INFORMATION BROCHURE NORDIC EQUITIES SWEDEN

Transcription

1 Return NE Sweden NE Sweden This document has been prepared in Swedish INFORMATION BROCHURE NORDIC EQUITIES SWEDEN REGARDING THE INFORMATION BROCHURE This information brochure for Nordic Equities Sweden has been produced in accordance with the Investment Funds Act (SFS 2004:46) and the Swedish Financial Supervisory Authority's Regulations concerning Investment Funds (FFFS 2008:11). REGARDING THE FUND AND THE FUND COMPANY Nordic Equities Sweden (the Fund) is an equity fund in accordance with the Investment Funds Act (SFS 2004:46), and is managed by Nordic Equities Kapitalförvaltning AB (the Fund Company), corporate identity number The Fund Company is keeping a register of unit holders. The Fund's focus and strategy Nordic Equities Sweden is an equities-based fund focusing on the Swedish market. The Fund has a relatively concentrated portfolio and the management does not endeavour to achieve an even sectoral diversification. The Fund's capital may be invested in transferable securities (e.g. equities), money market instruments, derivative instruments, fund units, and deposited on account at credit institutions. The Fund's capital is mainly invested in Swedish financial instruments, or, deposited on a Swedish bank account. Normally more than 90 percent of the capital is invested in equities. No more than 10 percent of the capital may be invested in foreign financial instruments. The Fund Company retains Skandinaviska Enskilda Banken AB as depositary for the Fund, and REVAC Redovisningsbyrå AB for accounting and financial reports. The Fund may be traded through the Fund Company, MFEX, and Avanza. The Fund's strategy is to invest in those securities that the fund management considers most attractive from a market evaluation and growth potential point of view. Based on ongoing evaluation, holdings are increased, decreased or replaced. We look at each stock individually, so called stock picking, which means that we are not dependent on industry weightings NE Sweden 30% 20% 10% 0% -10% -20% THE FUND'S RISK PROFILE Past return is no guarantee as regards future return. Money invested in the Fund may both increase and decrease in value, and there is no guarantee that an investor will recover the entire amount invested. There are the following risk groups, among others: Market risk All investors are exposed to market risk, i.e. that the value of a shareholding may be affected as a consequence of, for example, changes in the economy, interest rates, inflation and geopolitical events. This risk level may be reduced, for example, through geographic and sectoral diversification. Company specific risk The risk associated with a specific company, entailing that the company may perform differently than the market. Currency risk Exchange rate changes may affect the value of a holding. Concentration risk

2 The Fund may have a relatively concentrated portfolio, which may result in higher volatility, compared to traditional securities funds. fee may be charged. Current fee levels and the maximum fee levels, according to the fund rules, are as follow: Liquidity risk The risk that a position cannot be liquidated in time at a reasonable price. External Risk The risk can be divided into business risk, concentration risk, image risk and strategic risk. These risks are particularly relevant for the fund company. Operational risk The risk of losses due to ineffective internal processes and procedures, human error, faulty systems and external events. Since the Fund is an equity fund with a Nordic profile, it will always be a fund exposed to risk. By diversifying the fund investments, by industry and by geography, the risk level can be reduced. Risk Profiling in the fact sheet (KIID) is calculated on volatility and the fund's risk class should be 6 or 7 at times. The Fund's overall risk profile, however, shall be relatively low through well-developed investment methods and safe practices. The Fund invests primarily in large and medium-sized leading Nordic companies which are to traded on a well-regulated market. The holdings will thus be relatively easy to evaluate and follow. 12-months period, is 0 % (maximum 1,5%) respect of fund management, custodian, supervision, auditors, and costs incurred in the protection of the Fund's interests is 1,55 % (maximum 1,55 %) Costs charged to the Fund are outlined in the Annual Report. Further information about the charges can be found in the Fund rules. The fixed fee is calculated daily and charged twice per month. Costs charged to the fund are shown in the Annual Report. In addition to the management fee that the company charges the Fund in accordance with the fund rules, the Fund pays commission in connection with securities transactions. Bank charges can also be charged in some cases. As a result of the fund s broker dealings, the Company may utilize data systems and analysis from the brokers, which are used for managing the Fund. More about the fees is available in the fund rules and additional information may also be obtained from the Company. Trading in derivative instruments and the granting of securities loans may take place in order to render more efficient management of the fund's assets and to protect the fund's assets against currency losses or other risks. Trading options and futures contracts have special features that could lead to substantially higher risks than trading shares. Where derivatives are used in the fund, the total exposure should be calculated according to the commitment approach. Dividends The Fund pays dividends. The aim is to redistribute dividends received by the Fund in the previous year. In the interests of the shareholders, the Board of the Fund Management Company may decide on a higher or a lower amount than the dividends received by the Fund. Guidance for best possible result when placing orders The Company has established internal rules in order to achieve the best results when placing the order. For example it is stated that the transaction will be implemented fairly, under market conditions, and by a well-established broker. Purchases and redemptions New customer: All new customers with the Fund company must complete a new-customer notification with a certified copy of identification attached. For a legal entity, current documentation of the signatories must be attached. Trading fund units: A completed purchasing/redemption notification will be sent to the Fund Company, and, in case of purchasing, paid cash to the fund's account. Fund unit prices cannot be limited. Notification of purchase or redemption of units, and payment, shall be available at the fund company no later than at on the trading date. Immediate redemption is carried out only if it is possible without realizing any of the Fund's holdings. If immediate redemption is not possible the necessary realization of fund units shall be made as soon as possible, and the redemption executed as soon as the Fund has received the liquidity. Minimum deposit: Minimum purchase via the fund company is SEK on the first occasion, thereafter SEK 500 each time. France: The fund may also be traded in France. Here, the fund company uses CM-CIC Securities as Paying Agent and French customers are welcome to buy fund units through them. The contact is taken through the client's French bank. Additional information is available on the Fund's website The fund's current and maximum charges For management of the Fund a fixed fee is charged. Upon purchase and redemption of fund units, an acquisition/exit Fund unit pricing and trading days Fund unit pricing is done every trading day when all the markets in which the Fund invests are fully open. However,

3 the Fund Company has the right to keep the fund open for trading and pricing also on the days when any of the markets in which the fund invests is partly closed. Detailed information about trading days may always be obtained from the Fund Company. The Fund unit's price is determined by the Fund Company on the trading day at 4 pm at the earliest. The valuation of the Fund's financial instruments is done in accordance with Section 8 of the Fund rules. Price information The value of the Fund unit is determined each day when the Fund is open for trading as well as at the end of the month. The fund unit value is published on the website of the Fund Company. Opening and closing of the fund If the Fund s assets exceed SEK 3,000,000,000, the Fund Company shall be entitled to close the Fund from further deposits. This is described in more detail in the Fund Rules. The reasons for closure may, for example, be that the Fund Company believes that too large a fund will make it difficult to adhere to the Fund s objectives and strategy, and therefore be detrimental for the unit holders' return. Tax rules As from January 1, 2012, the Fund is not taxable. Instead, individuals resident in Sweden are obliged to take up a standard capital income of 0.4% of its net asset value at the beginning of the year. Also taxable legal persons who own shares in mutual funds will declare such a standard income, however as income from business activity. Example: If the value of your fund shares is SEK at the beginning of 2012, the standard income is SEK 400. This SEK400 income will be subject to a statement of earnings for 2012 (taxation year 2013). If you have no other capital income or deductions, the capital gains tax will amount to SEK 120 (30%). For dividends received by individuals who are resident in Sweden, the Fund is obliged to withhold preliminary tax. For shareholders who are resident abroad, a coupon tax will be withheld. For individuals who are resident in Sweden, the capital gains tax is currently 30 percent. Capital losses are deductible to varying degrees. Capital gains / losses are reported to the tax authorities. A unit holder's tax may depend on individual circumstances, and investors who are unsure should seek expert help. Ceasing and transferring fund operations If the Fund Company wishes to cease managing the Fund, loses its license granted by the Swedish Financial Supervisory Authority to run operations subject to a license, is liquidated or declared bankrupt, the management of the Fund will be temporarily taken over by the depositary. The depositary shall, following the consent of the Swedish Financial Supervisory Authority, transfer the management to a mutual fund company as soon as possible. In other cases, the Fund will be dissolved and the net balance distributed to the unit holders. Following approval by the Swedish Financial Supervisory Authority, the Fund Company may transfer the management of the Fund to another mutual fund company. Notification thereof must be published in Post- och Inrikes Tidningar (The Swedish Official Gazette), and be kept available at the depositary and the Fund Company as soon as possible. Damages Chapter 2, 21 in the act on investment funds states that: If a unit holder has been inflicted damage by the Fund Company violating this law or the fund rules, the Fund Company will compensate for the damage. If a unit holder or a fund company has been damaged by the Custodian violating this law or the fund rules, the institute shall compensate for the damage. More information is available in 16 of the fund rules. Amendment to the fund rules The Fund Company may, upon approval by the FSA, change the fund rules. Changes may affect the fund's characteristics, such as its investment policy, fees and risk profile. Custodian The fund s custodian is Skandinaviska Enskilda Banken AB, corporate identity number , which is incorporated and headquartered in Stockholm. Its main business is banking and other financial activities. About the Fund Company The fund company Nordic Equities Asset Management Ltd, identity number was founded in 1999 and has its headquarters and offices in Stockholm. The company's share capital is SEK 1,350,000. In 2000, the company obtained permission to manage the fund NE Strategy, and in 2006, received permission to operate as a fund manager. The Management Company currently offers three funds: Nordic Equities Strategy, Nordic Equities Sweden and Nordic Equities Select, and conducts discretionary management as well. Board of directors, executive officers and auditors Fredrik Boström, lawyer, Chairman Jonas Jacobson, Board member Lennart Hager, lawyer, Board member Lars-Olov Olsson, managing director, Board member Lars Kinnunen, customer ombudsman Rune Evertsson, REVAC redovisningsbyrå, risk control manager Mattias Lötborn, KPMG, auditor

4 Supervision The fund and the fund company are under the supervision of Finansinspektionen (The Swedish Financial Supervisory Authority). Assignment agreements The Management Company has entered into the following assignments: the fund. REVAC Redovisningsbyrå Ltd for accounting and financial reporting. About the information brochure The information brochure has been prepared under the Act (2004:46) on investment funds and the regulations on investment funds (FFFS 2008:11). Contact Nordic Equities Kapitalförvaltning AB Grev Turegatan 7, Box 7238, Stockholm, Sweden Phone: Fax: mail@nordeq.se Published: Stockholm April 2015

5 FUND RULES FOR NORDIC EQUITIES SWEDEN 1 The Legal Status of the Investment Fund The name of the fund is Nordic Equities Sweden (the Fund). The fund is a UCITS-fund in accordance with the Investment Funds Act (SFS 2004:46). In addition to the above Act, operations are also conducted in accordance with the Fund Rules, and other regulation based on stipulations in laws or statutes. The Fund cannot acquire own rights, or assume liabilities. The Fund is however an independent taxable entity. Fund assets are owned jointly by the unit holders, and the units in the Fund are of equal size and carry equal rights to the Fund assets. 2 The Fund Manager Nordic Equities Kapitalförvaltning AB (the Fund Company), corporate identity number , manages the Fund and represents the unit holders in all matters concerning the Fund. 3 The Depositary and its Duties The Skandinaviska Enskilda Banken AB (publ.), corporate identity number , is the depositary of the Fund. The duties of the depositary are to receive the Fund's assets and hold them in safe custody, and ensure that the assets in the Fund are received by the depositary without delay. In addition, the depositary shall ensure that the valuation, redemption and sale of fund units, and management of the Fund, are conducted according to law, regulations and the Fund Rules. The depositary shall act independently of the Fund Company, and exclusively in the interests of the unit holders. 4 Nature of the Investment Fund The Fund's objectives and strategy are to invest in those financial instruments that the Fund Company considers most worthy of purchase, based on an assessment of the markets' valuation and growth potential. The Fund is an equity fund focused on the Swedish market. The Fund's capital will mainly be invested in financial instruments listed on regulated marketplaces in Sweden, or, be deposited in a Swedish bank account. Up to 10 percent of the Fund's capital may be invested in other financial instruments, in accordance with 6 of the Fund Rules. The Fund does not endeavour to achieve an even sectoral diversification of investments. The Fund may have a relatively concentrated portfolio, which may result in a higher volatility of the Fund. 5 The Investment Focus of the Fund The Fund's capital may be invested in transferable securities, money market instruments, fund units, and may be deposited on account at credit institutions. 6 The Investment Area of the Fund The capital of the Fund may be invested in financial instruments listed on regulated marketplaces, or equivalent, in Europe and North America. 7 Special Investment Focus The capital of the Fund may not be invested in such assets as referred to in Chapter 5, section 5 of the Swedish Investment Funds Act (SFS 2004:46). Nor may the Fund's capital be invested in OTC derivatives. Trading in the derivative instruments referred to in Chapter 5, section 12 of the Investment Funds Act (SFS 2004:46), and the provision of securities loans, may take place in order to render more efficient management of the Fund's assets, and for the protection of the assets of the Fund against exchange rate losses or other risks. The Fund may not issue put options. 8 Valuation The value of the Fund is calculated by deducting the debts (accrued payments, tax, and other liabilities) from the assets (financial instruments, and liquid assets, including accrued return). The value of a fund unit is the value of the Fund divided by the total number of fund units. The fund unit price is calculated on a daily basis. Financial instruments held by the Fund are valued at market value, i.e. at the most recent price paid, or, in the absence of such a price, at the most recent purchase price. If also such a price is lacking, or if, according to the Fund Company, such prices are misleading, the Fund Company may establish the value based on objective grounds. The time for the daily market valuation of fund units is stated in the information brochure. The pricing information provided to media (or similar institutions) is always to be considered as preliminary, may be subject to change, and is hence not legally binding for the Fund Company. The latest calculated unit price may be obtained from the Fund Company. The calculation of fund units, and the fund unit price, is carried out with at least four decimals. 9 Sale and Redemption of Fund Units Fund units are sold and redeemed by the Fund Company. The fund is open for purchase/redemption every banking day (below referred to as business day). The Fund is however not open for transactions on days when one or more of the markets in which the Fund invests are closed, or partly closed. The Fund Company

6 may however choose to keep the Fund open also on such days. The purchase and redemption price (the fund unit value) are unknown at the time of the purchase and redemption application. The fund unit price is announced on the Fund Company homepage and can be obtained from the Fund Company at the latest five business days after the purchase or redemption has been done. Application to purchase fund units shall be made using the prescribed form. A complete application and payment must have been received by the Fund Company no later than 2 pm on the business day. If either the purchase application, or payment, is received later than 2 pm on the particular business day, the Fund Company nevertheless has the right to decide that a sale may be made on the same day. Once payment has been deposited in the fund account, the purchase may not be withdrawn by the buyer. The purchasing price may not be limited. The minimum initial deposit in the fund is SEK Thereafter the minimum deposit is SEK 500 at a time. The minimum deposit for monthly saving is SEK 500. Application to redeem fund units shall be made using the prescribed form. A complete redemption form must have been received by the Fund Company by 2 pm on the business day. If the Fund Company receives the redemption application later than 2 pm on the business day, the Fund Company nevertheless has the right to decide that the redemption may be executed the same day. Immediate redemption is carried out only if it is possible without realizing any of the Fund's holdings. If immediate redemption is not possible the necessary realization of fund units shall be made as soon as possible, and the redemption executed as soon as the Fund has received the liquidity. A redemption request may only be cancelled if the Fund Company approves the cancellation. The redemption of units may not be restricted in terms of price. The minimum redemption amount is SEK 500, or, in the case the value of the unit holder's holdings is less than SEK 500, the unit holder's total holding. The liquidation amount is payable to a bank account at the unit holder's disposition. This does apply also to under age unit holders. 10 Possibility to Invest in the Fund In order to implement the Fund's strategy and objectives, the Fund Company has the possibility, in the event the Fund's value exceeds SEK , to decide that new subscription may not take place. The Fund may also be closed with regards to entry and exit upon the occurrence of such extraordinary circumstances that unable a valuation of the Fund's assets in a manner which guarantees the equal rights of unit holders. 11 Charges and Compensation For applicable fees, please see the separate sheet appended to the information brochure. The purchasing price of a fund unit amounts to the closing value of the fund unit on the acquisition day, with the addition of an acquisition charge up to a maximum of 3.0 percent of the fund unit s value. The redemption price of a fund unit amounts to the value of the fund unit on the redemption date, less a redemption commission not exceeding 1.5 percent of the value of the fund unit. Compensation may be paid to the Fund Company from the Fund's capital. The fixed compensation to the Fund Company in respect of management of the Fund, custody of the assets of the Fund, supervision, audit, and costs incurred in the protection of the interests of the Fund, such as legal fees, shall be calculated daily and may, on an annual basis, not exceed 1.55 percent of the value of the Fund. The compensation is withdrawn from the Fund each month. Commission, bank charges, and other transaction costs are paid by the Fund, and are payable in addition to the stated above. Where appropriate, value added tax applicable is payable on all compensation. 12 Dividends The Fund distributes dividends to the unit holders and such distribution shall take place each September following the expiry of the financial year. The amount that can be issued as dividend is calculated as the Fund's profit according to the income statement for the financial year, to the extent that this constitutes taxable profit for the fund, with the addition of taxable standard revenues and, where appropriate, the remaining outstanding amount from the previous year's dividend. Accrued dividend paid in at the time of purchase of fund units may be added to the dividend, and accrued dividend paid out at the time of redemption of fund units may be subtracted. Dividend is due to unit holders who, on the dividend date established by the Fund Company, are registered unit holders. Dividends due on the fund units will, following deduction of preliminary tax, be issued in the form of new fund units allocated to the unit holder. Unit holders who wish to receive dividends in cash must notify the Fund Company thereof on a form provided by the Fund Company no later than 31 July of the year following the expiry of the financial year. In case the Fund Company receives an application for cash dividends later than the aforementioned date, the Fund Company is nevertheless entitled to approve cash dividends. 13 The Fund's Financial Year The Fund's financial year is the calendar year.

7 14 Half-yearly Accounts and Annual Report, Amendment of the Fund Rules The Fund Company is to produce half-yearly accounts and an annual report for the fund within two and four months following the close of the half-year and financial year respectively. The half-year accounts and annual report may be obtained from the Fund Company and the depositary, and are sent upon request to unit holders. In case the Fund Company should decide to amend the Fund Rules, the decision shall be submitted to the Swedish Financial Supervisory Authority for approval. The decision is to be made public by being obtainable from the Fund Company and the depositary, and will be notified in the way the Swedish Financial Supervisory Authority decides. Should the Fund Company or the depositary be prevented from implementing a measure, in whole or in part, due to circumstances specified in the second paragraph of this section, such a measure may be postponed until the cause of prevention has ceased. Neither the Fund Company, nor the depositary, shall pay penalty interest in the event of deferred payment. For further information regarding the Fund Company's liability in damages, reference is made to Chapter 2, section 21 of the Investment Funds Act (SFS 2004:46). This is an approximation and not a legal translation of the Swedish formal version. The Swedish version has been approved by the Swedish Financial Supervisory Authority The English version has not been verified or approved. 15 Pledging and Assignment Fund units may not be pledged. Assignment of fund units is subject to the Fund Company's consent. Such consent shall be granted by the Fund Company provided the assignment takes place for the implementation of a division of marital property, inheritance, or relates to an assignment between different legal entities within the same group. Other assignments may be allowed in exceptional cases. Upon the assignment of fund units, the assignee shall assume the assignor's acquisition value in respect of the fund units. The Fund Company shall be entitled to compensation for the cost incurred by an assignment, nominee-registration, and re-registration. 16 Other Important Information Neither the Fund Company, nor the depositary, are responsible for damages resulting from Swedish or foreign legal enactment, the measures of Swedish or foreign authorities, acts of war, industrial action, blockade, boycott, lockout, or any other similar circumstance, for example external data or telecommunications related faults. In the event of industrial action, blockade, boycott or lockout, the above applies also if the Fund Company or depositary is the object of, or initiates, such measures of conflict itself. Damages arising from other circumstances will not be compensated by the Fund Company or depositary, if they have exercised due prudence. Neither the Fund Company, nor the depositary, is in any circumstances liable for indirect damages. Neither the Fund Company, nor the depositary, is responsible for damages caused by market place, deposit bank, central depositor of securities, clearing organisation, or other assignees that the depositary with due care has appointed, or, that has been designated by the Fund Company. Neither is the Fund Company, nor the depositary, responsible for damages arising from restrictions in the right of disposition that may be applied against the depositary in terms of financial instruments.