Danske Invest is to shift around 20 funds from their current structure into its SICAV framework as a result of legal and tax changes making the current setup unattractive for investors.
In a note dated February 6, the Danish group said it would undertake two moves to transfer FCP-compliant funds into its Luxembourg vehicle.
Danske Invest said although the funds will not be materially affected by the move, the current FCP model made them ‘almost impossible’ to market in certain jurisdictions.
‘Pursuant to legal and tax changes, in certain jurisdictions and namely in the United Kingdom, the holding and marketing of units in mutual funds, such as Danske Invest has become less attractive to the target investors.
‘These investors tend instead to favour investments in investment companies with variable capital, such as Danske Invest SICAV which are not negatively impacted by said changes,’ it said in a statement.
Danske Invest said it would be creating mirror sub-funds of the existing FCP funds to best protect investor interests. In addition, it said the change would result in more efficient fund management, while aiding distribution and marketing in impacted jurisdictions.
The funds set to be transferred on March 10 are:
- Danske Invest – Danish Bond
- Danske Invest – Danish Mortgage Bond
- Danske Invest – Denmark Focus
- Danske Invest – Europe Focus
- Danske Invest – Europe High Dividend
- Danske Invest – Europe Small Cap
- Danske Invest – European Bond
- Danske Invest – Global Corporate Bonds
- Danske Invest – Nordic
- Danske Invest – Swedish Bond
On March 17, the following funds will also be transferred from FCP to the SICAV:
- Danske Invest – China;
- Danske Invest – Eastern Europe ex. Russia
- Danske Invest - Global Emerging Markets
- Danske Invest – Global Emerging Markets Small Cap
- Danske Invest – Global StockPicking
- Danske Invest – India; Danske Invest – Japan
- Danske Invest – Russia; Danske Invest – Sweden
- Danske Invest – Trans Balkan