Notice to the unitholders of Nordea Eastern-Europe Fund

Nordea Funds has previously announced that it is seeking ways to divest its Russian investments. After the partial split executed earlier, the only assets that remain in Nordea Eastern Europe Fund are Russian. Since buying and selling Russian securities is impossible considering the financial and political risks involved, we have on 29 September decided to liquidate Nordea Eastern Europe Fund.

Why is the fund being liquidated?

Russia’s invasion of Ukraine in late February 2022 led to a serious and exceptional disruption in the market for Russian securities. The market disruption was caused by heavy sanctions imposed on Russia that have excluded Russian companies from the global financial markets, as well as by Russia’s countersanctions that restrict the activities of foreign investors. For this reason, Nordea Eastern Europe Fund has not been able to operate normally.

The fund has been closed to new subscriptions since February 2022, but redemptions have been possible since March 2022. In September 2023 the fund was split partially into two funds with all assets except the Russian securities transferred to Nordea Emerging Europe Fund. Since the only assets that remain in Nordea Eastern Europe Fund after the partial split are Russian, we have decided to liquidate the fund. We consider a liquidation to be the best option, since buying and selling Russian securities is still impossible, considering the financial and political risks involved.

How will the liquidation affect my holdings?

You do not need to take any action upon receiving this letter. It is, however, important to notice that due to the market conditions and the prevailing restrictions, it will take a long time before all of the fund’s holdings can be sold.

When selling Russian securities becomes possible again, considering the restrictions and market conditions, the fund’s assets will be sold using the portfolio manager’s best judgment and each unitholder will receive the proceeds corresponding to their fund unit holdings. The cash assets received from the sale of the securities will be paid to the unitholders in one or more instalments.

The amount 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. 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.

Selling fund units results in capital gains or losses for persons with general tax liability in Finland. We urge you to turn to your tax adviser to get further information about the tax consequences you may incur due to the liquidation.

Once all of the fund’s proceedings have been paid out to the unitholders, Nordea Funds will prepare a written final settlement of the liquidation which will be published on our website at www.nordeafunds.com/fi/uutisia-ja-yhtiotiedotteita. To find out more about the progress of the liquidation and the planned payment schedule, please follow the updates on our website.

Questions

If you need more information on the fund’s liquidation or want to discuss other investment alternatives, please contact us. If you are a personal customer, the best way to reach us is via Nordea Mobile by selecting Help > Call now. This way, your identity will be automatically verified. You can also call us directly on 0200 70 000 (local rates apply), Mon–Fri 8.00–18.00.

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, 2 October 2023

Nordea Funds Ltd

The Board of Directors