OREANDA-NEWS. November 11, 2014. The shareholders of Nordea Fund of Funds, SICAV (the “Shareholders“) are hereby informed that a new prospectus of the Company (the “Prospectus”) will enter into force on 8 December 2014, unless a different date is defined for individual changes hereafter, for the purpose of including in the Prospectus, among others, the changes summarized below.

Nordea Fund of Funds – Balanced
 
The Sub-fund Nordea Fund of Funds – Balanced is changing its name to Nordea Fund of Funds – Tactical Allocation Balanced to better emphasize on the fact that the sub-fund generates mainly value added in the tactical allocations specifically trough the choices between equity and bonds or between different equity sectors.

It is now specified that derivatives can also be used to apply efficient portfolio management techniques, there is no change of the investment policy.

In chapter 9. “Management, Management Company and Investment Manager” of the Prospectus, the investment management fee payable by the sub-fund Tactical Allocation Balanced (former Balanced) has been lowered from 1, 35 % to 1, 25 %;

Nordea Fund of Funds – Conservative
 
The Sub-fund Nordea Fund of Funds – Conservative is changing its name to Nordea Fund of Funds – Tactical Allocation Conservative in order to better emphasize on the fact that the sub-fund generates mainly value added in the tactical allocations specifically trough the choices between equity and bonds or between different equity sectors.

It is now specified that derivatives can also be used to apply efficient portfolio management techniques, there is no change of their investment policy.

 “US Person”
In chapter 2 “The Company”, the “U.S. Person” definition is amended to introduce the concept of U.S. ultimate beneficial owners and to clarify criteria leading to the concept of U.S citizen. Besides, the FATCA status of Nordea Fund of Funds, SICAV is updated to “Reporting Model 1 FFI”.

Lowered subscription fee

In chapter 5. “Share Dealing” of the Prospectus, the Subscription Fee charged to Investors upon subscribing for Shares in the Company is lowered from “up to 5 %”  to “up to 2 %” except of the Value Masters Fund where the Subscription Fee remained unchanged as “up to 5%”.

Definition of hard and soft closure

In chapter 5 “Share Dealing” the hard and soft closure definition in now introduced.

NAV suspension

In chapter 6 “Net Asset Value”: in case of NAV suspension, a notice will be published on Nordea website.
 
Conflict of interest

In chapter 9. “Management Company” of the Prospectus, a paragraph on “Conflicts of interests” is included. Such conflicts are thereby defined and it is made clear that the management company of the Company will identify, manage and monitor such conflicts in order to prevent them from adversely affecting the interests of the Shareholders.

Investment Advisor

In chapter 12 “Investment Advisor” of the Prospectus, the Management Company appointed Nordea Bank S.A., 562, rue de Neudorf,   L-2220 Luxembourg, as investment advisor of the new sub-fund Multi Manager Fund Equity;

Increased management fees

In chapter 13 “Fees, Expenses and Taxation” of the Prospectus, the maximum level of the management fees charged to both the Company and the target funds in which the Company invests, is raised from 3 % to 3,5 % to allow investments in target funds with higher management fees.

Increased maximum administration fee
the maximum administration fee disclosed previously in chapter 9 “Management, Management Company and Investment Manager” will be increased to “up to 0.40%” and moved to chapter 10 “Administrative Agent”.

New information and paying agent in Austria

In chapter 19 “Representatives & Paying Agents outside Luxembourg” of the Prospectus, the Company appointed Erste Bank der osterreichischen Sparkassen AG, Graben 21, AT-1010 Vienna as the new Information and Paying Agent in Austria; in chapter 20. “Public Marketing Authorisations” Austria has been added to countries in which Nordea Fund of Funds, SICAV is authorised for public marketing.

Shareholders who do not agree to the changes as described above may redeem their Shares free of any charges, to the exception of any other fees than the redemption that may be charged by local intermediaries. Such instruction must be received by Nordea by 5th of December 2014, 12:00 EET at the latest.

An updated version of the Prospectus dated December 2014 may be obtained, free of any charges, at the Registered Office of the Company or Nordea Bank S.A. at 562, rue de Neudorf, L-2220 Luxembourg, Grand Duchy of Luxembourg, and on the website www.nordea.lu, in the Download Centre, under the “KIID/Prospectus” section, as soon as the Luxembourg regulatory authority (the “CSSF”) has issued the visa-stamped official Prospectus. The updated Prospectus will also be published on Nordea’s homepage www.nordea.ee.

Shareholders having any question relating to the above changes should not hesitate to contact their financial advisor or Nordea call centre.