Tundra to merge Agri&Food with Frontier Opportunities fund
Swedish manager Tundra is to merge two of its funds, citing yields that have not lived up to management expectations.
The merger of the Tundra Agri&Food fund with the Tundra Frontier Opportunities Fund was was approved by the Swedish Financial Supervisory Authority (Finansinspektionen) on 25 February 25, the manager said.
Agri&Food unit holders who choose to take no action will become unit holders in the Opportunities fund. By pursuing a merger, it allows unit holders to realise any capital gains or losses at a time they consider appropriate, the manager adds: “The closure of a fund triggers tax consequences at a time that may not be suitable for all unit holder.”
The key reason for the merger is poor yields from the Agri&Food portfolio. Interest in the fund has “consequently been minimal”.
Affected unit holders have until 27 May to sell their units without deduction of charges other than cost of settlement of securities. For those who choose to do nothing, the value of their savings will not be affected, and units in the Agri&Food fund can be bought and sold as normal up until 27 May.
The merger process will also involve an audit, in which the auditor will examing the methods used to value the assets and liabilities of the affected fund.
Tundra notes that the audit opinion is available to investors by contacting the manager on +46 8 5511 4570+46 8 5511 4570 or by email email@example.com