Notice to the unitholders of Nordea Russia Fund

Nordea Funds has previously announced its decision to liquidate the Nordea Russia Fund. The aim is to sell the fund’s securities and other investments without violating the sanctions imposed on Russia so that all the fund’s assets can be paid to the unitholders and the fund can be liquidated.

Following the decision to liquidate the fund taken in April 2022, the first instalment was paid to the unitholders in August 2022. Now investors in the fund will receive a second instalment. The payment will be made on 10 October 2023 and it will normally appear a couple of days later on the management account of your fund portfolio.

The payments will be made in instalments

Russia’s war in Ukraine continues to have a dramatic impact on the Russian equity market. In compliance with the sanctions imposed on Russia and the counter-sanctions imposed by Russia, Nordea Funds has managed to sell a small proportion of the securities held by the Nordea Russia Fund. The cash assets received from these sales will now be paid to the unitholders. The total cash amount to be paid to the unitholders in this instalment corresponds to the majority of the fund’s current value.

The fund continues to hold Russian securities, but these are currently valued at nearly zero. This is due to the fact that no reliable price can be obtained for these securities since the Russian stock market is currently not functioning normally. The situation in the Russian market will continue to affect the value of the fund. If the market recovers, this would be reflected in the value of the remaining fund units.

Once it becomes possible to sell Russian securities again, considering potential restrictions and the market situation, the fund’s assets will be sold with the unitholders’ best interests in mind. The cash assets received from the sale of the securities will be paid after debts are deducted to the unitholders in one or more instalments. The amount to be paid to you will be determined by the number of fund units you hold and the value of each unit, which is calculated based on the value of the investments at the time of sale.

This letter does not require any action on your part. The payments for redemptions will take place automatically. However, it’s important to remember that, due to the market conditions and the sanctions imposed on Russia, it may take a long time before all of the fund’s holdings can be sold. Nordea Funds complies with all sanctions imposed on Russia and will continue to sell the fund’s securities and other investments within the restrictions set out in the sanctions.

Any capital gains or losses arising from the sale of the fund units will impact your taxation (with the exception of pension saving and insurance saving contracts).

Questions

Please feel free to contact us if you have any questions. If you’re our personal customer, call 0200 70 000 (local rates apply). Our Private Banking Customers can also get in touch with their personal adviser, and corporate customers can call Nordea Business Centre on 0200 26262 (local rates apply).

Helsinki, 26 September 2023

Nordea Funds Ltd

The Board of Directors