• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      International Investment Nordic Forum 2021

      International Investment is delighted to announce the 2021 International Investment Nordic Forum which will take place on Tuesday March 9, at 9am (GMT). This curated virtual event will be broadcast live and will feature a series of fund manager interviews and presentations, as well as interviews with some of the Nordic regions top fund selectors.

      • Date: 09 Mar 2021
      • ONLINE, ONLINE
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Equities

Jarle Sjo leaves, Odin warns of new tax regime

  • Jonathan Boyd
  • Jonathan Boyd
  • 22 December 2015
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Odin, the Norwegian asset manager owned by Sparebank 1 Gruppen AS, has announced that one of its best known portfolio managers Jarle Sjo is leaving by the end of the year, while Norwegian investors generally face a new tax regime that could hit returns.

Sjo, the manager of the Norge, Norden and Aksje funds, became investment director in December 2011. He is particularly well known in the Norwegian and wider Nordic region for his insight into the shipping and offshore sectors – shipping and offshore services collectively form a significant part of the Oslo stock market because of the link to the country’s offshore oil and gas industry.

Related articles

  • Norway's Odin buying on market fears
  • Odin Norden passes NOK10bn AUM
  • Norway's Odin picks government fund head to be new chief executive
  • SpareBank 1 appoints Odin manager to build equity fund capabilities

In a statement, Odin said that the departure was down to a “different view of the company’s further development”, and so he had decided to depart at the end of the year. Rune Selmar, CIO, will run the Odin Norge fund until a new manager is appointed.

Tax warning

Odin has included a warning in its Christmas message to clients about the effects of new tax law in Norway on investment funds.

The new law takes effect on 1 January, which is expected to lead to lower levels of tax on interest income, but higher taxes on gains from equities. The changes stem from the Norwegian government’s policy of seeking to lower taxes more generally on earnings, both for individuals and companies. However, this is not the case for gains earned from equity holdings, Odin suggests.

The tax changes will also hit balanced funds in another way. That part of the total return that comes from equity exposure will be considered earnings from equity holdings and be taxed at a rate of 28.75%, but returns from the interest element will be treated as interest based earnings, and be taxed at a rate of 25%.

The equity portion of the balanced portfolio will be treated with an effective flat tax rate, which will be reset each year on 1 January, and therefore will not take into account adjustments to the equity portion during the year.

“This means that the equity and fixed income parts are not necessarily in accordance with the fund’s real share of equity and fixed income returns. Over time the setting of the [flat tax] will lead to part of the fund’s equity returns being taxed as returns from interest at the customer level. For retail clients his will be beneficial, but detrimental to business clients,” Odin said.

As a result of these changes, Odin has urged investors in its balanced funds to consider switching to either pure equity or pure fixed income funds – in its case possibly to the underlying funds used by its balanced portfolio Kombinasjonsfond.

It is also urging investors who are uncertain of the impact on their tax position to consider taking advice from tax advisers.

 

 

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Equities
  • Fixed Income
  • Nordic
  • Equities
  • Fixed Income
  • Norway
  • ODIN Fund Management
  • People moves

More on Equities

Comment: Navigating equity markets in the year ahead

  • Comment
  • 21 January 2021
M&G taps Value Partners for £500m Chinese equities mandate

  • Equities
  • 16 December 2020
Global equities tumble on covid-19 fears and US jitters

  • Equities
  • 27 October 2020
BMO Global AM launches sustainable equity fund in China

  • ESG
  • 25 August 2020
HSBC Singapore launches first AI-powered equity index structured note

  • Equities
  • 13 August 2020
Back to Top

Most read

More than 250,000 expats left Saudi Arabia in 3Q2020
More than 250,000 expats left Saudi Arabia in 3Q2020
FSCS warns industry of £1bn compensation bill
FSCS warns industry of £1bn compensation bill
Dubai regulator to develop cryptocurrency framework
Dubai regulator to develop cryptocurrency framework
Jersey Finance partners with Durrell trust to launch global rewilding fund
Jersey Finance partners with Durrell trust to launch global rewilding fund
Aegon UK partners HSBC Global AM to embed ESG across in-house default funds
Aegon UK partners HSBC Global AM to embed ESG across in-house default funds
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading