Fund trading suspended
The prevailing exceptional market turmoil has led to uncertainty in the pricing of corporate bonds. Carnegie Fonder has therefore decided to suspend trading in the funds that invest in corporate bonds.
The decision to suspend trading has been taken to protect the interests of unitholders by ensuring a correct valuation of the assets in each fund. The funds affected by the suspension of trading are all unit classes in the following funds:
- Carnegie Corporate Bond
- Carnegie High Yield Select
- Carnegie Investment Grade
- Carnegie Likviditetsfond
- Carnegie Strategifond
- Carnegie Strategy
- Carnegie Multi
- Carnegie Total
- Carnegie Total Plus
- CF Företagsobligationsfond
- CF Korträntefond
- CF Ränteallokering
This means that trading in these funds has been suspended from March 20, 2020 until further notice. Orders placed after the cut-off time on March 19, 2020 will be executed when the funds reopen for trading.
The spread of Covid-19 – the new coronavirus – has created extreme turbulence in the world’s financial markets. The market for corporate bonds has also been affected, with substantial declines and very poor liquidity, which has made it increasingly difficult to value fund assets in a way that ensures the equal rights of unitholders. Keeping the funds open for trading could disadvantage unitholders in the fund.
Are there problems with the management of the funds?
The problem is not with the management of the funds. We also want to emphasise that the companies we invest in are well-run companies with sustainable business models that we have confidence in for the long term. The problem is the large movements we are seeing in the corporate bond market, which makes it difficult to value the holdings in the funds. The Nordic corporate bond market is normally a well-functioning market with many companies in multiple industries as issuers.
Do I need to do anything as a unitholder?
No. All unitholders must be treated equally and we are suspending trading in order to protect you. The valuation of your assets must be correct. Our ambition is to always provide liquid funds that unitholders should be able to buy and sell whenever they want, but at present there are extraordinary circumstances that require extraordinary measures to protect all unitholders.
When will the funds be reopened for trading?
We will reopen the funds for trading as soon as we are sure that the value of the underlying assets in the funds is reliable and we can make accurate valuations of the funds.