Nordea has posted a notice to shareholders of its intention to merge the assets and liabilities of the Nordea 1 Sicav sub-funds African Equity into the Emerging Markets Focus Equity.
The larger merged fund will provide improved economies of scale as well as being able to offer investors access to a more diversified portfolio. The so-called ‘receiving fund’, which is the Emerging Markets Focus Equity fund, was five star rated by Morningstar as of the end of December 2017, cited as another reason why shareholders could benefit.
Both funds are noted as scoring a ‘6’ on the synthetic risk and reward indicator (SRRI), as well as both being actively managed.
Various share classes such as euro, SEK, NOK, and PLN look set to be retained. Shares in the African Equity fund can be subscribed up to 4 June, but thereafter subscriptions, redemptions or conversions will not be possible.
Morningstar currently lists the African Equity fund with assets valued at around €51m with the euro share class valued at around €32m. The Emerging Markets Focus Equity fund is around $102m in size, with the euro share class valued at around €42m