IMPORTANT NEWS ABOUT YOUR DANSKE INVEST ALLOCATION INVESTMENT

Transcription

1 IMPORTANT NEWS ABOUT YOUR DANSKE INVEST ALLOCATION INVESTMENT Luxemburg, 23 May 2018 Dear Sharehlder, We are pleased t annunce a milestne in the histry f Danske Invest Allcatin and in the way we cmmunicate with yu, ur sharehlders. We have decided t cmpletely transfrm the Danske Invest Allcatin s current prspectus, with the gal f making it mre user-friendly. This new versin is significantly shrter, better rganised, and easier t read and understand. Even thugh the new prspectus is very different as a dcument, nthing abut yur investment itself has changed. Matters such as investment plicy and risks remain the same as befre (hwever, rephrased), and fees remain at the same levels, except fr sme changes explained belw and in the appendix t this letter. The substantive equivalency f the tw dcuments has been validated by ur internal subject matter experts and by Danske Invest Allcatin s legal cunsels. In additin, the Luxemburg regulatr, the Cmmissin de Surveillance du Secteur Financier (CSSF), has apprved the new prspectus. Any terms used in this letter that are defined in the new prspectus carry the definitin prvided there. Main Features f the New Prspectus New terms Previusly, the prspectus referred t the individual funds as Sub-Funds and the umbrella structure hlding them as the Fund. Hwever, in cmmn usage, Sub-Funds are ften referred t as funds. T eliminate this cnfusin, we nw call the umbrella structure the SICAV and the individual funds are called funds. Unifrm descriptins f funds Each f the funds is described in a cmparable way n its wn page (smetimes tw pages) in a sectin called Fund Descriptins. General infrmatin appears in all ther sectins. Risk definitins mved t end f sectin T avid repeating risk infrmatin fr each fund, the new prspectus lists the relevant main risks fr each fund in that fund s descriptin, and the definitins f the risks nw appear fllwing the last fund descriptin. Up-t-date infrmatin n available share classes mved t the website The prspectus still includes cst infrmatin fr the main classes f shares, but ISIN cdes, initial issue prices and launch dates are nw available at danskeinvest.cm. Maximum fees instead f actual fees There has been n change in the actual fees, but the new prspectus will list maximum fees instead f actual fees. Shuld there be any increase in actual fees, sharehlders will receive advance ntice as well as the pprtunity, during a 30-day perid, t switch r redeem their shares withut charge prir t the new fees ging int effect. Swing pricing A pssibility t use s-called swing pricing is intrduced in Danske Invest Allcatin s prspectus. Swing pricing means that n business days when trading in a fund s shares will require net purchases r sales f prtfli investments exceeding a certain percentage f the fund s net assets (as set by the management cmpany and apprved by Danske Invest Allcatin), a fund s NAV may be adjusted. This adjustment reflects an assessment f the verall csts incurred in buying and selling investments t satisfy subscriptins r redemptins f shares (understanding that a fund generally maintains adequate daily liquidity t handle rdinary cash flws with little r n impact n rdinary investment peratins). Swing pricing is intended t reduce the impact f these csts n sharehlders wh are nt trading their shares at that time. In general, the NAV will be adjusted upward when there is strng demand t subscribe fr fund shares and dwnward when there is strng demand t redeem fund shares. Swing 1 P age

2 pricing adjustments are autmatic and are applied systematically by cmputatin. Threshlds and adjustment percentages can vary by fund, but the adjustment will nt be larger than 2% f NAV fr all share classes within a fund. In extrardinary situatins the management cmpany can raise this limit t prtect the interests f sharehlders. Currently, n fund use swing pricing. The financial reprt f the Danske Invest Allcatin will specify which funds use swing pricing, if any. Aligned investment bjectives Investment bjectives have been rephrased in rder t create mre cnsistency acrss the funds. This will hwever nt result in any change f the actual bjectives r the manner the investment strategies are carried ut. Fund-specific changes There are certain changes that apply t particular funds. These are detailed n the pages 3 and 4. Please nte that investrs in the funds Dynamic and Stable Incme cncerned by the change detailed under item 2 belw have the right until clse f business n 31 July 2018 t request the full redemptin free f charge r cnversin f their shares int any ther fund within Danske Invest Allcatin free f charges. The new prspectus applies frm 1 June 2018, except fr certain changes which apply frm the dates indicated in the appendix. Bth the new prspectus as well as the relevant Key Investr Infrmatin Dcuments (KIIDs) are available nline at danskeinvest.cm and free f charge at the registered ffice f the Danske Invest Allcatin. Yurs faithfully, The Bard f Directrs Danske Invest Allcatin 13, rue Edward Steichen L-2540 Luxemburg 2 P age

3 FUND-SPECIFIC CHANGES 1. Change f fee structure fr the funds Dynamic and Equity Opprtunities As per the current prspectus, the funds pay t the management cmpany a management fee, a perfrmance fee and administrative expenses. The administrative expenses cver remuneratin t the depsitary, the central administratr, the principal paying agent and dmiciliary agent. Besides this, the funds pay ther csts (tgether referred t belw as ther csts ) such as remuneratin t the registrar agent, taxes levied n the assets f the funds and its incme, ut-f-pcket fees, cst f printing, preparing, translating and distributing financial reprts, articles, KIIDs and prspectus, fees f registratin, fees f auditr, csts f publishing the net asset value and ntices, ther administratin and publicatin expenses arising frm the funds peratins, risk and cmpliance mnitring supprt, remuneratin f the bard f directrs, csts assciated with peratin and distributin. As frm 1 June 2018, the management cmpany will take ver the payment f such ther csts and the funds payment f these ther csts will be replaced by a fixed fee t the management cmpany fr each fund. The administrative expenses will therefre be replaced by a new charge called perating and administrative expenses. The perating and administrative expenses fee will, fr each fund, be set at a level which, based n the level f asset under management as f 1 June 2018, crrespnds t the administrative expenses plus ther csts that the fund has paid histrically (2016 and 2017). This change f fee structure will be cst neutral fr the funds at the current level f asset under management. If the level f asset under management increases, the amunt paid by the funds in relatin t these ther csts will als increase, but if the level f assets under management decreases, the amunt paid by the funds will als decrease. The fact that the perating and administrative expenses are a fixed percentage means that the management cmpany is entitled t keep any prtin f the fee that remains unused at the end f the financial year and is bligated t cver any verages that exceed the fee amunt. The funds will cntinue, as befre, t pay brkerage and bank charges incurred n business transactins and securities trades and ther transactin-related expenses, as well as extrardinary expenses, such as any legal r ther expertise needed t defend the interest f the sharehlders. The prspectus will display a maximum level f administrative and perating expenses as fllws: Dynamic: 0.40% fr all share classes Equity Opprtunities: 0.40% fr all share classes The actual level f administrative and perating expenses is as fllws: Dynamic: 0.33% fr all share classes Equity Opprtunities: 0.40% fr all share classes 2. Change f hurdle rates and use f flr used when calculating perfrmance fees f the funds Dynamic and Stable Incme With the aim f aligning the hurdle rates used t calculate perfrmance fees acrss currencies fr funds managed by Danske Invest Management Cmpany, the hurdle rates used fr the funds Dynamic and Stable Incme will change as fllws n the dates indicated in the table: Class currency Until 31July 2018 As frm 1 August 2018 DKK Stable Incme: 3 mnth Cpenhagen Stable Incme: Tmrrw/Next Interbank Offered Rate (CIBOR3M) Interest Rate (DETNT/N*) EUR Dynamic: Eurpean Central Bank s Dynamic and Stable Incme: EMMI lending rate (rep rate) EURO Overnight Index Average Stable Incme: 3 mnth Eur (EONIA*) Interbank Offered Rate 3 P age

4 (EURIBOR3M) NOK Stable Incme: 3 mnth Osl Interbank Offered Rate (OIBOR3M) SEK Stable Incme: 3 mnth Stckhlm Interbank Offered Rate (STIBOR3M) *Blmberg ticker Stable Incme: Nrwegian Overnight Weighted Average Rate (NOWA*) Stable Incme: Stckhlm Interbank Offered Rate T/N (STIB1D*) At the same time as the new hurdle rates will becme effective, the Bard f Directrs has decided until further ntice t intrduce a zer percentage flr fr currencies, where the actual rate wuld be negative. This will have a psitive impact (less perfrmance fees charged) n currencies where the actual rate is negative and a zer impact n currencies where the actual rate is psitive. Investrs in the funds Dynamic and Stable Incme, have the right until clse f business n 31 July 2018 t request the full redemptin free f charge r cnversin f their shares int any ther fund within Danske Invest Allcatin free f charges. If the Bard f Directrs decide at a later stage t remve the zer percentage flr, investrs in the funds Dynamic and Stable Incme will be given 30 days ntice with the right t request full redemptin free f charge r cnversin f their shares int any ther fund within Danske Invest Allcatin free f charges. 3. Descriptin f Perfrmance Fee fr the funds Dynamic and Stable Incme The prspectus explanatin f the perfrmance fee has been made mre descriptive. This will hwever nt result in any change in the way perfrmance fees are calculated r paid. 4. Changed prcessing schedule f subscriptin, switch and redemptin rders fr the funds Hrisnt Aktie, Hrisnt Balanserad, Hrisnt Försiktig, Hrisnt Offensiv, Hrisnt Ränta Investrs in funds mentined abve will be allwed t subscribe, switch and redeem shares in the funds n all days when banks are pened in Sweden. Currently, the net asset values f the funds mentined abve are calculated n business days in Luxemburg except when banks are clsed in Sweden. Cut-ff fr subscriptin, switch and redemptins are n the same day as the rders are prcessed. In rder t facilitate calculatin f net asset value and prcessing f rders n all business days in Sweden, RBC, the fund s depsitary and fund accuntant, has agreed t calculate the net asset values n all days when banks are pened in Sweden (meaning that NAV a net asset value will be calculated if banks are pened in Sweden but clsed in Luxemburg). New prspectus text: Subscriptins, switches and redemptins Orders received and accepted by the registrar agent by 2:00 PM CET n any day that is a business day in Sweden (r by AM CET n any day which banks are pen half a day in Sweden) are rdinarily prcessed the same day. 5. Changed prcessing schedule f subscriptin, switch and redemptin rders fr the funds Dynamic and Equity Opprtunities Investrs in funds mentined abve will be allwed t subscribe, switch and redeem shares in the funds n all business days in Luxemburg. Currently, the net asset values are calculated weekly and the cut-ff fr subscriptin, switch and redemptin requests are tw business days prir the rder prcessing day. New prspectus text: Subscriptins, switches and redemptins Orders received and accepted by the registrar agent by 5:30 PM CET any business day in Luxemburg are rdinarily prcessed tw business days later. 6. Clarificatin f investment plicy in the fund Dynamic 4 P age

5 The fund can invest thrugh UCITS (including UCITS ETFs) r UCIs in equities and equity-related securities. The fund's investment plicy descriptin has been clarified as fllws: Current text: Up t 80% f the ttal assets f the Sub-Fund can be invested, thrugh funds, in internatinal equities. New prspectus text: Specifically, the fund may invest up t 80% f net assets in equities and equity-related securities thrugh UCITS (including UCITS ETFs) r UCIs. 7. Mre precise explanatin f prtfli hedging Sme funds invest in r hedge their prtflis t the fund s base currency. In rder t prvide mre precise infrmatin, the relevant prspectus text have been rephrased as fllws: Hrisnt Balancerad, Hrisnt Försiktig, Hrisnt Offensiv, Hrisnt Ränta, Current text: The Sub-Fund must hedge at least 90% ptential FX risk in regards t its fixed incme investments. New prspectus text: At least 90% f the fund s investments in debt securities and ther funds hlding debt securities are denminated in, r hedged int, SEK. Hwever, currency risk can still arise frm any nn-sek debt securities held by underlying funds. June Balanced, June Defensive, June Mderate, June Mderate Shrt, June Opprtunity, June Prgressive Current text: At least 90% f the Sub-Fund s investments in Debt Securities must be denminated in r hedged t EUR. New prspectus text: At least 90% f the fund s investments in ther funds hlding debt securitie are denminated in, r hedged int, EUR. Hwever, currency risk can still arise frm any nn-eur debt securities held by underlying funds. 5 P age