01 November 2023
Notice to the unitholders of Nordea Conservative Yield Fund
As you are a unitholder of the Nordea Conservative Yield Fund, we are sending you this letter to tell you that the fund’s management fee will change. We will increase the management fee by 0.10–0.25 percentage points, depending on the unit series. We will apply the new management fee as of 1 December 2023.
Please see the table below for the new management fees:
|
Unit series* |
Minimum investment (€) |
Current management fee |
New management fee |
|
A |
10 |
0.10% |
0.35% |
|
B |
100,000 |
0.10% |
0.30% |
|
C |
0 |
0.10% |
0.30% |
|
I |
1,000,000 |
0.10% |
0.25% |
|
S |
10,000,000 |
0.10% |
0.20% |
*The unit series are determined based on the minimum investment required. The series C is a series reserved for discretionary portfolio management, and the portfolio manager subscribes for the units in this series on the customer’s behalf.
Why are we raising the management fee?
In 2015, Nordea Funds decided to temporarily lower the management fee of the Nordea Conservative Yield Fund as a result of negative money market rates and their effect on the fund’s expected return, which also fell below zero. As we at Nordea Funds wanted to minimise the losses to unitholders, we made the decision to lower the management fee.
In 2020, we changed the investment policy of the Nordea Conservative Yield Fund, which significantly increased the fund’s expected risk and return. In this connection, we also changed the name of the fund from Euro Short Term Bond Fund to Nordea Conservative Yield Fund and the fund became a feeder fund, which is a fund that invests all its assets in another fund. The Nordea Conservative Yield Fund invests practically all its funds in the target fund Nordea 1 – Conservative Fixed Income Fund.
In 2022, money market rates started to return to a more normal level. Due to the investment policy change and the rising money market rates, the fund’s expected return is now positive again. As a result, we feel that we have justified reason to raise the management fee.
The new management fee matches the fund’s risk and return profile as well as the fees in other Nordea funds.
Do you have any questions?
The fund’s rules, key investor information documents and other information are available at www.nordea.fi/funds.
If you have questions or if you want to hear more about other investment alternatives, please contact us. If you are our personal customer, you can reach us by calling Nordea Customer Service on 0200 70 000 (local rates apply), Mon–Fri 8.00–20.00. The easiest way to call is through Nordea Mobile by selecting Help and ‘Call now’. This way your identity will be verified automatically.
If you are our Private Banking customer, you can also get in touch with your personal adviser. Our corporate customers can call Nordea Business Centre on 0200 26262 (local rates apply), Mon–Fri 8.00–20.00.