Amendments to the rules of investment funds managed by Nordea Funds Ltd

This is to inform about following amendments to the rules of investment funds managed by Nordea Funds Ltd.

Harmonizing the valuation principles of securities

Nordea Funds Ltd has reviewed the pricing principles of the fixed-income securities in the funds it manages. This will lead to amendments to the common rules of the funds. The reason for the amendments is that we are harmonising the valuation principles of securities within the Nordea Group to optimise our pricing process and reduce operational risks.

Due to the change in the valuation method, the rules of each fixed-income fund using the swing pricing method will be amended so that swing pricing can also be used for net redemptions from the fund. This amendment applies to the following funds: Nordea Corporate Bond, Nordea European High Yield Fund, Nordea Focus Fixed Income Fund, Nordea Global High Yield, Nordea Moderate Yield Fund, Nordea Yield Fund and Nordea Emerging Market Bond Fund.

With this amendment, swing pricing will be applied more equally to subscriptions and redemptions in the fund, and the fluctuations in the NAV per unit caused by swing pricing will decrease.

The possibility to use swing pricing will be removed altogether from the rules of Nordea Swedish Institutional Short Duration Bond Fund.

Funds promoting environmental and social factors

The EU regulation on ESG (Environmental, Social and Governance) disclosures in the financial services sector (SFDR) became effective in March 2021. The rules of the funds mentioned below have been amended to include a sentence stating that the fund promotes environmental and social factors in accordance with Article 8 of the SFDR. This amendment applies to the following funds: Nordea Corporate Bond, Nordea European High Yield Fund, Nordea Focus Fixed Income Fund, Nordea Swedish Institutional Short Duration Bond Fund, Nordea Moderate Yield Fund and Nordea Yield Fund.

The Finnish Financial Supervisory Authority has ratified the amendments to the rules on 15 October 2021, and the amended rules will enter into force on 1 January 2022. The amendments require no action from the unitholders.

For further information:

The rules, key investor information documents, fees and other information related to Nordea funds are available online at www.nordea.fi/fund, through Nordea Customer Service, tel. 0200 70 000 (local rates apply), and from Nordea branches offering investment services.

Nordea Funds Ltd

Board of Directors