer will not have any material impact on the portfolio of the SICAV sub-funds.
Pursuant to legal and tax changes, in certain jurisdictions and namely in the United Kingdom, the holding and marketing of units in mutual funds, such as Danske Invest has become less attractive to the target investors. These investors tend to favour investments in companies with variable capital, such as Danske Invest SICAV which are not negatively impacted by said changes.
This should positively affect the unitholders of the FCP sub-fund who will thus become shareholders of the SICAV sub-funds at the transaction as they will receive by law more political rights. It will also result in more efficient fund management, while aiding distribution and marketing in impacted jurisdictions.